(Source: Globe and Mail, February 26, 2012)
TORONTO — Pension reform is casting a shadow over contract talks at Canadian Pacific Railway Ltd. and Air Canada as labour strife heats up at two of the country’s largest transportation firms. CP negotiators recently delivered a presentation to union officials on revising the formula for defined-benefit plans, which provide a guaranteed payout at retirement. The Calgary-based railway, which is under significant pressure from major shareholders to cut costs, has floated several ideas, including the introduction of less-costly defined-contribution plans for new hires and capping post-retirement benefits.
Full story: Globe and Mail