IT'S TIME TO END PENSION THEFT IN CANADA
When large Canadian companies can’t pay their bills, they have two options. They can file for bankruptcy, sell off all their assets, and pay their creditors what they can out of what is left. Or, if they have over $5 million dollars in debt, they can file for protection under the Companies Creditors Arrangement Act (CCAA) and negotiate a deal with their creditors which will allow them to keep operating.
Many Canadian companies use the CCAA to effectively gain concessions from their employees and escape responsibility for often huge pension deficits they themselves have created. Workers are left with the threat of reduced pensions and health care benefits.
Large multinational corporations are using Canada’s inadequate bankruptcy laws to take money meant for workers’ pensions and divert it to pay off their secured creditors who are often their parent companies. This is organized theft.
The Liberals campaigned on a promise to improve the income retirement security of all Canadian seniors, but have refused to propose solutions for or even acknowledge the grim future of the workers and retirees involved in recent bankruptcy proceedings.
We are working to curb the ability of multinational corporations and the financial sector to use their money and influence to promote economic blackmail that prioritizes shareholders and profits and leaves workers and the rest of Canadians holding the bag.
HOW WILL WE DO THIS?
Early in the fall session 2017, NDP pensions critic Scott Duvall (MP Hamilton Mountain) introduced Bill C-384 will:
Amend the Bankruptcy and Insolvency Act (BIA) and the CCAA to require companies to bring any pension plan fund to 100% before paying any secured creditors,
Amend the Bankruptcy and Insolvency Act (BIA) and the CCAA to require companies to pay any termination or severance pay owing before paying any secured creditors,
Prevent a company from stopping the payment of any retirement benefits during any proceedings under the BIA or CCAA.
We’re calling on the Liberals to fix the bankruptcy laws that put their wealthy insider friends ahead of hardworking Canadians.
Join us, and help protect rights of workers across Canada.