Time to improve the Canada Pension Plan
By norman.debono
Last Updated: November 30, 2010 12:00pm
 
Recent reports that small business owners fear a rise in the Canada Pension Plan really don’t make much sense.
The story, as reported, is that the Canadian Federation of Independent Business see a proposed increase in CPP premiums as an additional cost, the benefit of which will not be seen for decades in the form of increased buying power from retirees.
Fair enough, an additional 4.95 per cent " the increase proposed by the Canadian Labour Congress ” paid into pensions is certainly an added cost.
But the media reports fell well short of outlining the benefits such an increase brings not only to working people, but to business as well.
First, some background.
Now employees and employers each pay 4.95 per cent of earnings into the plan, hardly a king’s ransom.
But for that modest amount they get a pension that tops up at $10,000 annually, although the average worker gets about $6,000, and it is fully indexed ” rising as the cost of living rises. It is also fully transferable meaning if you change jobs, or move across the country,  you take it with you, unchanged, unlike workplace pensions.
The proposal, which has been supported by every provincial government except Alberta, and even gets a nod of approval from  the federal Conservative government, would see the premiums and benefits double. That increase in premiums is borne by both worker and employer equally.
The reason this is a good idea is really very simple, most Canadians are not retiring with a pension plan, and many pensions that do exist are are poor indeed and getting worse as inadequate defined contribution plans are becoming more popular with businesses and public institutions.
Consider for a moment that 33 per cent of families do not have a pension, and have not saved for one.
Complicating this is that while most men live to 78 years old and women to 83, on average, a majority of men suffer a life changing disability at 67 years old ” that is a heart attack, stroke, Alzheimer’s, you get the picture.
So, for many Canadians that means having a decent wage when they retire is not a luxury to finance that warm weather trip” it just may be to sustain life itself, and pay for needed care.
For more than half of the Canadian workers CPP is the only workplace pension they will get and it is deigned to replace only 25 per cent of working wages.
So, the benefit to workers is clear, fewer will retire in poverty because CPP is a good, well managed plan that is funded and the proposed increase is affordable, with a good return.
The fear that businesses will suffer is short sighted, and does not take into account a healthier CPP will greatly ease the burden on employer pension plans. That means pressure may ease to provide, or improve, workplace pensions for businesses both small and large, and that has been a huge cost to business.
Remember, it was retirement costs to former workers, not slumping sales and rich contracts, that almost bankrupt General Motors. Just this week we saw reports that pension costs are plunging academic institutions into debt.
We cannot allow this discussion to be sidetracked by red herring arguments, also made by the CFIB, that businesses are now burdened with EI premiums. Sure they are, and they have to pay rent, and the heating bill too. It’s the cost of doing business and has nothing to do with pensions. Which, by the way, are not a cost, but a savings.
An improved pension plan will be up for discussion in December at a meeting between the federal  government and provincial governments. Let’s hope they do the right thing, for workers as well as business, and beef up the Canada Pension Plan.

Help us build a huge global campaign in support of Nestle workers

For more than 3 years, Nestlé has been violating basic trade union rights at its Nescafé factory in Panjang, Indonesia.

SBNIP, recognized for ten years as the union representing workers, has sought to exercise the basic right to negotiate the terms and conditions of employment.

The company's response was to harass union members, transfer them, and place them under video surveillance.

When intimidation failed, the company created a fake union and now insists that it must be part of any negotiations.

Enough is enough.

The IUF - the global union federation representing food workers - has just launched a major online campaign that aims to deliver thousands of message of protest to  Nestlé.

The message is a simple one:

Stop pressuring your workers - and start talking to them.

Please take a moment to send off your message now -- and forward this email on to others so we can build this into a huge campaign.

Thank you.

Eric Lee

Saturday - People's Assembly for Climate Justice
London CoC Supporters,

The next major round of UN climate negotiations will be held in Cancun Nov. 29 to December 10. The last one in Copenhagen failed miserably.

Why wait for governments to take action? Join a People’s Assembly and help make climate justice a reality. People’s Assemblies are movement-building and organizing events. The focus is on dialogue and transforming awareness into action through community-based climate justice actions.

Citizens in 14 Canadian cities are meeting this week in similar Assemblies. Join us in figuring out what we can do, here in London.

1:00pm: Sean Hurley (long-time environmental activist); and Cory Morningstar (from Canadians for Action on Climate Change)
1:30pm to 4pm: Community dialogue about how to turn awareness into action through collective action and community collaboration, right here in London.
(During a break, refreshments will be provided free of charge)
 
WHERE - Black Shire Pub -- 511 Talbot (upstairs), London, Ontario [see map]


Endorsing Organizations: ReForest London, People for Peace, Climate Justice London, Thames Regional Ecological Association, Waste Free World, Post-Carbon London, Common Cause, Iconoclast Media, The Circle Women’s Centre, Canadians for Action on Climate Change

This event is being organized by an ad hoc group of local activists.

A few of the event organizers can be reached at climate.justice.london@gmail.com


The London event poster can be downloaded from here -
http://theory.edublogs.org/files/2010/11/PeoplesAssemblyPosterNew-1qwh3gd.pdf

The Facebook page for this event is here - http://www.facebook.com/event.php?eid=144968368886508


You can learn more about assemblies in different provinces at http://canadians.org/assemblies
A video and a map of events are posted there.


Regrettably, the event space in London is not wheelchair accessible.

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Visit the Council of Canadians | London Chapter websites:
http://councilofcanadianslondon.wordpress.com
http://drivethrulies.wordpress.com