General Motors of Canada Ltd. is making some big changes to the pension plans and health-care benefits of its salaried employees. This comes just as the company starts wage negotiations with its unionized workers.
From The Globe and Mail:
A defined-benefit pension plan for the company’s salaried employees will be converted to a less-expensive defined-contribution plan beginning Jan. 1. Salaried employees who retire after 2014 will receive lump-sum payments for health care instead of the traditional plan that had given them coverage for vision, dental and other expenses.
The move also shows that three years after its parent company was restructured under bankruptcy protection, the Canadian unit of GM is trying to reduce or eliminate “legacy costs” from its decades of market domination.