After Lampert took control of Sears Canada in 2005, billions were paid out in dividends

http://www.cbc.ca/news/business/sears-canada-court-dividends-eddie-lampert-esl-investments-1.4531988

Sears pensioners try to recoup missing money by going after billions paid to shareholders

Major shareholder Eddie Lampert says the billions in dividend payouts were justified

Sophia Harris · CBC News · Posted: Feb 13, 2018 4:00 AM ET

  969 Comments                                                                                           Commenting is now closed for this story.

 
David Amos

Methinks its high time Sophia Harris review all the documents I sent her in 2002 N'esy Pas?

 
Richard Sharp

Hedge funds equal raw capitalism. Mergers, acquisitions and bankruptcies benefitting and protecting shareholders and creditors while screwing the employees and communities are everyday stuff. National governments need to act together to change the laws to better protect their citizens from these gross injustices and thievery happening in plain view.

David Amos

@Richard Sharp YUP

David Amos

@Richard Sharp FYI I found this statement rather comical "Eady says, according to Sears' actuaries, the pension plan is underfunded by approximately $270 million."

From personal experience I know for a fact that anyone who trusts the words of actuaries is a fool.

Content disabled.

David Amos

@Richard Sharp How long do ya think our comments will stand the test of time this time?

Michele McLean

@David Amos

The actuaries are the ones telling the truth.

The evil-doers are the corporations - and the governments who allow it - who intentionally underfund pension plans, leaving pensioners vulnerable to exactly what's happening now.

Richard Sharp

@David Allan

Perhaps you can explain your unsubstantiated opinion.

David Amos

@Michele McLean "The actuaries are the ones telling the truth."

I respectfully disagree bigtime The actuaries spin their tales in light of who hired them to do so.

David Amos

@Richard Sharp Why not ask me pretty please?

Al Kennedy

@Richard Sharp
In just under 2 hours Stephen Bronfman, Trudeau's chief advisor and fundraiser raised $250,000 for Trudeau and the LPC. That's the same Bronfman who has stashed $60 million in offshore trusts. http://www.cbc.ca/news/business/stephen-bronfman-trudeau-paradise-papers-1.4382511

david mccaig

@Richard Sharp

Quote Richard "I respectfully disagree with you (and Neil) that the Trudeau Libs are Con lite (or the same as the Cons). Taxes have been increased on richest Canadians, will be increased on incorporated businesses paying family members preforming no work and, mark my words, Morneau is going to go after offshore shenanigans by both corporations and the wealthy."

Richard I ALWAYS respect your opinion , so I hope you're correct .

Content disabled.

David Amos

@Al Kennedy "In just under 2 hours Stephen Bronfman, Trudeau's chief advisor and fundraiser raised $250,000 for Trudeau and the LPC"

In just under 2 hours CBC will have allowed Mr Sharp to have the most liked thread all day within this website without his content being disabled. Methinks that may be his personal best simply because one cannot do any better than that in this forum N'esy Pas?

David Amos

@david mccaig "Richard I ALWAYS respect your opinion , so I hope you're correct ."

ROTFLMAO

David Amos

@Al Kennedy Methinks that Mr Bronfman will relieved to know that his friends in CBC blocked my reply to you N'esy Pas?

 
Wil Brown

If I were the Pension Trustee, I'd also be going after the bonuses paid out to top executives. Bonuses are paid for meeting goals and I would think that bankruptcy is not a goal to be rewarded.

David Amos

@Wil Brown "I would think that bankruptcy is not a goal to be rewarded"

However that is the MO of a corporate raider Hence he rewards his minions as they sell off the assets of an old and once very successful business for the benefit of the shareholders who bought the majority of the shares in order to do just exactly that. Methinks one of their juicy targets is always the pension plans that back up the debt they create. Declaring bankruptcy is part of the end game tis all N'esy Pas?

 
Jack Richards

Would be nice to see the Sears pensioners win this case.

