ACPA Calls for OSFI Action to Protect Pensions

The Air Canada Pilots Association (ACPA) and other unions representing Air Canada employees are asking the federal Office of the Superintendent of Financial Institutions (OSFI) to intervene in the wind-up of the airline's parent holding company, ACE Aviation Holdings Inc., because of concerns that the transaction would put pension plans at risk and jeopardize the retirement security of the airline's employees and pensioners.

In a letter to OSFI Superintendent Julie Dickinson, lawyers for ACPA and the other unions ask OSFI to investigate the proposed ACE wind-up and ensure that ACE and Air Canada make adequate provision to meet their pension obligations before any distribution is paid to ACE shareholders.

"We're calling on OSFI to intervene because we're concerned that once the ACE wind-up is complete, Air Canada's employees and pensioners will be left out in the cold," said ACPA President Captain Andy Wilson. "ACE has already paid its shareholders more than $2 billion while completely ignoring its obligations to Air Canada's pension plans," Captain Wilson said. "This has left Air Canada's pensions in a very vulnerable position."

The letter asks OSFI to require that ACE and Air Canada meet their pension obligations before the wind-up of ACE is completed. ACE owns 75 per cent of Air Canada shares and has been actively administering the airline's pension plans.

"Air Canada pension plan members made generous concessions to the company during its restructuring, including a five year time extension to repay the pension shortfall," Captain Wilson said. "Instead, ACE has used that time to extract as much as possible from Air Canada. It is time for OSFI to step up to the plate."

The Air Canada Pilots Association is the largest professional pilot group in Canada, representing the more than 3,000 pilots who fly Air Canada's fleet.

Contacts: Air Canada Pilots Association (ACPA) Paul Howard Director of Communications (905) 678-9008 ext. 222 or Toll Free: 1-800-634-0944 (905) 678-9016 (FAX) Email: info@acpa.ca