Pension Protection Act

An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

Sponsor

Marilyn Gladu  Conservative

Introduced as a private member’s bill.

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to ensure that claims in respect of unfunded liabilities or solvency deficiencies of pension plans and claims relating to the cessation of an employer’s participation in group insurance plans are paid in priority in the event of bankruptcy proceedings.
It also amends the Pension Benefits Standards Act, 1985 to provide for the tabling of an annual report respecting the solvency of pension plans.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Nov. 23, 2022 Passed 3rd reading and adoption of Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985
June 22, 2022 Passed 2nd reading of Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

Myra Falls MineStatements by Members

February 2nd, 2024 / 11 a.m.
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NDP

Rachel Blaney NDP North Island—Powell River, BC

Madam Speaker, in my riding of North Island—Powell River, days before Christmas, with no notice, over 300 employees were told that the Myra Falls Mine was shutting down. I sat down with Unifor Local 3019, which is working hard with all levels of government to protect its workers. Its ask of me was simple: When will the rules finally be fixed in Canada to protect workers' pensions and local small businesses in our community when big projects shut down?

We know that the Bloc and the NDP pushed very hard to get Bill C-228 through this place last year. In fact, it received royal assent in April of last year, so where are the regulations? Where is the government in finally making workers a priority in this country? When will we see workers and their pensions at the top of the list instead of at the bottom?

Workers in Canada do not deserve this. Our small communities have seen these boom-and-bust cycles again and again. The workers and their local communities bear the weight of it. It is time that they were protected. We must get the regulations in place now.

Motions in amendmentAffordable Housing and Groceries ActGovernment Orders

December 5th, 2023 / 12:45 p.m.
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NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, of course, the best help that Canadians can get with affordability challenges is a well-paying job.

We know there are 605 media workers who are going to be out of a job because Metroland Media decided that it would shut down 70 print community papers.

One of the things that the government did, and I am quite happy to say worked with opposition parties to get it done, was Bill C-228, to provide pension protection in the case of bankruptcy.

However, the NDP had also negotiated amendments to protect the severance pay of workers. The member for Winnipeg North struck those provisions out on a point of order and then later denied unanimous consent in order to get them put back in.

I am wondering if the member wants to take this opportunity to talk to those 605 families and explain why he wanted to put the predators at Metroland Media ahead of those families getting their severance.

Protection of Pension PlansStatements by Members

April 20th, 2023 / 2:15 p.m.
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Bloc

Marilène Gill Bloc Manicouagan, QC

Mr. Speaker, pension plans are finally protected. The Senate has just passed Bill C‑228. After tabling this bill three times, every time I was elected, and after seven years of raising awareness, providing information, collaborating, coordinating, rallying public opinion and negotiating, I can finally say, to everyone who helped ensure pension plans would be protected in the event of bankruptcy or restructuring, “mission accomplished”.

I want to offer my warmest congratulations to the Cliffs retirees, who approached me in 2015 to speak on their behalf in Ottawa. From the bottom of my heart, I thank the United Steelworkers for believing in this cause and supporting it from start to finish. Their voice has been heard. I also want to thank my colleagues in both houses. On a more personal note, I especially want to thank the member for Sarnia—Lambton.

Workers and their unions are the ones who change things, and changing things requires strength, solidarity and respect.

Financial Protection for Fresh Fruit and Vegetable Farmers ActPrivate Members' Business

April 19th, 2023 / 7:20 p.m.
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Dartmouth—Cole Harbour Nova Scotia

Liberal

Darren Fisher LiberalParliamentary Secretary to the Minister of Seniors

Madam Speaker, it is always an honour to rise on behalf of the good people of Dartmouth—Cole Harbour, in Nova Scotia. I certainly appreciate the opportunity to discuss Bill C-280 with my esteemed colleagues here in the House today.

We will undoubtedly hear more about the merits of this bill from our colleagues. For my part, I will focus on offering an overview on the changes it would bring to our insolvency regime, in particular where it would place fresh produce sellers in relation to other creditors, including farmers of other types of perishable products, employees, pensioners and potentially smaller and more local suppliers.

To fully grasp Bill C-280, we must start by considering how our insolvency laws currently work. There are two main insolvency laws in Canada: the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act, the CCAA. These laws address both business and personal insolvencies.

