Employers Permitted To Reduce Retiree Benefits After Retirement

The Ontario Superior Court has ruled that employers may unilaterally reduce retiree benefits after retirement if there is clear and unambiguous language demonstrating that the employer has reserved the right to do so in its communications with employees (O'Neill v. General Motors of Canada, 2013 ONSC 4654).

In 2007, General Motors began to unilaterally reduce health coverage and life insurance for retired employees. In the O'Neill v General Motors class action, the court examined 260 booklets, brochures and...