Navistar Bargaining Update

Class Action Suit

You will recall that in November 2012 and January 2013, a Company motion to dismiss the proposed class action law suit for severance pay and other compensation was heard by the Superior Court of Justice. The Court has just delivered its decision. The Court has granted the Company motion and stopped and dismissed  the proposed class action proceedings. This ruling is clearly disappointing. The proposed plaintiffs intend to appeal.  Legal counsel will draft a notice of appeal forthwith.  Please continue to check this website for further updates as this matter unfolds.
To see a copy of the full decision , please click here.

Information Update May 8, 2013

Greetings,

I have received some information relative to Navistar's objective of putting in place a demotion plan for the facility.  The facts are they have sent out tenders to do just that, but the municipality has yet to approve any permits which would be required, if and when Navistar makes that decision.   Anxieties seem to creep in when there is any activity around Navistar but our reality is our grievances against this rotten, uncompassionate company will get resolved one way or another whether the building ultimately gets demolished or not. 

In fact, that is prime industrial land and the quicker Navistar deals with it, the quicker the economic development commission of Chatham/Kent can start advocating to utilize it.  I would think that property and its potential utilization is seen by the municipality as a future economic opportunity versus accepting the status quo.

In the meantime, our fight with Navistar continues to be on two fronts.  Pension eligibility and pension windup decisions are within the regulatory process of the Financial Service Commission of Ontario (FSCO), where we were successful in winning our initial arguments only to have Navistar appeal them.  We remain confident that our arguments were sound and the initial decision of FSCO will be validated through the adjudication process. 

The CAW shares the frustrations expressed by our members because there is no clear date in which this argument will be resolved.  The second argument expressed by the CAW in relationship to severance entitlement is being pursued through the Courts and we are presently waiting for a decision to be made whether we can continue to pursue justice through the court or be forced to deal with it through the Ontario Labour Relations Act which is Navistar's preferred and stated position.

Through this painful, costly and frustrating process, we must reinforce with the provincial government to modernize the Labour Relations Act where the needs of workers and the community are of priority importance versus the interest of companies who freely abandoned their employees and communities who have historically jumped through hoops in support of industry.

I remind everybody, demolishing the plant is not a crisis.  It may bring closure from all the rumours that circulate from time to time whether Navistar will reopen and manufacture again but there is no sense in that happening so all our energies must be focused on representing our members' needs on pension eligibility and, of course, severance entitlement.  Justice is possible if we stay focused and that is exactly what I asked our representatives to do both at the local and national level. 

The CAW extends our appreciation to the members of Locals 127 and 35 for their patience and understanding in these matters.  Navistar has opposed justice at every legal opportunity possible and that is why we need to emphasize legislative changes that actually protect workers and communities versus corporations who have no conscience or care for those that delivered the goods and the profits that were generated as a result of a high quality, high productive workforce.  

Thank you. 

Ken Lewenza

Navistar Assistance Update April 30, 2013

Please be advised that Cathy Wiebenga is continuing her efforts and will be at the Local 127 hall in attempts to answer member's questions on the following date:

Wednesday  May 8th from 9 am to 4 pm

Future dates will be based on a month to month basis

Update on the Pension matters

Please click here to see the notification from FSCO, it is a notice of a prehearing conference meeting scheduled for June 20 2013 at the FSCO offices in Toronto, ON.  We will continue to update the membership on these matters as they become available

Pension-CAW Response to FSCO Tribunal

Please click here to see the CAW response concerning te pension matters before the FSCO Tribunal

Navistar- US Class Action Suit

Readers of this page are likely aware that Navistar International Corporation, the parent company of Navistar International Corporation Canada is the subject of a class action law suit launched in the state of Illinois, U.S.A.  The law suit alleges that the company issued materially false and misleading statements about the company's financial condition and future prospects.  The law suit is at a very preliminary, early stage.

The CAW-Canada will monitor the progress, if any, of the lawsuit.  It is the Union's view that, at this time, the lawsuit has no material impact on the pension issues or recovery we continue to fight for on behalf of CAW-Canada represented employees and/or retirees in the Chatham area.

Navistar's Submission for Appeal

Below you will find the Navistar Corporations full document submitted for their appeal to FSCO concerning the pension issue.