Business insolvency solutions include both restructuring and liquidation options to distressed businesses to mitigate impacts and make the best of a bad situation. If restructuring is not feasible and a liquidation is required, the BIA ensures the orderly liquidation of assets and distribution of proceeds to creditors. At the top of the list are deemed trusts and superpriority creditors, which currently include limited amounts for farmers, fishers and unpaid suppliers, including the fresh produce suppliers that are meant to benefit from this bill. It also includes amounts owed to employees for unpaid wages. Next are secured creditors, followed by preferred creditors and unsecured creditors, which would include most unpaid suppliers, such as landlords and construction and repair businesses.

First, as I briefly mentioned, there is already a limited superpriority for Canadian farmers, fishers and aquaculturists, which entitles them to payment ahead of other creditors for amounts owing on products delivered within 15 days of bankruptcy. The superpriority available to farmers under this provision applies to the bankrupt buyer's inventory or the proceeds of the sale of the inventory. Unlike Bill C-280, the existing superpriority applies to all Canadian farmers, including producers of other perishable agricultural commodities such as milk and eggs.

Second, any unpaid suppliers of goods, including fresh produce sellers, can seek to recover unsold, identifiable goods from a bankrupt purchaser within 30 days of delivery. Canada's insolvency laws balance debtors' and creditors' interests, enabling businesses, including those in agriculture and agri-food, to access credit, invest, create jobs and treat creditors equitably.

Typically, changes to priority payments in insolvency are only made in exceptional circumstances. My colleagues may, for example, remember Bill C-228, which elevated the claims in insolvency for amounts owing to pensioners, who in some unfortunate cases have seen reductions in their pensions and retirement benefits due to the insolvency of their employers.

Bill C-280 creates a deemed trust for the claims of fresh produce sellers. A deemed trust is an extraordinary legal tool that, when used, makes the proceeds of a sale the property of the seller and not the buyer. Even if the seller is not yet paid, in an insolvency the deemed trust would let sellers recover amounts ahead of all creditors and outside of the insolvency process. This is a much stronger legal tool than is currently enjoyed by any other private commercial creditor group in insolvency.

First, the deemed trust would apply to the entire fresh produce supply chain. This means marketers, intermediaries and wholesalers of fresh produce who are engaging in everyday business transactions, just like every other supplier or wholesaler of other goods to the bankrupt purchaser. I note that this could also include multinational grocery corporations that wholesale fresh produce to their affiliates and large American sellers selling into Canada.

Second, it would apply to all the assets of the company, not just the inventory.

Third, whereas the existing protections for farmers apply only to produce from Canadian farms, American and other international fresh produce farmers and suppliers participating in a Canadian insolvency would benefit under Bill C-280.

Pension ProtectionStatements By Members

April 19th, 2023 / 2:05 p.m.
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Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Mr. Speaker, I am very pleased to rise today and announce the passing in the Senate of my second private member's bill, Bill C-228, on pension protection.

This bill will ensure that pensioners who have worked their whole lives for a company will receive the pension benefit they are due. This is accomplished by providing transparency to know which funds are insolvent, providing a mechanism to transfer funds to make them solvent and, in the case of bankruptcy, putting pensions in priority ahead of creditors.

There have been many members of all parties in the House and the Senate who have been trying to pass such a bill for two decades. I want to thank all of my colleagues for their help with this. This is a great day for Canadian pensioners. No longer will we see companies go out of business and leave those who have worked hard their whole lives without any pension or with only part of a pension.

Thanks go to everyone in the House and the Senate who supported the bill. It is a great day for Canadian pensioners.

Speaker's RulingRequest for Emergency DebateRoutine Proceedings

January 30th, 2023 / 3:40 p.m.
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NDP

Peter Julian NDP New Westminster—Burnaby, BC

Happy new year, Mr. Speaker.

Today, I would like to raise a point of order regarding an amendment to Bill C-21, an act to amend certain acts and to make certain consequential amendments (firearms). As stated on page 770 of House of Commons Procedure and Practice, third edition, “An amendment to a bill that was referred to a committee after second reading is out of order if it is beyond the scope and principle of the bill.”

The amendment in question, G-4, would amend clause 1 of Bill C-21, and the New Democrats have been clear in expressing our opposition to this amendment. The amendment seems to target those who use guns for hunting, for protecting farm animals from predators and for supporting safety in the backcountry. What is more, we have all heard from indigenous people that the amendments would not respect treaty rights nor the duty to consult.

Bill C-21 was originally intended to limit the number of handguns on our streets. Before the amendment was introduced, there was every reason to believe that Bill C-21 was on track to passing through this House before Christmas, but instead, the amendment was introduced at the eleventh hour with no ability to question witnesses about its impacts. It is a more than 200-page amendment to what was originally a 44-page bill. In our view, that constitutes an abuse of process. We are not asking the Speaker to judge the merits of the amendment. Instead, we are bringing forward a very important procedural point.