David Amos

@Jack Richards "Would be nice to see the Sears pensioners win this case."

YUP but don't bet the ranch on that happening.

 
John Templar

OUTRAGEOUS! the government should have put liens on sears canada's real estate holdings until this is settled.

David Fuller

@John Templar
No
There is nothing illegal here

Michael Murphy

@David Fuller Not paying my mortgage isn't either but that won't prevent the bank from placing a lien on my house

David Amos

@Michael Murphy "Not paying my mortgage isn't either but that won't prevent the bank from placing a lien on my house"

Your are arguing apples versus oranges

Methinks that whereas the government oversees bankruptcy they have the power do what is necessary in the best interest of justice. N'esy Pas?

 

David Amos

@Mike Martin The government can certainly investigate malicious actions that caused the pension plans to be affected while the shareholders withdrew big profits and paid their minions bonuses. Methinks some folks call that kind of action fraud N'esy Pas?

 
Bruce Nelson

I imagine at some point, folks will figure out that electing millionaires, who then appoint other millionaires to the Senate, and who then pass laws that benefit other millionaires, is a process that is not at all for, or in, or of their best interests, but I won't be holding my breath.

Wil Brown

@Stephane Kwong - unfortunately, Layton also thought it was ok to live in social housing while pulling down 6 figures.

David Amos

@Wil Brown Good point

David Amos 

@Wil Brown "Personally, I've run out of choices and believe every political party is the same. I'm looking for an independent candidate who is running a door-door campaign and isn't accepting financial contributions for the next election."

I ran as Independent in five elections but I did not bother folks at their door while CBC ignored my name on the ballot.

http://www.cbc.ca/news/canada/new-brunswick/fundy-royal-riding-profile-1.3274276

I just hoped folks would listen to me on the radio or come to the debates I had with the party members or watched me debate them on TV. (Google Fundy Royal Debate if you wish see what I say is true)

 

Paul Bourgoin

Major Sears shareholder Eddie Lampert laughing his way to the bank with employee pension Money!! Where are those Canadian laws protecting the workers?

Ronnie McDonald

@Paul Bourgoin The law protects Lambert from getting what he deserves, which is lynched.

David Amos

@Ronnie McDonald I kinda sorta disagree. Fraud is Fraud etc.

Methinks it is the politically appointed law enforcement authorities who refuse to do their job by simply investigating and prosecuting evil dudes such as Lambert for political reasons N'esy Pas?

 

Fenian Conn

Where is the bankruptcy protection for employees?

David Amos

@Fenian Conn "Where is the bankruptcy protection for employees?"

Its hiding along with the blindfolded Lady with the scales and the Unicorn on our Coat of Arms

 
Alex Zander
"But in a blog posted on the weekend, Lampert defended the dividend payments, stating that a company needs to provide adequate returns to shareholders to stay viable."

That's a load of self-serving hooey. Keeping money in the company to re-invest and expand and improve the company provides "adequate" return. Warren Buffet pays ZERO dividends from Berkshire Hathaway and that company provides fantastic returns to its shareholders.

People like Lampert strip companies of their valuable assets and pay themselves with NO regard for creditors or employees. They do so with impunity and it's sickening.

Friday Jones

@Alex Zander

You realize though that Canadian pensions, including our own CPP, were investors in Sears right? People think only rich people own shares in companies, but if you have a pension plan of any type, they invest in the stock market.

Without growth, which Sears did not have, people look for their investment to return a dividend. Berkshire may not pay OUT a dividend, but it HOLDS it's increase in assets which in turn increases the share value. It's just another way to increase shareholder value, but with pension plans, they need some cash to pay out to retirees, they can't just sit on a big pile of money. So, dividends are important.

David Amos

@Friday Jones "People like Lampert strip companies of their valuable assets and pay themselves with NO regard for creditors or employees. They do so with impunity and it's sickening."