Navistar Corporation Appeal Document

Navistar Assistance Update April 4, 2013

Please be advised that Cathy Wiebenga is continuing her efforts and will be at the Local 127 hall in attempts to answer member's questions on the following date:

Tuesday April 9th from 9 am to 4:30 pm

Future dates will be based on a month to month basis
 

April 3, 2013 Navistar - Pension Appeal

As was previously reported the decision from FSCO concerning the four outstanding matters on the pension plan was subject to appeal by either party.  This decision by FSCO outlined in very clear terms that, with respect to the outstanding matters regarding the pension, the positions adopted by the CAW and presented to FSCO and Navistar correctly represented the interpretation and application of the law in Ontario, and further that Navistar's positions have no basis in current Ontario law.

The CAW was notified by Navistar that they intend to appeal the decision by the Superintendent of Pensions. Navistar is challenging an interpretation of Ontario law that has stood for decades and that other employers in Ontario recognize and abide by.  Navistar through this appeal is seeking to slash the partial wind up pension benefits that Ontario law provides to workers who have lost their job because of Navistar's actions. 

The CAW will now prepare for a tribunal hearing and remains absolutely committed to once again defend our members.  The panel will consist of a Chairperson and 2 Sidepersons, one of which will be a representative of employee/plan member interests.  In the past tribunal cases the employee/plan member was from labour.    A prehearing conference should occur within three months. We can anticipate that the first day of the full hearing on the appeal will occur by September. We will continue to update the membership through the website throughout the process. 

Suffice to say, this corporation has had absolutely no conscience and forgets the many years of service that the workers given them.  We could use many adjectives to describe this corporation: shame on them.

We would encourage our members to contact Navistar, your MPs and MPPs through email and articulate your outrage that Navistar has once again denied workers natural justice.

Class Action Suit - Closure Agreement

The hearing on the above matter was held in late January of this year in Chatham.  We are still awaiting the decision of the judge and will as soon as we are notified we will communicate with the membership on the decision.  We recognize that considerable amount of time has passed but obviously we have no control on when the judge will report. 

Navistar Assistance Update March 11, 2013

Please be advised that Cathy Wiebenga is continuing her efforts and will be at the Local hall in attempts to answer member's questions on the following dates:

Tuesday, March 12, 2013 - 10:00 am to 3:00 p.m.
 Saturday, March 16, 2013 -   9 a.m. to noon

Navistar Pension Ruling

Attached you will find the decision of Financial Services Commission of Ontario (FSCO)and a synopsis of the decision. This long awaited decision supports the worker and their fight for justice.  Be advised that Navistar can appeal this decision to a tribunal and must do so within 30 days of the decision we will continue to monitor this situation and report to the membership.

We want to thank the members for their patience and their continued support; fighting back does make a difference.

Financial Services of Ontario(FSCO) Decision click here to see the complete decision

Synopsis


FSCO decision- Navistar Pension Update March 6, 2013 

As previously reported the CAW was informed to expect the decision on the above today, our office received a phone call from David Gordon superintendent of pensions (FSCO) and he notified us that the decision has been written and is waiting for two signatures to finalize the report,  he committed that we should receive the decision  within the next two to three days, note they do not email these decisions.  Please be advised that once we have received the written decision and reviewed the document with our pension and benefits department and legal department it will be posted on the website.

Thanks you for your patience in this matter. And we will communicate as soon as possible.

Navistar Assistance Update February 27, 2013

Please be advised that Cathy Wiebenga is continuing her efforts and will be at the Local hall in attempts to answer member's questions on the following dates:

Thursday February 28 Noon to 4:30 PM
Monday March 4 9AM to 1PM
Friday March 8 Noon to 4:30PM

Navistar Units Social Fund

Calculations have been completed in regards to the disbursement of the Navistar social fund for those who are members of the fund.  Cheques will be available for pick up at Local 127 hall - 280 Merritt Avenue at the above dates and times

Update February 19, 2013

CAW-CANADA AND NAVISTAR MEETING WITH THE FINANCIAL SERVICES COMMISSION OF ONTARIO (FSCO)

Pension Issues

On Tuesday, February 19, 2013, representatives of the CAW-Canada met with officials of Navistar, at the offices of the Financial Services Commission of Ontario (FSCO), which regulates pension plans in Ontario.