We believe, contrary to the committee's findings, that this amendment seeks to expand the scope of the bill as established at second reading since it addresses a new idea that was not considered at second reading.

The amendment is out of scope because the original Bill C-21 was meant to implement a handgun freeze. This amendment would drastically expand the definition of “prohibited firearm” in the Criminal Code to cover all sorts of long guns, including those commonly used for hunting and farming and by indigenous communities. This House never had a chance to debate this measure at second reading.

When the amendment was moved on November 22, 2022, the committee chair deemed that it was not beyond the scope of the bill. This decision was appealed, and the committee voted in favour of the committee chair's decision.

However, as we saw in the very clear Speaker's ruling on November 16, 2022, regarding amendments to Bill C-228, the ultimate decision on the scope of a bill rests with the House itself: “The Chair would like to remind members that the scope of a bill is not determined by its sponsor, by the government or even by the committee considering it, but by the House itself when it adopts the bill at second reading.”

In this situation, the committee adopted amendments that the Chair ultimately struck from the bill during consideration at report stage, because you, Mr. Speaker, ruled that the amendments were beyond the scope of Bill C‑228 as passed by the House at second reading. Although we realize that the Speaker usually does not rule on a matter that is still being debated in committee, we believe that in this particular situation your opinion is necessary and important.

The committee has been stuck for weeks debating this amendment, which is, in our opinion, out of the scope of the bill. It is possible that you would rule the amendment out of order at report stage, which would make the hours of debate at committee completely unnecessary. It would be in the interest of all parliamentarians to avoid the waste of time and energy spent debating an amendment that would ultimately be removed from the bill.

November 30th, 2022 / 4:30 p.m.
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Liberal

The Chair Liberal Peter Fonseca

I call this meeting to order. Welcome to meeting 70 of the House of Commons Standing Committee on Finance.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Wednesday, November 16, 2022, the committee is meeting to proceed with the clause-by-clause consideration of Bill C-32, an act to implement certain provisions of the fall economic statement tabled in Parliament on November 3, 2022 and certain provisions of the budget tabled in Parliament on April 7, 2022.

Today's meeting is taking place in a hybrid format, pursuant to the House order of June 23, 2022. Members are attending in person in the room and remotely using the Zoom application.

I would like to make a few comments for the benefit of the witnesses and the members.

Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your microphone, and please mute yourself when you are not speaking.

There is interpretation for those on Zoom. You have the choice at the bottom of your screen of either floor, English or French audio. For those in the room, you can use the earpiece and select the desired channel.

I remind everyone that all comments should be addressed through the chair. For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as well as we can. We appreciate your patience and understanding in this regard.

Members, before we go to clause-by-clause consideration of Bill C-32, you will have received the budget for the Bill C-228 study from the clerk on Tuesday. Everybody should have received it at 11:03 a.m.

I'm looking around for confirmation that everybody is good with that budget.

The House resumed from November 22 consideration of the motion that Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985, be read the third time and passed.

PensionsOral Questions

November 23rd, 2022 / 2:50 p.m.
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Papineau Québec

Liberal

Justin Trudeau LiberalPrime Minister

Mr. Speaker, we have always been there to protect pensioners and workers, unlike Conservative politicians, who continue to push for CPP and EI cuts. We will support Bill C-228, but we will take no lessons from a Conservative Party that waged war on labour for a decade and has nothing to offer Canadians but Bitcoin and buzzwords.

Pension Protection ActPrivate Members' Business

November 22nd, 2022 / 6:40 p.m.
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Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Madam Speaker, it is a pleasure to be here at this, the final reading of this bill, before the vote tomorrow and hopefully the bill's going on to the Senate.

It has been a long journey. Over the last at least 10 years, possibly longer, there have been numerous efforts to bring forward bills to get the pension protection Canadians deserve.

Basically, when I looked at the work that had been done, in every one of them there was something that not everyone could agree on, so I cherry-picked from all the different ideas that people could agree on and said, “Let us at least do something. Let us move in the direction of good.”

That is how Bill C-228 came into being. Previously, there was a bill, Bill C-253 in the last parliamentary session, which made it to the industry committee. It was on the priority of pensions.

This bill would do three things.

It would table a report in the House on the solvency of pension funds, so we can have greater transparency and know which funds are in trouble.

