The setback by ex-White Birch workers this week in Supreme Court has sparked empathy among various retiree groups across the province and across Canada. Notably because the paper mill retirees hoped to see the highest court in the country rule on the fate of defined benefit pension plans in the event of the bankruptcy of a private company.
The former workers of the White Birch of Quebec lost 30% of their pension after the buyout and relaunch of the plant in 2012. Among their conditions, the new owners had imposed the termination of the previous pension fund, then heavily in deficit. .
Without a legal framework to protect their benefits, the retirees had sued their union in the hope of recovering the sums, in vain. They owed him a fiduciary duty and accused him of not having consulted them before accepting the employer’s offer. A claim that did not hold water in the Court of Appeal.
Former White Birch workers have gone to the Supreme Court to seek justice, to no avail.
Photo: Radio-Canada / Olivia Laperrière-Roy
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“Insensitivity”
Their fight was followed closely by retirees from the newspaper The sun and other newspapers of the late Groupe Capitales Médias. The latter suffered the same fate as the White Birch workers when the press group went bankrupt in 2019.
It is a decision of the Supreme Court and we must respect that. […] But it is disappointing. It’s sad especially for retirees, surviving spouses or heirs
, laments Pierre Pelchat, spokesperson for the Association of retired employees of Soleil. They have fought a hard battle for themselves and the other retirees who will one day or another be penalized.
In an interview on Saturday, he had a special thought for the president of the group of retirees of White Birch, Gilles Bédard, who devoted ten years of his retirement to this legal battle. I have a lot of empathy for him
, he confides.
Pierre Pelchat, spokesperson for the Association of retired people from the Sun
Photo: Radio-Canada
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If he is disappointed with the outcome, Mr. Pelchat does not take offense at the Supreme Court’s decision. On the contrary, he says, for us, the battle continues
. In his opinion, several options remain on the table in order to obtain justice.
He recalls that the retirees of the Capitales Médias Group have lodged their own appeals to the Administrative Labor Court for lack of representation on the part of their former central union.
To the government to act
Beyond the lawsuits, Mr. Pelchat believes that elected officials must take note without further delay of the fights waged by former workers, often elderly, who are deprived of part of their pension for which they have contributed all their life. Some, he recalls, had already modest pension benefits10000$per year “,” text “:” less than $ 10,000 per year “}}” lang = “fr”>less than $ 10,000 per year.
On the provincial scene, he is impatient with the inaction of the Minister of Finance, Eric Girard. It’s up to the government to make the right decisions to protect retirees
, he slices, accusing the Legault government of being insensitive to the fate of retirees.
It is incomprehensible that the government is not more sensitive to the situation experienced by retirees.
He recalled that Ontario legislated in this area more than 40 years ago and that the province set up an insurance fund. Ontario has demonstrated it. There are no lawsuits, lawsuits or dramas in Ontario with a company that goes bankrupt with a deficit pension fund. Annuity insurance applies
, he emphasizes.
Quebec Minister of Finance Eric Girard
Photo: Radio-Canada / Sylvain Roy Roussel
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This demand for an insurance fund is back in the news at the option of bankruptcies that turn badly for retirees. In 2018, the case of Sears Canada retirees in particular revived the debate. While a worker in Quebec lost a third of his pension, another in Ontario was still receiving his full pension.
The Canadian Federation of Retirees is campaigning tirelessly to obtain such a gain for Quebec and the other Canadian provinces. We continue to demand the creation of pension fund insurance, and this demand remains paramount
, maintains the treasurer Jean-Paul Joanisse.
“Sacrificial lambs”
In Quebec, the groups of retirees will be able to count on some political support in their battle. I find it terrible
, launches Vincent Marissal, member of Quebec solidaire, about the case of the employees of White Birch. The Supreme Court refused to hear them. And that’s kind of their situation.
Citing several similar cases, he sees the current generation of retirees as sacrificial lambs of the big economy
. He says he questioned Eric Girard on several occasions for the constitution of a pension insurance. It’s an end of inadmissibility
, he laments. This government has a very clear bias towards businesses.
Vincent Marissal, Member of Parliament for Rosemont
Photo : Radio-Canada / Tifa Bourjouane
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Without better supervision, Vincent Marissal says that retirees like those of White Birch or Groupe Capitales Médias find themselves in a really uncomfortable situation
.
They are forced to fight for what is due to them. But on the other hand, they are told that they have the survival of their business in their hands. […] It’s not really a negotiation.
The Parti Québécois is also behind the groups of retirees and is joining its voice for the creation of an insurance fund. It is unacceptable that companies can harm retirees by usurping part of their pension funds. We must act to protect our retirees
, reacted the deputy Sylvain Roy.
Radio-Canada tried to get a reaction from Eric Girard’s cabinet, without success. In May, however, the Minister of Finance was not enthusiastic about an insurance fund. He expressed that Quebec employers […] already bear significant costs for these plans
.
He had made similar comments a few months earlier.
Priority creditors
The fight is also being played out on the federal scene.
In recent years, the Bloc Québécois and the New Democratic Party have called for changes to the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act.
The last such bill was tabled last November by the Bloc. One of the objectives is to designate retirees as priority creditors in the event of bankruptcy.
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