In attendance for the Union were:  Bob Chernecki (Retired) Assistant to the President, Lewis Gottheil, CAW-Canada Legal counsel, Jeff Wareham, National Representative, (Pension and Benefits), and Jim Mitchell, National Representative.  In addition, Cathy Wiebenga, Chairperson of the Navistar Plant Unit (Local 127), and Doug Wright, Plant Unit Committee Member (Local 127), were present on behalf of the Union.

The company was represented by its Vice President of Human Resources, Legal Counsel, and other representatives from its Human Resources Department.

The purpose of the meeting was to deal with the outstanding matters concerning the wind-up of the pension plan for Navistar members.  There are four outstanding issues.  If these issues could not be resolved, the CAW-Canada made clear its request that the wind-up process begin immediately.

The four issues under review and discussion were and remain:

1. The date of plan wind-up:  the Union accepts that a wind-up date for the Navistar pension plan is July 28, 2011, the date of the official notice of closure of the plant, and the effective termination of all members.

2. Special early retirement benefit (Article 1.03):  the Union asserts that in a context of a plant closure and plan wind-up, the law requires that any plan member whose age and service equals 55 points or more is entitled to, obtain or "grow-into" the actuarially unreduced Special early retirement benefit defined by Article 1.03 of the pension plan, as soon as he/she reaches the entitlement criteria of:  55 years of age and 10 years of credited service.  The company disagrees.

3. Related to issue 2 above, is a dispute over the entitlement of plan members who retired or terminated their employment prior to July 28, 2011, and after the Company's announcement of layoff notices in November, 2008:  the Union says that all such plan members are entitled to any advantages, and compensation provided by law in the wind-up process under the Pension Benefits Act, such as a "grow-in" to a Special early retirement benefit.  The company disagrees.

4. Crediting of service upon layoff:  this issue deals with a plan member's entitlement for credited service after the layoff and following the expiry of the collective agreement on June 30, 2009.  Specifically, this issue deals with the .9 pension credits guaranteed by Article 7.03 of the pension plan, covering a member's layoff period anytime from 2009 to 2011.

At the end of the meeting on February 19, 2013, the Deputy Superintendent of Pensions of FSCO notified the parties that since their appeared to be no agreement on the issues noted above his office was going to begin the process of the wind-up of the plan.  He committed to provide his report and decision no later than March 6, 2013.  It is imperative that the membership fully understand that either party, the Union or the employer, can appeal the report and decision of the Deputy Superintendent to a Tribunal called the Financial Services Tribunal.  In our view, it is likely that Navistar will appeal any decision made against them, and accordingly, we all must be aware of this prospect.

We will report through this website any new information and the Deputy Superintendent's actions as soon as is practically possible.

In closing, we fully recognize the frustration and anger expressed by the Navistar membership; but we underline that this meeting does start the process for final plan wind-up, and was critical with respect to a final conclusion on all the pension matters.

Update February 5, 2013

FSCO Meeting

This is to advise the Navistar membership that the meeting with the Financial Services Commission of Ontario (FSCO) was cancelled due to a death in the family of one of Navistar's management.
The meeting has been rescheduled for February 19th in Toronto. We will provide a full report on the website following this meeting.

Local Union Assistance

As most should know Sister Cathy Wiebenga has been at the Local Union Hall in attempts to answer some of the questions from the Local Union membership.
Please be advised that Cathy will be at the Local Union on February 20th from 9:00 a.m. to 2:00 p.m.

In case you didn't see it in the paper on Saturday January 19th, 2013 CAW ran a Navistar ad in the Chatham Daily News Newspaper please click here to view the ad.

Navistar Assistance

Please be advised that Cathy Wiebenga is continuing her efforts and will be at the Local hall in attempts to answer member's questions on the following dates: 

Thursday, January 24, 2013, 9 am to 3 pm
 
Tuesday, January 29, 2013, 9 am to 3 pm
 
Monday, February 4, 2013, 11 am to 4 pm

Please understand that both the severance and the pension matters are very complicated and Cathy will attempt, as much as possible to answer your questions.