It would create a mechanism for us to transfer funds into an insolvent fund from elsewhere in the business, with no tax implication, so we can fix the problem before it becomes a difficulty for the pensioner.

Then, in the event of a bankruptcy, we would pay out pensions in priority over secured creditors like large banks, preferred creditors, and unsecured creditors. That will put pensioners in a much better position. Pension funds will be solvent, in general, and when there is a bankruptcy, large creditors are way more likely to be able to survive one company's going bankrupt than an individual who has paid into their pension and is counting on it for their retirement.

The bill has had much study. It has heard input from all kinds of stakeholders, and we are here today with what I think is a really good balance of all the rights of the pensioners and those of the suppliers. I think we have a very acceptable balance.

I want to thank a number of people, the member for Elmwood—Transcona, the member for Manicouagan and the member for Joliette, as well as all the finance committee members. There have been numerous people who have helped this bill along, provided their input and provided suggestions to improve it. I want to thank the member for La Prairie, who traded his private member's spot for today in order to move this up quickly and get it over to the Senate.

It just shows that there is broad support for the bill. When we look at the concerns that were raised about the bill, there was one amendment that was made at committee to include severance pay and termination pay in the priority. I supported that. I said I supported it at second reading, but it was ruled out of scope by the Chair and eventually back in the House, where the Liberals wanted the Speaker to rule on it. I think the Speaker was correct in saying that committees do not have the power to put things in that are out of scope, but then we brought a unanimous consent motion.

The member for Elmwood—Transcona brought the motion to have the House decide to put that amendment back in. Unfortunately, at that point, the Liberals did not support that amendment, and the motion did not receive unanimous consent.

That amendment is now out of the bill. That was the controversial part. I think we can agree that the rest is the right thing to do for Canadians.

I am happy to hear the parliamentary secretary to the government House leader say tonight that he has not yet made his decision on how he is going to vote. I would encourage him to vote yes to Bill C-228.

Now is the time, in this parliamentary session, for us, after 10 years of bringing various and sundry bills, to finally do the right thing for Canadians and protect people who have worked their whole lives and paid into a pension fund. It is time to give it the priority it needs to have.

I look forward to the vote tomorrow, and I look forward to having all parties in the House support Bill C-228.

Pension Protection ActPrivate Members' Business

November 22nd, 2022 / 6:35 p.m.
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Conservative

Kelly Block Conservative Carlton Trail—Eagle Creek, SK

Madam Speaker, I am pleased to rise and speak to my colleague's bill, Bill C-228. I would like to thank the member for Sarnia—Lambton for introducing this bill and providing me with the opportunity to participate in this debate.

This bill comes at an important time for Canadians. Bill C-228 seeks to protect the pensions of workers in the private sector so that when a company goes bankrupt, pensioners receive the benefits they have worked long and hard to receive. It combines elements from previously introduced bills and would do three things. First, it would require that an annual report on the solvency of pension funds be tabled in the House of Commons. Second, it would provide mechanisms for companies to transfer funds to keep their pension funds solvent. Third, in the event that a company does go bankrupt, pensions would be paid out ahead of large creditors and executive bonuses.

For better clarity, not only does the bill seek to ensure that pension funds remain solvent by requiring annual reporting that demonstrates the pension funds are fully funded, but it would protect Canadian workers' pensions, as it creates mechanisms to help companies keep their pension plans solvent. Should a company's pension fund become insolvent, they will be able to transfer money into the pension fund without any tax implications. Encouraging companies to keep their pension funds solvent and providing them mechanisms that help them to achieve that is something that ultimately helps and protects working Canadians.

The solvency of pension funds is especially important now, as we are in a cost of living crisis. Seniors in particular are struggling at this time, as they live on fixed incomes that are being stretched by rising prices and inflation, which the government is fuelling with its inflationary spending. The government continues to deny the consequences of its inflationary spending, but we are confronted by them daily.

Canadians call me every day asking how the government expects them to keep up with the rising prices that are being caused by the government's out-of-control spending. The government has created an unpredictable economy with record-high inflation. Now, with its plan to triple the carbon tax, Canadians living on fixed incomes are being pushed to their limits.

With the unpredictability of the economy, record high inflation rates and the Liberal plan to raise taxes, the protection of pensions is vital. Canadians need to be secure in the knowledge that their pensions, which they have contributed to for many years, will not be at risk of disappearing overnight.

As inflation continues to rise, those who rely on pensions from the private sector are more vulnerable. They have to worry not only about their monthly payments being stretched thinner and thinner, but also that the company paying their pension may go bankrupt and use the pension fund to pay off its debts.

