PRESIDENT’S REPORT-

With 2011 coming to an end we now start to look ahead to bargaining in 2012, man the time flies. One issue that has come up for me is the  Defined Contribution Plan as compared to our Defined Benefit plan, recently there was an article in the Vancouver Business News magazine that laid out the differences and one of the examples they used was from a former Teck supervisor.

Back in 1992 then Cominco persuaded a significant number of management staff to switch to a DC plan from the DB plan they were on, with the promise that their pensions would be no different and possibly better. The former supervisor stated that the new DC plan “showed that at age 58 he would get the same amount as he would have on the DB plan,” which sadly turned out not to be true, in fact, it was considerably less. He also went on to say “when we were given more information about what was happening, that’s when he realized it wasn’t a good thing for him to switch, most of the info was in favour of the Company wanting him to switch.”  He states as well “the benefits of a DB plan are obvious, had he stayed on the DB plan he’d have double the income he receives today.” He has had to go back to work to supplement his pension, he retired at 58 and is now 63 still working. The article also went on to say “ Most human resources experts agree that a Defined-Benefit pension plan remains one of the best employee retention tools, because an employee’s pension usually grows for each successive year of employment. A Tower Watson survey released earlier this year noted that companies that maintain an open DB plan are seen as more attractive to prospective employees, because the DB plan is seen as more valuable than a DC plan.” Just something to keep in mind, the article is called “Devaluing Retirement Dreams.”

With the outgoing of 2011 and the festive season upon us, I hope that everyone has a chance to enjoy some time with family and friends through the New Year and that 2012 brings all of us health and prosperity. It is a time when parties and dinners are in full swing, so I also hope that everyone travels in a safe and responsible manner. Merry Christmas and a Happy New Year from myself and the Executive of Local 480.

If you’re looking for gift ideas we have some very nice fleece lined hoodies on sale at the Union Hall.

Our sister Local 9705 is hosting the Open House this year, which will be held on Friday December 16^th,  with some appy’s and cheer, hope to see you there.

Doug