January 14, 2013 - Meeting with Financial Services Commission of Ontario (FSCO)

We have been awaiting confirmation with FSCO and the corporation concerning the outstanding issues on the pension plan.
The Financial Services Commission of Ontario is responsible for the windup of the plan and they have confirmed a date of Wednesday January 30, 2013, at 2:00 p.m. in Toronto.

We will advise the membership of the results of this meeting.

REMINDER - Class Action Lawsuit

Tuesday, January 22, 2013 in Chatham at the Court House located at 425 Grand Avenue West. The court session will begin at 10:00 am.

General Info

Navistar Concedes Board Seats to Icahn, Rachesky: Chicago Mover
2012-10-08 18:39:47.856 GMT

By Mark Clothier
     Oct. 8 (Bloomberg) -- Navistar International Corp., the truckmaker trying to end losses, rose the most in more than a month after it averted a proxy fight with investor Carl Icahn by agreeing to accept three new directors.
     Navistar rose 6.3 percent to $22.55 at 2:39 p.m. New York time after reaching $23.06 for the biggest intraday gain since Sept. 6. Shares in the Lisle, Illinois-based company dropped 44 percent this year through Oct. 5.
     The truckmaker added Vincent Intrieri, an Icahn representative, and investor Mark Rachesky as directors. They replace Eugenio Clariond and Steve Klinger, the company said in a statement. Navistar said it agreed to add a third director to be designated and agreed upon by Icahn and Rachesky and their affiliates. The new directors will stand for election next year.
     Last month in a letter to Navistar's board, Icahn said he wanted four board seats made available to shareholders "immediately" and that he would proceed with "protracted litigation and a proxy fight" if necessary to protect his investment. Icahn has pressured Navistar's new management, led by former Textron Inc. Chief Executive Officer Lewis Campbell, after the company had a net loss of $241 million for the first three quarters of its fiscal year.
     "I am glad to have reached an agreement that provides strong shareholder representation on the board and look forward to working diligently with the board to enhance value at Navistar," Icahn said in the statement.

                           CEO Ouster

     The truckmaker ousted Dan Ustian as CEO in August after an inquiry from regulators about its accounting and disclosures, and the company reversed course on an engine strategy that had failed to meet 2010 federal emission standards. Icahn, who holds
14.9 percent of Navistar, said large shareholders weren't consulted about management changes, including Ustian's departure.
     "They're on the inside now instead of on the outside,"
David Leiker, an analyst with Robert W. Baird & Co., said in an interview. "This is following a fairly predictable path, but it's hard to say what the outcome ultimately will be."
     Navistar's four largest investors hold about 50 percent of the shares, including a stake of almost 15 percent held by Rachesky, according to data compiled by Bloomberg.
     Icahn publicly disclosed a stake in Navistar last year, followed by Rachesky in June. The investors have pushed Navistar to boost its valuation. The company in June adopted a poison pill to fend off hostile bids.
     Analysts have speculated that Navistar could attract suitors such as Fiat Industrial SpA and Volkswagen AG as they seek expansion in North America. An acquisition would be complicated by Navistar's defense business, which supplies the U.S. military, and its $3.2 billion in pension and retiree health-care obligations.
     "I continue to believe Navistar's unfunded pension and health-care obligations will be an impediment to any M&A transaction," said Leiker, who is based in Milwaukee and rates the shares neutral. "And that situation doesn't go away."

For Related News and Information:
Navistar analyst estimates: NAV US <Equity> EE B <GO> Navistar annual financial data: NAV US <Equity> CH1 <GO> Stock-mover stories: NI MOV <GO> Bloomberg Industries analysis: BI TRUC<GO>

Pension Eligible Navistar Employees

CAW and the Local Bargaining Committees have received a number of inquiries from Navistar members who are eligible to retire. There were a number of concerns that some members had about the process if they so choose to retire. Any members of the bargaining unit who are contemplating retirement should first make contact with their respective Bargaining Committees or National Representative Jim Mitchell or National Representative from CAW Pension and Benefit Department Jeff Wareham before they make their application.

