Rich landmark settlement for workers facing plant closure at Visteon

21 March 2001 - Employers and the International Association of Machinists and Aerospace Workers (IAMAW) have agreed on what may be the richest ever plant closure package in Ontario. Pension and benefit improvements worth more than $128-million are being made available for the 1084 employees at Visteon Canada Inc, an auto parts manufacturer which is due to close over the next 18 months.

"This agreement goes a long way to relieve the terrible anxiety which has plagued our members since Visteon tossed a bombshell into their world back in January. I'm tremendously proud of our local union people who have worked literally around the clock to secure this agreement to ease the nightmare of economic insecurity amongst our members, "said Dave Ritchie, IAMAW Canadian Vice President.

The settlement has been ratified (according to the IAMAW) and means that any worker aged 55 will be eligible for unreduced pension benefits with no minimum years of service requirement.

Employees with 25 years of service are able to retire on a full pension, plus $430 per month bridging for up to 60 months. They also have full health care benefits - including prescription drugs, dental and vision care.

Workers aged 55 with less than 25 years of service are eligible for a pension pro-rated to their length of service. So a 55 year old employee with 21 years of service will get 21/25ths of the full benefit. Additionally, there will be a bridging benefit (maximum of 60 months) in the amount of $430, up from $405 per month, again pro-rated for those with less than 25 years service.

Also workers whose age and service total the magic number "55" will be treated as if they had continued to be employed until they were eligible for unreduced early retirement. This is commonly called the "grow in" feature of Ontario pension legislation.

Employees at the plant have an average age of 50, and an average 20 years service.

Those employees who do not qualify for the pension "grow in" benefit will be entitled to severance pay equal to three weeks pay for each year of service.

Employees who are eligible for "grow in" provisions - but not immediately eligible for an unreduced pension - will get two weeks pay for each year of service.

Workers who are eligible for a full pension will get one week of pay for each year of service.

In the event of the plant being sold, Visteon will ensure that employees transfering to the successor company will retain severance eligibility or be paid a $10,000 bonus.

Other benefits include:

- establishment of an Employee Assistance Program;
- a $250,000 contribution to a Labour - Management Adjustment Committee;
- $2,000 for each employee for tuition and training and a $400 cash payment at the time of ratification.