IAM pension plan takes effect as company transitions out of DC plan
Employees at Safran Landing Systems in Ajax, Ont. ratified a collective agreement on Sept. 29.
“The employer was winding down their defined contribution pension plan, so this was a great transition,” says Gary Hynes, International Association of Machinists and Aerospace Workers (IAM) grand lodge representative. “The company will contribute into the plan based on our members’ age from seven per cent, right up to 11.5 per cent, while our members’ contributions will remain steady. This is a big win.”
The new collective agreement also includes general wage increases of two per cent in the first three years to three per cent in the final year of the five-year agreement. The members also received increases in short- and long-term disability, a wider application of bereavement leave and new improvements on the previous dental plan, life insurance and paramedical services, says the union.