We have confirmed with Navistar that the only documents that anyone should sign related to the above matter is their actual retirement papers.  Please note: as long as you sign your retirement application and do not sign any waiver or release of liability, then you will be part of the class action that has been initiated to obtain compensation from the company with respect to severance and notice pay, unless you choose to opt out at a later date.

For more information please follow the links below, or contact us with any questions. Check this site regularly for ongoing updates.

CAW Council

On April 13 to 15th the CAW held their Council meeting in Port Elgin, Ontario. There were over 600 delegates in attendance from across the country. Ken Lewenza provides a full report of the issues facing the union to the delegates. Enclosed is his report to the Council on the issues facing the Navistar membership.

To read Ken's report to the Council on the issues facing the Navistar membership please click here.

Letters

Response letter from CAW Legal Counsel re: Class Action Suit - May 10, 2012

Response letter from the Corporation re: Class Action Suit - May 4, 2012

Response letter from Financial Services Commission of Ontario (Pension Commission) - March 27, 2012

CAW President Ken Lewenza letter to CAW Locals re: Mass Demonstration -March 26,2012

CAW President Ken Lewenza letter to Financial Services Commission of Ontario (Pension Commission) -March 9, 2012

CAW President Ken Lewenza letter to Barry Morris, Director of Labour Relations  for International Truck - March 5, 2012

Class Action Suit

As discussed and presented at the March 4th, 2012 membership meeting. Please be advised that the CAW issued the documents on behalf of our members to the Chatham court house and to the Navistar corporation's offices today. In essence, our case makes the argument on numerous issues on Navistar's failure to negotiate a fair and equitable closure agreement.

Pension Commission of Ontario

Update

On Thursday, April 5th the CAW, working with its Legal and Pension and Benefits Departments, forwarded correspondence from National President Ken Lewenza to the Financial Services Commission of Ontario (FSCO). This correspondence outlines in detail, the CAW's position with respect to the pension matters that affect both the office and plant membership at Navistar.

The correspondence deals with a significant amount of issues primarily around the pension document contained in the collective agreement and rights that are afforded to workers that lose their employment due to the closure of a facility in the province of Ontario. The following are excerpts from the correspondence:

Dear Mr. Gordon,

We are in receipt of Mr. Bruce Dobie's letter to you dated March 23rd 2012 and wish to respond to a number of the statements and assertions made in the letter.  While we do not think it necessarily the best use of everyone's time to argue these points through an exchange of letters, we feel that some of what is stated in the March 23rd letter needs to be addressed.  We would also suggest, given the complexity of the matters and the conflicting interpretations of the parties in this case, that it may be worthwhile for FSCO to considering scheduling a discussion between the parties and the Regulator in an attempt to resolve the outstanding issues.  If such a meeting is something the Superintendent would consider valuable, feel free to contact me to make the appropriate arrangements.  We also advise that the submission below represents a précis of our position.  We reserve the right to make further and other submissions in the future as this matter evolves.

With respect to the main thrust of the Company submissions:

Navistar's submission goes to great lengths, in subsections b(iii) A through D, arguing the detail and applicability of the Guidelines set out in Exhibit C to the Plan.  Navistar's arguments are all designed to justify a narrow, restrictive interpretation of the benefits contained in the Plan and the application of the Act and Regulations on the Plan in the context of a partial plan wind up.

We reject that approach and the analysis outright. 

Please note, we will continue to keep the membership updated on the pension issues as they progress.


Presentations

CAW Closure Discussion Update presentation to Local 127 & 35 members - March 4, 2012

Key Government and Company Contact Information

Lewis Campbell- CEO of Navistar Inc.
Email: lewis.campbell@navistar.com

Dave Van Kesteren - MP Chatham-Kent-Essex
Email: dave.vankesteren@parl.gc.ca
Ph: 519-358-7555
 
Rick Nicholls - MPP Chatham-Kent-Essex
Email: rick.nicholls@pc.ola.org
Ph: 519-351-0510
519-351-0510
Fax 519-351-7714
rick.nichollsco@pc.ola.org

Randy Hope - Mayor of Chatham-Kent
Email: ckmayor@chatham-kent.ca
Phone: 519-436-3219