Over the past two years, we know that many businesses have struggled, many have not survived and many may be on the verge of making the decision to close their doors. Should this happen, many people may find their pensions at risk. Pensioners should not have to worry about the security of their pension. The dream of retiring for Canadians should not be washed away because the pension fund of their company was used to pay off debts and give bonuses to executives.

That is why our party believes that pension plans should be invested by independent trustees for the benefit of employees and should be held at arm's length, not accessible by a company or its creditors. By doing this, the pension fund will be solely focused on serving the workers who are contributing to it and drawing pensions out of it, and we will remove the ability for corporations to interfere with pension funds or cause them to become insolvent.

Another important aspect of this bill, supported by the independence of pension funds, is that in the event of bankruptcy, paying out pensions would become a priority, ensuring that seniors are not left behind. This will ensure that the many years of hard work by Canadian workers will still be rewarded with the pensions they have earned. It will also ensure that even in the case of bankruptcy, the dream of retirement will not be lost. Canadians will still be able to depend on the investments they have made in their companies' pension funds and plan for the future.

I am sure many of my colleagues in this place have heard from Canadians that they are finding it difficult to plan for their future when there is so much uncertainty due to the Liberals' inflation and the rising taxes.

This bill provides an opportunity for members to vote in favour of giving Canadians security in their golden years, allowing them to retire and enjoy the fruits of their labour.

The purpose of this bill is very clear. We want to protect the pensions of hard-working Canadians. The bill seeks to bring more stability to private pension funds and ensure that Canadians do not lose out. It is a step towards giving Canadians more certainty and control over their own lives and hard-earned money, making sure the money they have earned ends up in their own pockets.

I know similar bills have been introduced in the House previously, and I am happy to see that Bill C-228 has had broad support among other parties. Again, I want to thank my hon. colleague from Sarnia—Lambton and hope to see more initiatives in the House to help support Canadians.

Pension Protection ActPrivate Members' Business

November 22nd, 2022 / 6:15 p.m.
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Bloc

Louise Chabot Bloc Thérèse-De Blainville, QC

Madam Speaker, many expressive words come to mind as I rise to speak to Bill C‑228 today in the House, a few hours before voting at third reading. My words are “privilege”, “honour” and “pride”.

Why? As parliamentarians we play a part in history. We have the opportunity to do something historic, namely to correct an injustice that has existed for far too many years by protecting retirement funds, the nest eggs of workers and retirees, in the event of a bankruptcy.

I do not think there should be any hesitation tomorrow when it comes time to vote. We should all stand up unanimously in the House to tell all workers and the unions that have been lobbying for years to convince parliamentarians to remedy this situation that we will finally do them justice. That is my plea today.

I would also like to commend the Conservative member for Sarnia—Lambton and thank her for her bill and for the work that was done on it across party lines with the NDP and my colleague from Manicouagan. It is really something when we are able to work together to advance the rights of workers. I really encourage the Liberals to join us. I heard the parliamentary secretary say in his speech earlier that he was still undecided about tomorrow's vote. What is there to be undecided about? There should be no hesitation on this issue.

If even just one company were to go bankrupt today, the human suffering would be terrible. A company going bankrupt results in job losses, relocations, unemployment and complete reorganization. When, on top of that, a company puts itself under creditor protection and pension plans are insolvent or have not been properly funded, retirees are faced with enormous losses to their pensions.

Consider the Cliffs mine on the north shore, or Nortel, or Aveos. There are situations like these—and this is a long list—where workers and retirees have seen all the savings they socked away during their working years melt away like snow on a sunny day.

We must remember one fundamental thing. Retirement is a deferred salary, compensation that is deferred until retirement. When a company goes bankrupt and that fund is unprotected, thousands of workers are put at risk. This concerns many workers in Canada.

I also really want to commend all the work done by my colleague, the member for Manicouagan. When Cliffs' mine on the north shore went bankrupt, she went to bat, took a stand and worked hard to introduce a bill that would protect pensioners and to ensure that this never happens again. There was one hour of debate, but at least there was debate, because, at the time, the government was against this idea. It made people aware of the fact that this should never happen again. Since then, there have been many such bills, but not one of them has passed and actually fixed the problem.

The latest bill on this subject was introduced by my colleague from Manicouagan in 2021. It was Bill C‑372, which passed at second reading and received the committee's unanimous approval. Unfortunately, it died on the Order Paper because a pointless election was called.

I said the passage of this bill would be a historic event. Fortunately, battles for pension funds are already being waged in the context of collective bargaining for unionized workers. This often causes conflict, because employers would like to make cuts to pension funds.

