Canadian Labour Congress

Canadian Labour Congress

December 17, 2010 16:33 ET

Georgetti Calls on Finance Ministers to Oppose Flaherty on Pensions

Says Flaherty playing Santa to banks, Grinch to Canadians

OTTAWA, ONTARIO--(Marketwire - Dec. 17, 2010) - The President of the Canadian Labour Congress is calling on provincial and territorial finance ministers to deliver a Christmas gift to Canadians by opposing Jim Flaherty's efforts to ditch improvements to the Canada and Quebec Pension Plans in favour of a private sector solution that will benefit only the big banks. 

"Mr. Flaherty wants to play Santa Claus to the banks by handing over to them a gift-wrapped package of privately administered pension plans. This is bad idea and I am calling on the other finance ministers to oppose it. They should give a Christmas gift to Canadians and give Mr. Flaherty a lump of coal."

Georgetti was responding to Minister Flaherty's announcement on December 16 that he is moving away from his earlier commitment to enhance the CPP and QPP and will instead propose private retirement plans administered by the big banks and insurance companies. Flaherty will meet with provincial and territorial finance ministers in Kananaskis, Alberta on December 19-20.

"Flaherty wants to turn the retirement savings of Canadians over to the banks so they can charge obscenely high fees to manage that money. It was the greed and corruption of banks and financial institutions that wrecked our economy and gave us the Great Recession of the last two years. Now the minister wants to reward buccaneers by having them administer the hard earned savings of Canadians."

Georgetti adds that ministers, including Flaherty, agreed last June that they would work to improve the CPP. "They all know that the best way to ensure the retirement security of Canadians is to enhance the CPP. I am confident that the other ministers won't let Flaherty get away with this gift to the banks and insurance industry."

See how private sector management undercut the investment savings of Canadians: http://www.canadianlabour.ca/action-center/retirement-security-everyone/straight-talk-rrsp-and-mutual-fund-management-fees

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