Michelin Canada Cleared of Pension Fund Wrongdoing

(Staffordshire, U.K./Tyres & Accessories) A Supreme Court in the Canadian province of Nova Scotia has ruled in favour of Michelin North America in a dispute between the tyremaker and a number of retired employees over CA$268 million (≤136 million) the retirees believe to be owed to their pension plan.

Between 1984 and 1988 and then between 1995 and 2001 Michelin North America (Canada) covered its required annual contribution to the fund using a surplus in the plan. The former employees wanted Michelin to place that money back in the fund, and instigated legal proceedings to force the company to do so.

However according to the ruling delivered by Justice Suzanne Hood on October 30, Michelin has fulfilled its obligations in terms of contributions to the pension plan. Therefore the amendments to the plan deemed invalid by the plaintiffs have been upheld as legal.

During hearings Michelin argued that the pension fund was delivering a healthy surplus during the periods in question, and following the advice from the company’s actuary it stopped making contributions during those years. Michelin North America (Canada) stated in a press release that it is pleased with Justice Hood’s decision.

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