AGS Automotive Systems Arbitration Award

April 28, 2011, 2:40 PM EST

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Another significant arbitration victory involves AGS Automotive Systems and CAW Local 124 in Scarborough, Ontario.

An arbitrator has agreed that a laid off employee in Ontario is entitled to both retire and receive severance pay under the Employment Standards Act and retiree health benefits under a collective agreement, as argued by the union.

The employer had argued that a laid off worker had only two mutually exclusive choices; retire and get retiree benefits or renounce his or her recall rights and get severance pay.

The CAW submitted that receipt of both was legally consistent and logical. The positive award will benefit dozens of workers at AGS Automotive Systems and workers across the province.

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