General Motors of Canada Ltd. will pay $9-million to its non-unionized retirees under a proposed settlement that seeks to end a long-running dispute over benefit cuts that were made during the financial crisis.
The proposed agreement applies to all salaried and executive employees who retired from GM Canada between Jan. 1, 1995 and Oct. 20, 2011 except for employees of the CAMI plant in Ingersoll, Ont. — an estimated 3,300 people.
The retirees alleged that GM had breached its contractual obligations to them when it reduced their healthcare and life insurance benefits.
The $9-million will first be used to pay for life insurance claims, and any remaining money will be used to cover healthcare benefits.
However, the settlement won’t cover the full amount of benefits originally conferred under the plan. For example, a retiree who would have received $80,000 in life insurance under the original plan will be entitled to $60,000 under the settlement.
The settlement must still be approved by a judge.
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