YUP

David Amos

@Friday Jones "You realize though that Canadian pensions, including our own CPP, were investors in Sears right?"

YES Why do you think I ran for public office five times?

 

John Tsang

By the time things deteriorate to bankruptcy, money, such as those set aside for pension funds, have long been methodological channeled to foreign soil into foreign entities, as in Sears Canada's case to the US into private US investment companies. There needs to be a strong independent legislative body to oversee and control of foreign acquisition of, or investment into, Canadian companies. For now, Canada is just another ATM for US hedge funds, disguised as foreign investments. They are not investors. They are corporate and pension fund raiders. A lesson should be learned once only, to prevent history repeats itself.

David Amos 

@John Tsang "There needs to be a strong independent legislative body to oversee and control of foreign acquisition of, or investment into, Canadian companies."

We have no Federal Oversight whatsoever when it comes to the Securities Exchange business. However I proved way back in 2003 that the Yankee SEC is infinitely corrupt so why waste anymore taxpayer funds creating an equally corrupt entity up here. I know for a fact that if just one of our federal or provincial law enforcement authorities acted ethically way back in 2003 my Clan would not have suffered so much since then

 
Danny Tanker
"Sears pensioners try to recoup missing money by going after billions paid to shareholders."

I hope this group gets their money and in the process financially embarrass those who blithely walked over them. I also hope they can set a precedent for future businesses who think they can stomp on ordinary Canadians and virtually laugh in their faces. 

David Amos

@Stephane Kwong "The only thing is can they afford high priced lawyers that will make it happen."

Methinks all the old folks need is an ethical consultant to advise the lawyers they do have. Trust that the consultant would work for coffee, cigarettes and peanuts if in return they will say his name. I bet Eddie Lampert's minions are checking me out right N'esy Pas?

http://www.cbc.ca/news/business/sears-canada-retirees-pension-plan-1.4528447

Sears retirees wait to learn fate of their pensions and wonder where the money went

Major Sears shareholder Eddie Lampert says Sears dividend payouts had no impact on the pension plan

CBC News · Posted: Feb 11, 2018 4:00 AM ET

2714 Comments                                                                                          Commenting is now closed for this story.

 

Bob Winter

There have to reforms to protect the pensioners. Sears and Nortel are only two of a long list.

 

Neil Gregory

@Bob Winter

Well, since neither the Liberals nor the Conservative have done anything to protect the pensions of working class people in the past, I hope you aren't holding your breath while you wait for them to act because I don't see either of them doing anything about the situation in the future.

Louis D'Aoust

@Neil Gregory Lampert and the like will be allowed to continue stealing because as you say no party has the balls to do anything about it. Let's see if Trudeau can instead of abruptly correcting someone in mid sentence, focus on what really matters to Canadians.

Rob Shea

@Louis D'Aoust Trudeau doesn’t care about Canadians

Content disabled. 
David Amos

@Louis D'Aoust "Lampert and the like will be allowed to continue stealing because as you say no party has the balls to do anything about it. "

Truer words were never published in CBC

Content disabled.

David Amos

@David Amos Interesting my comment had 5 likes before CBC blocked it N'esy Pas?

Bo Xi Lai

Canadians are a strange breed. They care a lot about face. To show that they have not lose face to his American, in the end they will blame everything on themselves, while still wagging their tails at their master, their Almighty US of A.

Content disabled.
David Amos

@Bo Xi Lai Methinks you are pot calling the kettle black N'esy Pas? For the record I dealt with Asian men for years and nobody cared more about face than they did.

Content disabled.
David Amos

@Bo Xi Lai Methinks it is rather interesting that CBC would not allow me to reply in defense of my fellow Canadians N'esy Pas?

 
Chris P. Bacon

When the rich rob the poor, it's called business. When the poor fight back, it's called violence.

Neil Gregory

@Ian Mackie

"How do businesses 'rob the poor?' "

Did you not read the story?