How many battles, strikes and disputes have hinged not only on pay, but also on pension funds? This is a difficult struggle for workers. Some workers have been left to fend for themselves after giving a company 30 or 40 years of their lives and contributing to a retirement fund. This kind of thing happens because we have never been aware of their reality or done enough to take a stand and fix the problem.

We have an important role to play as parliamentarians, because it is up to elected officials and the government to change things and bring in a safety net for our workers. The purpose of this bill is not to make pension plans priority creditors, but rather preferred creditors. The status of preferred creditor for wages is currently maintained in the event of bankruptcy.

I really must emphasize that there is no reason to hesitate. I often hear the Liberals say here in the House that they are there for the workers, that they will never let them down and that they want to protect their pension funds. Well, now is the time to walk the talk. Beyond the rhetoric, if they really want to protect workers, it is important to strengthen labour rights and protect pension funds in the event of insolvency or bankruptcy. That is what needs to be done. This should not even be a question.

It is also important to pass anti-scab legislation. Workers have been calling for this for years. It should have been brought in years ago. Labour disputes persist because, once again, employers under federal jurisdiction take advantage of the current situation to hire scabs, and this keeps the disputes going. One day, we are going to have to stand up for workers on this issue as well. It is time to stop consulting and start taking action.

Employment Insurance also needs to be reformed. The Canadian Labour Congress, the United Steelworkers and major labour organizations regularly come to the Hill to lobby to talk to parliamentarians about the reality of the working world today and to convince them to fix the situation. I do not even understand why the government is still dragging its feet on this.

The bill to protect retirement funds seeks to provide a guarantee in the event of misfortune such as an economic crisis, a recession or even a pandemic. In such situations, there are losses. In the case of Cliffs Natural Resources, even though the United Steelworkers managed to get a bit of money to the North Shore through legal means, pensions were still slashed by 9%.

A worker or retiree who is currently 80 is not going to go back to work. They end up using all of their savings just to survive. We cannot leave a single person in such a situation.

Canada is known for protecting basic rights and workers rights in the event of a bankruptcy. We have to protect their nest egg. I think it will be to our credit to adopt this bill unanimously. I want to acknowledge all the unions and every parliamentarian who decided to stand up and make this possible.

The House resumed from November 18 consideration of the motion that Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985, be read the third time and passed.

Pension Protection ActPrivate Members' Business

November 18th, 2022 / 2:20 p.m.
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Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Madam Speaker, it is a pleasure to be here, or least to be with the House virtually. It is always an honour to rise on behalf of the good people of Central Okanagan—Similkameen—Nicola.

I would like to thank the member for Sarnia—Lambton for her leadership in this Parliament on this issue. God knows we need these issues brought up because, in some cases, the issue around pension reform and the need to resolve it is long standing and has happened over periods, not just of governments, but of decades.

We have two issues in this particular space when it relates to pensions. One is legacy pensions, which is broadly what we are dealing with today. The other one is new ones, meaning that fewer companies are deciding to use the standard defined benefit pension plan. I am just going to take a quick moment to share a few reasons why that is.

Obviously the business environment has changed. Technologies have come in. We have seen new business models operating that challenge the status quo and have created all sorts of issues for legacy businesses as technology continues to change things.

The government tried to deal with this by bringing in Bill C-27 in its first mandate, but that particular bill went nowhere because the government probably did not do its homework and got hung up over one particular area that people were contesting around conversion, the conversion of a defined benefit to a target pension plan.

The reason why I raise this issue is because the government has failed when it comes to addressing both legacy issues, as well as trying to invoke new methods for bringing in benefits, whether they be a target-based benefit or a defined benefit. If we want to see more people having secure retirements, then that is part of the solution. I do not think the government has done a very good job, which brings me back to legacy issues.

Defined benefit pensions, those are usually handled, most of the time, by the companies themselves. There is no legislation that says that when they are in a surplus position, who actually owns that. Is it the actual company or is it the pensioners or the current workers? That problem, unfortunately, does not happen that often because it is very seldom that these particular private, defined benefits are running at a surplus. In fact, it is the opposite.

We have seen cases such as Sears. I represent a riding that has a large percentage of seniors. They rely on that income. It breaks one's heart when one finds out that they are no longer going to be receiving the benefit they paid into.

There has been inaction on this by the Liberal government since it came into office, but I would not put it all on them. If we just look to those who are fortunate enough to have a pension program, and it is usually in the public sector, the answer has already been given by successive governments over the decades. If there is a shortfall, the taxpayer will fill that gap. However, for these private pensions, that has not been answered.

