Quote:
Originally Posted by Resolute 14
Canada Post may be a Crown Corp, but when you say taxpayers take the risk and not Canada Post, that is only a half truth. We are on the hook if nothing changes and the problem only gets worse. So Canada Posts's loss is our loss, but so too is Canada Post's gain our gain. It is not a three way scenario like you would like to create.
Also, your final sentence applies just as strongly to the union. They don't care if tax payers suffer, so long as they don't.
In terms of being at the mercy of future politics, I'm not so sure. If Locke is still reading this thread, he might be able to explain some of the financial details and responsibilities. However, I do know that when Chretien raided the pension surpluses in the 90s, several unions sued about it. The SCoC ruled that the government had the right to that because its actions did not deny the plan members anything they were promised. The corollary to that is that if Canada Post/the government were to take a step to try and deny that pension, the courts would slap down the government. I think it is extremely safe to say that the existing plan members are safe.
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There is nothing that guarantees the taxpayers will be forced to bailout the pension plan if it cannot cover its liabilities, I think you can agree with that statement. Yes there would likely be a court hearing on the matter, but to assume that a legal precedent has been set because another case from what will at that time have been potentially a half century prior and a different situation entirely that just so happened to involve pension funds is a pretty big reach in my opinion. If a legal expert tells me differently or if there are other such precedents that have been set I'll reconsider my opinion.
Yes the union clearly and rightfully so has their members interests as their top priority, but I haven't seen anything reported that they have come forward with a proposal that puts only Canada post and the taxpayers at risk while they absolve themselves from the issue all together. Do you really think they don't care if the deficit doesn't get fixed and are assuming that they will get a guaranteed bailout one way or another? Each postal worker has more at risk than any tax payer or Canada post in this issue.