The symbolism of Canadian companies ignoring their workers as they slowly slip into bankruptcy while the executives skulk away with million dollar bonuses has become all to common in North American, says an NDP MP.

“Look at U.S. Steel in Hamilton, Air Canada, AIG,” said Wayne Marston, Hamilton East-Stoney Creek NDP MP. “It shows it is okay to lose the workers’ money.”

So Mr. Marston decided to do something about it after listening to the desperate stories from workers and seniors losing their pensions, with some seniors ending up homeless, and living on Canadian streets.

In rare show of unity, the House of Commons this week approved Mr. Marston’s motion to will take back $7 million in bonuses given to Canadian Pension Plan executives even though they lost millions of dollars of pension money.

He said the CPP Investment, a crown corporation, lost $23.7 billion, equaling the contribution of workers over a four-year period. The four executives, though, saw their base salary increase from $1.47 million to $9.3 million, according to the CPP annual report.

“To the average guy in the street, they know this is wrong,” said Mr. Marston in an interview.

“This is a cultural problem. (The motion) is a dramatic signal this has got to stop.”

Although the motion is really focused on establishing a proper mechanism to protect workers’ pensions, the idea that executives are benefiting while losing hard-earn employees cash in an economic crisis remains unnerving to people, said Mr. Marston.

“I didn’t even know (the motion) would pass,” he said. “We are thrilled. Very, very excited.”
 

The motion, which was unanimously approved by all parties, demands the government create a better retirement savings system for Canadians. Mr. Marston said the average retired Canadian receives about $1,200 per month.

The motion also urges the government to create a self-financing pension insurance program, and craft a system where workers’ pension funds are paid by creditors first in the event of a bankruptcy process. He points out other items are insured such deposits and homes, why not pensions?

“The whole purpose is to focus a national debate on this issue,” said Mr. Wayne, who is also the party’s seniors’ critic.

He says if only a portion of the cuts the Conservatives delivered through lower corporation taxes and reducing the GST – about $1 billion – was used instead to help seniors, there would be no more poverty for them.

The next steps for the motion will be debating the issue at the Parliamentary committee level, and watching that the Conservative government follows through on protecting pensions and seniors, he said. It could take a few years to finally get the legislation is implemented, said Mr. Marston.

“We have to make sure (the Conservative government) do their due diligence,” said Mr. Marston. “We want to make sure it stays on the radar.”