Unfortunately, we have seen recessions. We have seen where stock markets have been hit hard, in the early 2000s, obviously in the financial crisis in 2008-09, and the subsequent great recession, and now we are looking at where there is a lot of talk about a possible recession. This is the worst time to be bringing these things up.

When these issues happen, when scarcity is abound, this is where everyone tightens up and demands to have what they are owed. The member for Sarnia—Lambton has been trying, struggling through the process of a private member's bill, working through committee, to put a new balance in place that would at least address this.

We do have the Office of the Superintendent of Financial Institutions. Bill C-27 that I referred to earlier did talk about having more rules and oversight in place that would force new target benefits to come up with plans to bring themselves back into a surplus position when there is a drop.

That is really important because joint-sponsored pension plans often have these things where they will, on a temporary basis, cut some secondary benefits to smooth things out, and once the plan comes back into balance, then the regular benefits continue. Those kinds of tools, where a pension plan can smooth out those outflows to make sure there is always a plan to get back into surplus, work. It has been shown in joint-sponsored plans, and it could work in defined benefit programs as well, but the government has a responsibility to start the discussion.

Unfortunately, the government seems to have taken the opinion that, if one touches it, one has basically bought it. It has, so far, decided not to enter into this space since its retreat from Bill C-27. Again, this country deserves better. It deserves to have both certainty for the existing legacy pension plans out there in the federal space and, I believe, an overall discussion on provincial plans. So far, when it comes to that kind of discussion, successive ministers of finance, whether it be former minister Morneau, who is the minister no more, as I like to joke once in a while, or the current Minister of Finance, they have not made this a priority. Thus, this is where members of Parliament need to fill the gap.

The superpriority, although it is an essential process that has been pointed out by the Canadian public, where they feel that if the government cannot put in place a framework that assures them of that, then, by goodness, they should receive superpriority in the Bankruptcy and Insolvency Act at the very end. It is an option that will have trade-offs in the corporate side, where it will make it in some cases harder for corporations to receive financing for their bonds. However, in the absence of better leadership by the government, members of Parliament have been forced to do this.

It is terrible that we have a government in office that votes down, or I should say denies, unanimous consent. Members of Parliament wanted to see the superpriority component of this bill included. For the Liberal government to continually say no and use whatever tools it can just shows the government is completely opposed to anything in this space. That is lamentable because ultimately it is Canadians who do not have an assured pension, such as public servants or most of us, if we are vested, do.

I would encourage the government to come clean. I would encourage Canadians to talk to their members of Parliament. Most of all, I would encourage the government to start taking this issue seriously, put forward consultations with both provincial governments and the Canadian public on how it intends to deal with legacy issues if it is not going to go forward with the Bill C-228 provisions presented by the good member for Sarnia—Lambton.

I appreciate the opportunity to speak today and wish all of my colleagues a good day.

Pension Protection ActPrivate Members' Business

November 18th, 2022 / 2 p.m.
See context

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Madam Speaker, I want to begin by informing the House that Quebec is currently in mourning. We just learned of the death of Jean Lapointe, a great writer, composer, performer, actor and comedian who was very involved in society.

On behalf of the Bloc Québécois, I want to extend my sincere condolences to his son, Jean-Marie, to his family, friends and loved ones, and to all Quebeckers. We will remember him for his comedy shows and his songs. He used to say that we learn to live through song. Many of his acting roles had a profound effect on me. Take, for example, his role in the series Duplessis, where he did an extraordinary job of playing “Le Chef”, his roles in various films by my favourite filmmaker Marc-André Forcier, and the role he played in Les ordres. We pay tribute to his memory, his political commitment and the rehabilitation centre that bears his name.

Farewell Jean Lapointe, and thank you.

Let us now talk about the important Bill C-228

We are at third reading of this bill in the House of Commons. That is amazing. I want to sincerely congratulate the hon. member for Sarnia—Lambton for her masterful sponsorship of this bill and for managing to build consensus around a common goal. In committee, members of all parties contributed to the bill, including people like the hon. member for Elmwood—Transcona, who participated in the work and helped improve the bill.

In the House this afternoon, we are beginning third reading of a bill that will make a difference in people's lives, in the lives of workers and especially of the retirees who are entitled to these pensions.

As everyone has acknowledged, there have been several instances in recent decades when companies declared bankruptcy and their defined benefit pension funds were underfunded. That had a devastating impact on the company's retirees. They could no longer collect their full pension because the pension fund they were entitled to was underfunded.

