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Canadian National Railway Company Message Board

  • smokedlobster smokedlobster Jun 11, 2012 7:08 PM Flag

    Another Mongeau Moment

    (Financial Post, May 31) Claude Mongeau says it is unlikely Canadian National Railway would ever face the sort of battle over pensions its smaller rival Canadian Pacific Railway faces. Mr. Mongeau says: "We don't bargain for pensions at the table. ... When we get requests to bargain for pensions at the table, it's a flat 'no' because it's too important."

    He says any changes to the plan are made by a pension committee, constituted of representatives from the company, its unions and its pensioners. While the plan allows for a guaranteed level of payout upon retirement, it also allows for benefits to be increased through an escalation account when times are good and pulled back when they are not. So, if the plan is generating funds in excess of the actuarial assumptions that protect the integrity of the plan, CN can decide with its workers and pensioners how those gains are shared. If there are none available, then the improvements are reduced accordingly.

    Mr. Mongeau says: "I can't take credit for that one. The design of the pension plan goes back to the late 1970s."

    ....But he sure sounds like a guy who very much
    enjoys wallowing in the legacy of it, and bragging about how CN has such strong principles regarding it!?!

    Here's where all the much deservec credit SHOULD go:

    (Feb. 4, 2008) The president and chief executive officer, Tullio Cedraschi, of the CN Investment Division has retired.

    He joined the division as a financial analyst 40 years ago and was appointed president and CEO in November 1977.

    “Tullio has been one of the most successful pension fund managers in Canada,” says David G. A. McLean, chairman of the board at CN Rail. “Under his leadership, the division that manages the pension fund assets of CN generated consistently superior returns over the years, benefiting thousands of pensioned and current employees.”

    Cedarshi was a pension rock star. But again, similar to the level of 'respect' he has for Harrison, Mongeau didn't even bother or see fit to even mention Cedrashi by name.....the guy who singlehandedly left CN with such an immense advantage over all its competitors in employee pensions, in an industry where labour is a full 50% of the entire cost structure. Well done, Claude. Another CEO turd sandwich.

53.94+0.59(+1.11%)Feb 8 4:02 PMEST