Read this article in:
27 March, 2001The International Association of Machinists and Aerospace Workers has announced a deal worth $128 million for workers facing plant closure.
CANADA: The International Association of Machinists and Aerospace Workers, representing 1,084 employees at an Ontario factory being closed by Visteon Canada, has announced an unprecedented closure package worth $128 million (US$81.6 million, C$1 = US$0.638) or an average of $118,000 per worker. The IAM said the package is believed to be the richest in Ontario history.
Visteon, a Ford Motor Company spinoff based in Dearborn, Michigan, announced in January it would shut down its electronic components factory in Markham, north of Toronto, in stages over the next 18 months to two years. It is the largest permanent plant closure in the current round of auto industry cutbacks.
Under the ratified settlement, any employee over the age of 55 will be eligible for full pension benefits with no minimum years of service requirement. Those with 25 years of service can retire with a full pension, plus $430 per month for up to five years to bridge them to the Canada Pension Plan, and with full health-care benefits.
The agreement also expands benefits for workers whose seniority would not otherwise qualify them for full pensions. The average age at the plant is 50, with an average of 20 years of service. Employees who do not qualify for the augmented pension benefits will be entitled to severance of three weeks' pay for each year of service.
If the plant is sold, Visteon will ensure that employees who transfer to the successor company will retain severance eligibility or be paid a $10,000 bonus.
There are various other benefits, ranging from a $400 cash signing bonus to an employee assistance programme and up to $2,000 per employee to pay for tuition and training.
Visteon, spun off by Ford last year, lost US$87 million in the fourth quarter of 2000, down from a year-earlier profit of US$95 million. The company has temporarily laid off about 6,000 workers in the United States this year.
For additional information on the Visteon plant closure, visit the IAMAW Canada website on www.iamaw.ca
Source: CP (with files from the IAMAW Canada)
Note: All dollar figures, unless specified otherwise, are in Canadian dollars.
Visteon, a Ford Motor Company spinoff based in Dearborn, Michigan, announced in January it would shut down its electronic components factory in Markham, north of Toronto, in stages over the next 18 months to two years. It is the largest permanent plant closure in the current round of auto industry cutbacks.
Under the ratified settlement, any employee over the age of 55 will be eligible for full pension benefits with no minimum years of service requirement. Those with 25 years of service can retire with a full pension, plus $430 per month for up to five years to bridge them to the Canada Pension Plan, and with full health-care benefits.
The agreement also expands benefits for workers whose seniority would not otherwise qualify them for full pensions. The average age at the plant is 50, with an average of 20 years of service. Employees who do not qualify for the augmented pension benefits will be entitled to severance of three weeks' pay for each year of service.
If the plant is sold, Visteon will ensure that employees who transfer to the successor company will retain severance eligibility or be paid a $10,000 bonus.
There are various other benefits, ranging from a $400 cash signing bonus to an employee assistance programme and up to $2,000 per employee to pay for tuition and training.
Visteon, spun off by Ford last year, lost US$87 million in the fourth quarter of 2000, down from a year-earlier profit of US$95 million. The company has temporarily laid off about 6,000 workers in the United States this year.
For additional information on the Visteon plant closure, visit the IAMAW Canada website on www.iamaw.ca
Source: CP (with files from the IAMAW Canada)
Note: All dollar figures, unless specified otherwise, are in Canadian dollars.