In life, in a market economy based on supply and demand and capitalism, there are risks and bankruptcies occur. If a worker sees his company close and declare bankruptcy, it is a difficult situation, but that person will try to find another job and get on with their life.

What happens to pensioners? As the member for Sarnia—Lambton was saying, what happens to people who are 70 or 75 years old and depend on their pension when they suddenly learn that the company is bankrupt? The company has failed to meet its obligations and pensioners will no longer receive their pension, which is often the minimum amount required to live well or to survive. Those pensioners will no longer receive the full amount. They might lose half of their pension, for example, but they are too old and do not have the energy or the strength to return to work. These are terrible situations, unspeakable human tragedies. That is what Bill C‑228 would fix.

It truly is an extremely important bill. I am very pleased that it has reached third reading stage. I look forward to it receiving royal assent and making a real difference in people's lives.

I also want to acknowledge all the hard work done by my colleague from Manicouagan who was especially invested in this bill. She had introduced a similar bill in a previous Parliament that did not make it through the House. She continued trying, working with the member for Sarnia—Lambton, to see Bill C-228 through the legislative process.

My colleague from Manicouagan has been working closely with union members representing the workers who have gone through this kind of human problem. It was really a good faith, goodwill approach. What can we do to better protect workers? We know that a pension plan is a form of deferred wages.

During the negotiation, the union and management decide on salary and the terms and conditions. A lower salary is accepted in exchange for entitlement to group insurance or more generous pension funds, for example. The pension is therefore a type of deferred salary, and workers are entitled to it. However, we know that under the law, a company can underfund their pension fund for several years and allow shareholders to make more money on the backs of workers because it is failing in its duty.

This bill would make pension funds a greater priority for creditor payment in the event of a bankruptcy. This would take some of the pressure off the shoulders of workers and retired workers and would improve things. As the member for Sudbury said, if this bill is passed, it will not solve every problem. There is no ironclad guarantee and not everything will be resolved. The risk will remain, but it will not be as high. What this bill does is give particular consideration to underfunded pension funds and give them higher priority for creditor payment in the event of a bankruptcy.

One thing we observed in committee and in studies of similar bills was that none of the experts who came to talk to us, including unions, said they should be the top priority. Both pensioners and union members told us they want to give the company a chance to restructure, refinance and come up with a plan to save itself from bankruptcy.

This bill gives mortgage holders priority over pension funds. Everyone recognizes that that is important, although the Liberal Party still seems unsure. Some of our Standing Committee on Finance colleagues are, anyway. I have had personal conversations with a few ministers. Judging from the Liberal member's speech on this bill, there still seems to be some confusion about this.

This is about giving pension funds higher priority while still enabling the company to restructure to avoid bankruptcy. That is what everyone here wants, obviously. That is a very important element.

Several cases have been mentioned, including Sears, Stelco, Nortel, Cliff Natural Resources and White Birch. In all of those cases, the pension plan was not fully funded when the company went bankrupt and the workers are the ones who got shortchanged.

As the Liberal member for Sudbury was saying, pension fund managers, large corporations, or the employer, came to see us to say that they did not really like this. Obviously, they do not like this because they will have to fully fund the pension plans and recognize that the amount owed to workers must be included in the financial statements and paid within a few years, with the necessary flexibility. In my opinion, we found a good balance, but it means less money for shareholders and less money for executives simply because they are being forced to pay what they owe.

The Liberal member who spoke before me did not mention that. Every time the employer or pension fund managers raised an argument, the seniors' advocacy organizations and unions responded clearly and simply by proving that the argument did not hold water.

Employers tried to scare people. The Liberal Party still brings that up, but every argument raised in committee was immediately refuted by parties representing pensioners' interests. Fear tactics are often employed when economic issues and other somewhat complex issues come up. In this case, I think the committee did a good job of rebutting fear-based arguments.

I feel absolutely confident about this bill, but it does not fix every problem pensioners face. There is still a degree of risk, but it is lower. Employers do not like this because they know they will make less money. That is true, but they have to pay what they owe, plain and simple.

In closing, I want to once again acknowledge the incredible work of the member for Sarnia—Lambton. As I said, I am the member for Joliette, and the Quebec MNA for Joliette was Véronique Hivon, a person who was all about cross-party collaboration and always tried to prioritize the common good over partisanship. She accomplished a lot in that respect, and the member for Sarnia—Lambton has accomplished just as much here. I thank her and congratulate her.