The Supreme Court of Canada has overturned a $100,000 punitive damages award given to a former employee of Honda Canada.
Kevin Keays, who suffered from chronic fatigue syndrome, sued the automaker, alleging that he was wrongfully dismissed. He was originally awarded $500,000, but that was later reduced to $100,000 by the Ontario Court of Appeal.
“Punitive damages are restricted to advertent wrongful acts that are so malicious and outrageous that they are deserving of punishment on their own,” wrote Justice Michel Bastarache. “The facts of this case demonstrate no such conduct.”
Keays was also originally award 24 months of back pay, but the Supreme Court reduced that to 15 months salary.
For some background information on this case, click here to read Honda Looks to Supreme Court in Discrimination Case.
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Balancing Interests of Pension Plan Sponsors and Members
The decision by the Alberta Court of Queen’s Bench to dismiss an action brought by former Alberta employees of Imperial Oil confirms the need to balance the interests of plan sponsors and members in developing pension jurisprudence, according to an Osler Update.
The plaintiffs alleged that an amendment to the company’s pension plan was invalid as it breached both the Employment Pension Plans Act, 1986 (Alberta) and the plan.
Prior to the amendment in 1991, the plan provided for enhanced early retirement benefits for members who had a minimum of 10 years of service with Imperial Oil and were terminated for reasons of efficiency. Following the amendment, members were further required to be eligible to retire within five years of termination—in other words, they had to be at least 50 years of age or older.
Shortly after the plan was amended, Imperial Oil terminated a number of employees, including the plaintiffs, in a downsizing effort. As all of the plaintiffs were under the age of 50 at the time of their termination, the plaintiffs were not eligible to receive enhanced early retirement benefits under the amended section.
Associate Chief Justice Wittmann dismissed the plaintiffs’ claims that the amendment breached the EPPA and Imperial Oil’s fiduciary duty, finding that these issues had been previously decided by the Pension Commission of Ontario.
“This decision provides comfort to Alberta pension plan sponsors by clearly applying legal principles enumerated in other jurisdictions to Alberta pension law,” says the Update. However, given that this decision was rendered by the Alberta Court of Queen’s Bench, it remains to be seen whether it will be the defining pronouncement on these issues in Alberta.”
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Younger Workers Want Advancement Opportunities, Benefits
Generations X and Y are looking for advancement opportunities, performance-based bonuses and a great benefits package when looking for work, but employers’ are out of touch with what the younger generations want, reports a survey.
The David Aplin Recruiting survey finds that the most important incentives according to gen X and Y employees are: opportunities to climb up the corporate ladder (90%), performance-based bonuses and salary increases (88%), and an excellent benefits package (86%).
However, the percentage of companies offering those incentives isn’t as high as those generations’ expectations. Sixty percent of companies offer advancement opportunities, 66% offer performance-based bonuses and a raise in salary, and 62% offer an excellent benefits package.
In addition to offering the incentives that gen X and Y want most, the survey recommends employers can stand apart from the crowd by offering perks that are in relatively high demand, but very few companies are currently offering them. These include: signing bonuses, Subsidized transportation, free fitness memberships, and company stock options.
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Boeing Updates Retirement Program
Boeing is introducing a new defined contribution (DC) program for non-union employees in the United States hired or rehired on or after Jan. 1, 2009.
Under the new plan, the aircraft maker will contribute an amount equal to 3%, 4% or 5% of a new employee’s pay (depending on age), regardless of whether the employee contributes to the plan.
Boeing will also match employee contributions dollar for dollar for the first 4% of pay the new employee contributes and 50 cents on the dollar for the next 4% of pay the new employee contributes. The automatic company and company matching contributions will both be fully vested immediately.
“This new approach addresses new employee preferences for retirement programs that offer flexibility and portability and responds to market trends and practices of peer companies,” says Rick Stephens, senior vice-president of Boeing human resources and administration. “At the same time, it allows us to better manage our retirement plan expenses and reduce financial risk.”
The change will not affect the company’s more than 525,000 current employees, former employees, or retirees who participate in the company’s existing savings and pension plans.