HALIFAX – The United Steelworkers (USW) has told the Law Amendments Committee of the Nova Scotia Legislature that reforms to pension law need to be made as soon as possible.

        "In addition to the plight of our members at TrentonWorks, this amendment to the Pension Benefits Act is long overdue for the pension protection of all workers in Nova Scotia," said USW Ontario/Atlantic Assistant Director Marie Kelly.

        "Our support for this amendment is rooted in our commitment to the principle that well-funded and secure pension plans are an integral component of a fair and equitable compensation package for working people, both unionized and non-unionized."

        Kelly said it is in workers' interest to know that pensions are regulated in such a way that ensures they remain viable over the long term.

        "The decision by Greenbrier Companies to close its railcar production in Nova Scotia and to move its production to Mexico makes the need for strong legislative protection abundantly clear," she told the committee.

         When Greenbrier announced the closure, TrentonWorks informed USW members that the pension plan would have a solvency deficiency of about 10 per cent when it was wound up.  More significantly, it declared that it was under no obligation under the Pension Benefits Act to fund that solvency deficiency.

         As it currently stands, an employer is not under any obligation to fully fund a pension plan at the time of wind-up if there is a solvency deficiency.

         Jurisdictions such as Ontario, British Columbia and Alberta already provide significantly superior protections for pension plan members at the time of wind-up than does Nova Scotia.  In those jurisdictions, employers are compelled to fund solvency deficiencies, ensuring that plan members receive promised benefits.

         "The proposed legislative amendments bring Nova Scotia's pension regime into the 21st century," said Kelly.  "Passing it will ensure that companies that have the ability to pay will no longer be able to avoid their promised pension plan obligations."

         The USW represents more than 280,000 men and women working in every sector of Canada's economy.

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CONTACT:        Marie Kelly       416.705.3627
            Wayne Fraser  (Ontario/Atlantic Director)    416.243.8792; 416.577.4045