Do you not remember Nortel?

David Amos

@Neil Gregory I recall sending Hard Copy of two lawsuits with exhibits attached with similair concerns to Sophia Harris of CBC (signature required) in 2002 and I have not heard a peep yet even after I ran for public office five times and sued the Crown as well.

Neil Gregory

@David Amos

And, are you surprised? You shouldn't be.

David Amos

@Neil Gregory So you know who I am correct?

mo bennett

@David Amos does anybody know what time it is, does anybody really care.

David Amos

@mo bennett I do and nobody cares not even you N'esy Pas?

Fran Land

@Robert Loblaw
I am going to be careful where I spend my money. If enough people boycott unethical businesses then things might change.

David Amos

@Fran Land Methinks it would be wise to watch the stock market and be very careful how you spend any money anywhere N'esy Pas?

 

Brian Cohen

@David Amos
What the heck is "N'esy Pas"??
If it's a clever attempt at French, you've failed.

David Amos

@Brian Cohen Try using Google before you troll me

 

Ken MacDonald

There really isn't an excuse; pensions should be untouchable. If current laws don't protect the pensions of retirees, then the laws are flawed and need to be changed.

Neil Gregory

@Ken MacDonald

Of course the laws are flawed. And the reason the laws are flawed is because the filthy-rich who control both the Liberals and Conservative parties in Canada have ensured that the laws passed but those parties primarily benefit the one-per-centers in this country.

David Amos

@Neil Gregory YUP

 

Karen O'malley

@Neil Gregory You hit the nail on the head. Until we turf out the two parties that have run this country since its inception, we're going to get worse and worse.

David Amos

@Karen O'malley Methinks you should understand why I ran for public office five times as an Independent N'esy Pas?

David Amos

@Ken MacDonald "There really isn't an excuse; pensions should be untouchable."

Its always been my opinion a deal is a deal is a deal but lawyers, beancounters, politicians and banksters don't seem to agree with me.

  
Ian Mackie

Bankruptcy legislation needs to be updated in Canada. Pension funds should be prioritized over secured creditors, as the obligations were made as a part of an employment contract.
Moreover, underfunding pensions should not be allowed as a matter of accounting. I feel for Sears pensioners who rely on these funds.

David Amos

@Ian Mackie This nonsense is standard operating procedure for corporate raiders. My question is why do the governments of purportedly profound democracies continue to allow such obvious malice?

 

Karen O'malley

@David Amos

In the words of Network (1976), a brilliant movie, "there is no America. There is no democracy. There is only IBM, AT&T...." We have the ILLUSION of democracy, not democracy.

David Amos

@Karen O'malley I after refer to the revelations made upon Mr Beale when he claimed he said the face of god in the fictional boardroom long ago.

David Amos

@Karen O'malley often

David Amos

@Robert Ross "However the dividend portion is another matter, which is essentially interest. That should be further down the list, and bonuses should not exist in bankruptcy proceedings. "

I concur

Fran Land

@David Amos
Excellent point. Senior Bureaucrats at CRA we’re given bonuses. Bonuses should not exist.

David Amos 

 @Fran Land FYI My Father was the Tax Supervisor of this province when I went to High School in the sixties. When he died at an age younger than I am now his pretty widow my Mother married the Chief Electoral Officer. My Brother in Law's law firm partner was one of the VP's of the PC Party who assisted MacKay in merging with Harper"s strange dudes.

Why do you think I sued 3 Yankee IRS Agents in 2002 then ran as Independent in the election of the 38th Parliament 2 years later if were not sincere in what I said on the public record in Yankee courts 16 years ago?


 
Ida Pomme

Pension money should never be held by the company, its not their money.

guy pope

@donna gregoire

And Harper cashed in his empties? He knows where the unused funds where including the e.i and emergency fund to help him "balance" the books.

