LEGAL BATTLE OVER BENEFITS

Jan 16, 2014

By Bob Komsic

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The Supreme Court of Canada has ruled a retired worker can launch a class-action suit against his former employer for changing its health-benefits plan for retirees.

Before it was bought by Vivendi, Seagram set up a plan that covered employees while they worked for the company and after they retired.

Seagram changed the plan in the mid 1980’s, adding a footnote that was not in the original 1977 plan.

The change indicated the company reserved the right to change or suspend the plan or increase the amount paid by employees and retirees.

In 2008, new owner Vivendi announced it would raise the plan’s annual deductible, cover only certain prescription drugs and set a lifetime total of $15-thousand for all coverage.

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