Ontario tries to reassure protesting GM pensioners

JENNA-LEE MAINSE/NEWSDURHAMREGION.COM

GM retirees and current workers protest at Queen's Park, demanding the Ontario government guarantee pensions for the auto company. (April 23, 2009)

THE CANADIAN PRESS

Ontario says the pensioners rallying at the provincial legislature today have little to fear unless General Motors is forced to sell off all of its assets under bankruptcy.

Thousands of retired autoworkers are descending on the legislature to demand pension protection for seniors.

Economic Development Minister Michael Bryant says the safety of autoworkers' pensions would only become an issue in the "extreme circumstance" of liquidation.

Bryant says he's confident things won't get that bad, and adds the companies, government and union are all working to ensure GM and Chrysler stay afloat.

The rally is the last of a series instigated when Premier Dalton McGuinty said there wasn't enough money in the province's safety net to cover GM pensions if the company goes under.

Even in the event of a bankruptcy filing, Bryant says no Canadian judge has ever required pensioners to abandon their pensions.

But he wouldn't say whether retirement incomes would remain at current levels or have to be reduced.

Bryant says he can't predict what portion of their pensions retired autoworkers will get if GM goes bankrupt, because that has up to management and labour to figure out.

Ontario's Pension Benefits Guarantee Fund provides pensioners with up to $1,000 a month in the event a pension plan fails to provide its full benefit, or any at all. It is funded by corporate contributions, and the government has no legal obligation to top it up.

It currently holds about $100 million, while pension experts estimate GM's pension shortfall could top $6 billion.

More videos from Wheels.ca and our partners