David Amos

@guy pope YUP

David Amos

@Pat Evans Now now be fair Harper was the boss when CBC published this. Before Potash Corp closed their brand new mine

http://www.cbc.ca/news/canada/new-brunswick/fundy-royal-riding-profile-1.3274276

At least the pensioners who worked for Potash Corp are ok thus far and they have a very strange pension plan.

 
Glen Sampson

I have commented on this before. Companies run underfunded pensions plans because they can, because it's legal. Politicians can change the rules on this but they don't and likely won't. Liberals and Conservatives are both guilty of turning their heads on this issue.

When Justin Trudeau or, (Insert favorite politician here), retires, you can rest assured they will collect every dollar of pension they have coming to them. They understand the fix folks, but I don't expect them to fix it.

Bob Dobbs

@Glen Sampson

"They understand the fix folks, but I don't expect them to fix it."

They expect the public to forget about it. And they're right.

Jean St. Amour

@Glen Sampson
"Liberals and Conservatives are both guilty of turning their heads"

Completely. The Hard Truth has been told..

David Amos

@Jean St. Amour YUP But the same tale has been told many times to no avail Methinks the awful truth is most folks don't give a damn until it happens to them N'esy Pas?

Colinda Bean

@David Amos

"n'est-ce pas"

David Amos

@Colinda Bean Vive la Difference N'esy pas?

  
Michael G. L. Geraldson

I'm retired and living on a pension. Although I'm far from being wealthy, I'm comfortable. However, a 19% reduction in my pension, almost a fifth of that income alone, would cause me serious hardships. I'd probably have to look at part time work. And honestly, nobody would hire me. That is no way to treat a faithful employee with 33 years of service. Shame on you Sears!

David Amos

@Michael G. L. Geraldson Perhaps you should Google me

Stephen Roberts

@David Amos I googled you.... found an obituary....

David Amos

@Stephen Roberts I heard that rumour too

John Gerrits

@Stephen Roberts ....a voice from beyond.......

David Amos

@John Gerrits Having fun at my expense are we?

Fran Land

@Robert Loblaw
If there are affordable rentals available. In Toronto expect to pay 2000k per month for a one bedroom where bed bugs may be residing. You will need extra for a parking spot and will need to pay last months rent as well as another deposit.

David Amos

@Fran Land WOW

mo bennett

@David Amos why?

 

Brant Mitchell

Why aren’t we seeing tweets from government leaders about how unfair this is, and how Canada needs to do better?

David Amos

@Brant Mitchell Methinks Trudeau "The Younger" and his many minions do not want to open another can of worms on the same weekend N'esy Pas?

 

Joe Powers

You want to know what's really sad about this is, CBC should ask a retired Sears employee how much there monthly Sears pension is, than people would know how Sears retiree feel like.
A billionaire taking his/her $500.00 monthly income away after working there for 40 yrs.

FRANCIS DOYLE

@Joe Powers It's nothing more than Greed & to think in this day & age the protectionism for our tax paying employees obviously are not in place for these Sears employees is sad indeed. let's hope our government people will do whatever it takes to help them out.

David Amos

@FRANCIS DOYLE We all pay taxes However there is a big difference in where you worked as to how secure your old age income is. For instance the bureaucrat's pension benefits are well protected by the taxpayer but the pensions of employees of publicly held corporations are always in jeopardy because of greedy corporate raiders and poor management etc.

  
Chris P. Bacon

Corporations are filthy parasites that suck the lifeblood out of society and leave a path of destruction in their wake. The capitalist model of pathological greed.

Nicolas Krinis

@Chris P. Bacon You ought to refuse your CPP and OAS when you retire. Most of it comes from investing in corporations.

David Amos

@Nicolas Krinis FYI My first job was at Simpson Sears in the sixties and I had to apply for a SIN to get it. Many years later the Feds killed my SIN and I had to threaten to sue the Crown in order to get my CPP and OAS because I am a whistleblower against evil people who control corporations. If you don't believe me Google this

David Amos Bank Fraud

David Amos

@John Steed "I own a corporation with one employee. 95% of corps are small and are the life blood of this country, treat their employees very well and creating the wealth that sustains this great nation."

