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CAW-Canada (Spar Aerospace)

File Type: Pension
File Number: P0276-2006
File Name: CAW-Canada (Spar Aerospace)
Act: Pension Benefits Act
Plan Name: Spar Aerospace Limited Pension Plan for Employees Represented by CAW Local 112, Registration No. 549501 and Spar Aerospace Limited Pension Plan for Employees Represented by CAW Local 673, Registration No. 549519
Applicant: CAW-Canada and its Locals 112 and 673, Counsel: Lewis Gottheil
Respondent: Superintendent of Financial Services, Counsel: Mark Bailey
Party: Spar Aerospace Limited, Counsel: Markus Kremer, Borden Ladner Gervais LLP
Panel: Elizabeth Shilton, Chair; Colin McNairn, Shiraz Bharmal
Hearing Date Information: 11/13/2007-11/16/2007 (Hearing); 08/01/2007 (Pre-Hearing Conference continued); 05/24/2007 & 05/30/2007(Constitutional Hearing), 02/21/2007 (Pre-Hearing Conference continued); 12/11/2006 (Jurisdictional Hearing); 10/11/2006 (Pre-Hearing Conference)
Next Appearance Date: 11/13/2007
File Summary:
(Go to latest update)

On May 19, 2006, CAW-Canada and its Locals 112 and 673, (the "Applicant") filed a Notice of Appeal in respect of the position of the Superintendent of Financial Services (the "Superintendent"), evidenced by a letter dated April 26, 2006 from a pension officer in the Pension Plans Branch of the Financial Services Commission of Ontario to CAW-Canada, that the members of the Pension Plan for Employees Represented by CAW Local 112, Registration Number 0549501, and of the Pension Plan for Employees Represented by CAW Local 673, Registration Number 0549519 (the “Plans”) are subject to the requirements of the Pension Benefits Standards Act (Canada) and, therefore, that s.69 of the Pension Benefits Act would not apply to the members affected by the downsizing of employment at Spar Aerospace Limited affecting members of the Plans.

The Applicant has asked the Superintendent to order the partial wind up of the Plans, which are collectively bargained by the Applicant, on the basis of that downsizing and now requests, through the Notice of Appeal, that the Tribunal order the Superintendent to direct such partial wind up.

A pre-hearing conference is scheduled for October 11, 2006.

Updated to May 31, 2006

On September 27, 2006, an application for party status was filed by Spar Aerospace Limited.

Updated to October 6, 2006

At the pre-hearing conference Spar Aerospace Limited (“Spar”) sought party status only for the purpose of contesting the Tribunal’s jurisdiction to hold a hearing.  The Tribunal granted limited party status to Spar without prejudice to its right to seek broader party status at a later date.  A motion hearing is scheduled for December 11, 2006 to decide;

  • whether the Tribunal lacks jurisdiction to determine that the Plans are subject to provincial regulatory authority either because,

(i) the Office of the Superintendent of Financial Institutions (“OFSI”) has already decided the issue of regulatory authority in favour of that federal agency, or

(ii) the Pension Benefits Act does not entitle the Applicant to a hearing because the Superintendent has decided that he does not have jurisdiction over the Plans: 

  • if the Tribunal does not lack such jurisdiction, whether  it has a residual discretion to decline to hear the matter because OFSI has decided the matter of regulatory authority; and
  • if so, whether it should exercise that discretion. 

Updated to November 10, 2006

At the motion hearing on December 11, 2006, the Tribunal reserved its decision to at least January 5, 2007, to allow for any further applications for party status to be filed given the late notice of the hearing.  No such further applications have been received by the Tribunal.  The decision continues to be reserved.

Updated to January 10, 2007

In its Decision dated January 19, 2007, the Tribunal concluded that in the circumstances before it, the Pension Benefits Act entitles the CAW to a hearing and nothing that OFSI has already decided is a bar to the Tribunal proceeding to hear the CAW’s case.  The pre-hearing conference is scheduled to resume on February 21, 2007.

Updated to February 16, 2007

On February 21, 2007 the pre-hearing conference resumed at which time dates were scheduled for a hearing on the constitutional issue of whether the Plans are subject to provincial regulatory authority.  That hearing is scheduled for May 22, 24, 28, 29, 30 and June 7, 2007.

Updated to May 2, 2007

On May 18, 2007, the parties advised the Tribunal that only two days would be required for the hearing on the constitutional issue.  The evidence and arguments were heard by the Tribunal on May 24 and 30, 2007, respectively.  On June 12, 2007, the Tribunal issued its decision and reasons.  The Tribunal found that the Plans at issue in this case do not fall within federal jurisdiction.  It found that the Pension Benefits Act applies to the Plans and accordingly dismissed the preliminary constitutional objection to the Tribunal dealing with the merits of the CAW’s appeal.  A resumption of the pre-hearing conference is scheduled for August 1, 2007.

Updated to June 14, 2007

At a resumption of the pre-hearing conference on August 1, 2007, Spar advised that it was seeking full party status in respect of the remaining issues now that the Tribunal had determined it will hold a hearing on the merits of the wind up request.  The Tribunal granted full party status to Spar Aerospace Limited.  The hearing is scheduled for November 13 – 16, 2007.

Updated to August 20, 2007

On November 7, 2007, the parties advised that a settlement was reached in the matter and asked that the Tribunal confirm the settlement at the hearing.  On November 13, 2007, the Tribunal issued an Order confirming the settlement between the parties.

Updated to November 21, 2007

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