Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Home Workplace Legislation/Press Releases Workers gain protection as pension super-priority Bill receives royal assent: Unifor

Workers gain protection as pension super-priority Bill receives royal assent: Unifor

by Unifor

By Unifor

Bill C-228, a private members’ bill that gives pension plan members super-priority during plan windups and bankruptcy proceedings received royal assent.

“This change has been many years in the making. I’m glad to see lawmakers in both chambers say ‘enough is enough’ and put workers first by adopting this legislation,” said Lana Payne, Unifor National President. “Pensions are deferred wages and they cannot be allowed to be stripped away and put to the back of the line if the company closes up shop.”

Despite being adopted, the Bill’s changes will not come into effect for four more years. C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985 was a private members’ bill tabled by the MP for Sarnia-Lambton Marylin Gladu.

“For too long, corporate bosses have been allowed to doll out dividends and executive bonuses during bankruptcy while retirees had their fixed and often already low incomes slashed. Canadians remember the Sears closure, and the devastating effects of the old system of prioritization. This law finally corrects that order of priorities to protect pensioners,” said Les MacDonald, Unifor National Executive Board Retirees Representative.

MacDonald presented to the Senate Committee considering the Bill in February 2023 and reported on the positive impact the legislation will have on retirement security for workers in Canada.

Currently, if an employer has a defined-benefit pension plan and declares bankruptcy or insolvency, the plan needs to be wound up so that all pension assets are paid out. Pension plans may suffer from wind up deficits, a term that calculates the amount of additional money needed to fund the benefits to 100% for retirees on the date of wind up. Bill C-228 will put any outstanding amounts due to the pension fund wind up ahead of secured creditors, regardless of whether the corporate entity declares bankruptcy or restructuring.

The union supported the adoption of this legislation and will continue to negotiate strong pension benefits for members in every region of the country

“Bill C-228 means that workers can have even more faith that their negotiated pensions are guaranteed. They put in the work, they deserve the benefits. Why shouldn’t workers come first?” continued Payne.

Unifor is Canada’s largest union in the private sector and represents 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

You may also like