December 15, 2000
To:
Wajax Pension Plan Members @ wajaxretirees - (If you are a member or even if
not please print this out and give to other members of the plan).
Recently you have been notified that Wajax intends to convert their Pension Plan
to a Defined Contribution Plan from the Defined Benefit
Plan.
Many of our members
are very upset with the
Company's handling of the surplus dollars in the present plan
and believe that the surplus belongs to the employees and should be used for
their benefit.
Some facts you should know
1. We estimate there will be a surplus on Dec 31, 2000 in the range
of $15,000,000 (that's right, 15 Million
Dollars) because according to Wajax's 1999 Financial Statement (see item 16
of their notes) the surplus was 13 Million and will surely grow by 2 million
more in the year since.
2. We
understand the Company has not contributed one dime
to the Pension Plan since 1986 as earnings on the employees'
deductions have been more than enough to
fund the plan. Thus this surplus was earned entirely by the
employees contributions.
3.
Because of this, and other reasons, we feel the employees deserve the surplus in its entirety
whereas the
Company intends to keep it for its own benefit such as funding
its matching
contributions on the
new plan,
thus
your contribution would be matched by your
own money not by the Company's money as
promised.
Most companies that have changed their pensions to Defined Contribution
have added the surplus to the employees conversion value.
4. This surplus we estimate is about 30% of the total conversion
values of the members of the plan. We feel other than an upgrade to the
present pensioners all the money should be added to our conversion values.
5. To calculate how much additional we estimate you
should get: On the recent forms they sent you, take the amount shown under Option
2 that says "Conversion Value of Your Present Plan
entitlement
to Dec 3l, 2000" and multiply by 30%. In other words if this
amount is $100,000. we feel you are entitled to an additional $30,000. This by
the way is not a high number - some long term employees are entitled to an
additional $150,000 or more.
With the above in mind, a group of employees from all across Canada have formed
an ad hoc committee to try and get their rightful share. We have been
fortunate to get two well-known, retired Wajax executives to join our
crusade. They are: Gordon Donaldson and Gerry Cunningham
If you have not contributed your $100. towards this cause,
please do so now. (click
here)
We have had some
informal advice that reinforces our belief that we have a legal right to this surplus,
however we must now move forward on an organized basis with proper legal representation.
Towards this end we ask each of you to contribute $100. towards these costs.
Would you please send (as soon as possible) your cheques to either
of the above. Please make cheques payable to either of their
names and mark "In Trust" These contributions will be kept completely
confidential and in a separate "Trust Account" for the purpose
of defending our rights.
Thank
You
P.S. We have a website operating www.wajaxretirees.com.
Access it and click the Pension link for up to date information regarding the
above. Please bookmark this site for easy access.
P.P.S. Please include with your cheque any personal mail or email addresses so that we can
keep you up to date.
