Three opposition parties yesterday announced a pact to speed passage of a bill to save pensions in cases of insolvency..According to Blacklock's Reporter, MPs have tried and failed to pass similar amendments to the bankruptcy law since 1975..“All parties think pension protection is important,” said Conservative MP Marilyn Gladu (Sarnia-Lambton, Ont.), sponsor of Bill C-228 An Act To Amend The Bankruptcy And Insolvency Act. The bill would designate company pensioners as preferred creditors in bankruptcy settlements..“All parties have indicated their desire to get this to committee,” said Gladu. “We hope to see this go to committee and beyond that to really do something to ensure those Canadians who worked their whole lives get their severance and the pension they deserve.”.The bill was endorsed by Conservative, New Democrat and Bloc Québécois caucuses with 176 votes in the 338-seat Commons. “What is different and what is exciting for workers is we’re seeing kind of a working majority come together to talk about how we do this in the best possible way,” said New Democrat MP Daniel Blaikie (Elmwood-Transcona, Man.)..“Companies have gone bankrupt and workers have lost their pension as a result,” said Blaikie. “That is something that needs to change.”.The Department of Finance has estimated 1.2 million private sector workers have defined benefit pension plans. The Canadian Bankers Association in 2021 testimony at the Commons industry committee opposed a similar Bill C-253 on claims it would lead to higher borrowing costs for corporations..“The proposals contained in this bill would require banks and others who provide capital to businesses to factor in potential losses associated with unfunded pension obligations coming first in the event of bankruptcy,” Charles Docherty, assistant general counsel for the Bankers Association, testified at June 3, 2021 hearings..“That’s the incentive this bill creates,” replied Conservative MP Pierre Poilievre (Carleton, Ont.). “What it would actually do is force management to get pensions in order now.”.“If you’re a CEO and your lenders are all telling you, ‘Listen, the big obstacle to lending to you is you don’t properly fund your pension plan,’ the first thing you’re going to do is try to find a way to fund your pension plan,” said Poilievre. “It’s in your interest.”.The industry committee was told of 1,230,000 corporations in Canada the majority, about 98 percent, are small businesses. “Another 1.9% or 22,905 of them are medium sized businesses,” said Liberal MP Majid Jowhari (Richmond Hill, Ont.). “There are only about 2978 which is 0.2% that are large businesses.”
Three opposition parties yesterday announced a pact to speed passage of a bill to save pensions in cases of insolvency..According to Blacklock's Reporter, MPs have tried and failed to pass similar amendments to the bankruptcy law since 1975..“All parties think pension protection is important,” said Conservative MP Marilyn Gladu (Sarnia-Lambton, Ont.), sponsor of Bill C-228 An Act To Amend The Bankruptcy And Insolvency Act. The bill would designate company pensioners as preferred creditors in bankruptcy settlements..“All parties have indicated their desire to get this to committee,” said Gladu. “We hope to see this go to committee and beyond that to really do something to ensure those Canadians who worked their whole lives get their severance and the pension they deserve.”.The bill was endorsed by Conservative, New Democrat and Bloc Québécois caucuses with 176 votes in the 338-seat Commons. “What is different and what is exciting for workers is we’re seeing kind of a working majority come together to talk about how we do this in the best possible way,” said New Democrat MP Daniel Blaikie (Elmwood-Transcona, Man.)..“Companies have gone bankrupt and workers have lost their pension as a result,” said Blaikie. “That is something that needs to change.”.The Department of Finance has estimated 1.2 million private sector workers have defined benefit pension plans. The Canadian Bankers Association in 2021 testimony at the Commons industry committee opposed a similar Bill C-253 on claims it would lead to higher borrowing costs for corporations..“The proposals contained in this bill would require banks and others who provide capital to businesses to factor in potential losses associated with unfunded pension obligations coming first in the event of bankruptcy,” Charles Docherty, assistant general counsel for the Bankers Association, testified at June 3, 2021 hearings..“That’s the incentive this bill creates,” replied Conservative MP Pierre Poilievre (Carleton, Ont.). “What it would actually do is force management to get pensions in order now.”.“If you’re a CEO and your lenders are all telling you, ‘Listen, the big obstacle to lending to you is you don’t properly fund your pension plan,’ the first thing you’re going to do is try to find a way to fund your pension plan,” said Poilievre. “It’s in your interest.”.The industry committee was told of 1,230,000 corporations in Canada the majority, about 98 percent, are small businesses. “Another 1.9% or 22,905 of them are medium sized businesses,” said Liberal MP Majid Jowhari (Richmond Hill, Ont.). “There are only about 2978 which is 0.2% that are large businesses.”
