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Etobicoke Hydro
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For more info contact Kirk Baert at 416-595-2117 |
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Class Action against Etobicoke Hydro-Electric
Commission (now Toronto Hydro)
This matter was settled by the parties. The settlement was
approved by the Court on October 24, 2002. Particulars of the settlement
together with the settlement funds were mailed to those entitled in December
2002.
Background
We were retained by a committee of retirees, who represent approximately 69
retirees that were receiving insurance coverage under the Etobicoke Hydro
Retiree Health and Dental Plans as of June 13, 1996, to represent them in a
class action against Etobicoke Hydro.
The committee's claim alleged that Etobicoke Hydro breached its promise to
pay 50% towards the cost of the retirees' health and dental premiums (the
additional cost to each retiree being approximately $1,240.00 each year). They
also claimed for additional costs incurred, or that would be incurred, as a
result of the Ontario government cutbacks, which included deductibles for
prescription drug coverage and maximum allowable dispensing fees per
prescription.
Since 1988, Etobicoke Hydro's employment policy had been to pay 50% of the
retirees' premiums for their health and dental plan. Then, in 1997 Etobicoke
Hydro advised the retirees that they had instituted a new policy wherein
they would no longer be paying their 50% share and that the former employees
would be responsible for the full amount.
On March 6, 2001 the action was certified as a class proceeding under the Class
Proceedings Act. A Notice of Certification was issued to those affected
retirees.
The issue before the court was whether Etobicoke Hydro's agreement to pay the
50% constituted a "binding promise". There is case law from the Supreme Court
of Canada which supports the proposition that an employer cannot amend its
promise to provide retiree benefits after the employee has retired. The promise
made while the employee is employed becomes part of the employment contract and
therefore any later unilateral amendment by the employer is a breach of the
employment contract.
Linked to the left are the court documents including the settlement documents
for your perusal.
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