ME TOO but I employed folks than you

David Amos

@Jacques LaPalmier "It is mostly the cancerous "greed is good" larger Corporations who have embraced Unfettered Capitalism (UC) that are giving Capitalism a really bad name"

Methinks they already have N'esy Pas?

  
Chris P. Bacon

Why are they waiting? We all know where their money went. It was stolen by the executives whose job it is to extinguish every last piece of this filthy company. They are being taken because their anger isn’t sufficient enough to have them organized and protesting in the streets. They win. You lost. The courts don’t care.

David Amos

@Chris P. Bacon I disagree The courts care if you embarrass them in a political fashion


 
Chris P. Bacon
The diseased state of capitalistic culture is repulsive. To think that thousands of people who dedicated their entire lives to this company and received this kind of treatment truly means that none of us are protected, and that governments are in absolute failure to their citizens. To think that families pay often more than half of their income to the thievery of government entities should offend every last Canadian. Want to fix this problem, you need to organize and hit the streets and quit being so complacent with the thievery. CEOs and government officials need to understand that the cost of their corruption is prison.

David Amos

@John Gerrits "Kind of like what unions have attempted and been successful at for years.....but we all know that unions are bad,bad,bad......according to companies."

I know for a fact the unions are no better. A Union Boss proved that once again to me in spades during the Public Session of the NBEUB hearing last week

Fran Land

@David Amos
The Union rank and file have to be diligent when their leadership becomes complacent or co-opted.

 
Alexander Borgia

This should be investigated as a crime of theft or fraud.

John Gerrits

@Neil Gregory Appears some are pushing the NDP.Would that be the same NDP that gave 100s of millions to one of Canada's richest families,the Irvings,to secure an open tender for ships and other govt contracts.....while Irving continues to bring in lower paid foreign employees and Canadian workers sit home?
The same govt that gave govt unions massive wage increases that will saddle the province of NS for years.
Just curious

David Amos

@Alexander Borgia "This should be investigated as a crime of theft or fraud."

YUP

David Amos

@John Gerrits FYI I argued Irving Clan's General Counsel of their Ship Building outfit in Federal Court after Harper appointed him to be a judge. Then I appealed a decision of his that he decided in my favour because of the blatant conflict of interest.

 
Charles van Duren

"However, Lampert said the critics have it all wrong. In a lengthy statement to CBC News, he said that Sears Canada met its demise not because of big dividend payments, but due to bad moves made by management."

Of course a major shareholder has no influence on management.

Of course.

mo bennett

@Charles van Duren does yer tongue hurt?

David Amos

@Charles van Duren "Lampert said the critics have it all wrong."

Methinks the cockroaches don't like being in the limelight N'esy Pas?

Neil Gregory

@David Amos

Are you comparing corporate executive to cockroaches? What did those poor cockroaches ever do to you that you would insult them like that?

David Amos

@Neil Gregory Are you making fun of my false imprisonment on their behalf?

 

mo bennett

@David Amos is that a new webster definition for politician?

David Amos

@mo bennett Hard telling not knowing for sure. However I do know for a fact that the evil bureaucrats who run the Evil Circus that abuses the taxpayer on a daily basis call politicians "Temporary Help"

mo bennett

@David Amos they're only temporary if they don't get their 6 years in. if they do, we're saddled with the parasites til they come out in a pine box.

Fran Land

@David Amos
We should never underestimate the influence of senior level bureaucrats.

David Amos

@Fran Land Who said I do?

 

John Tsang

(1)
Beware of corporate and pension raiders from the US.

ESL Investments, a privately owned US hedge fund is the culprit behind the demise of Sears Canada. ESL has been dipping its hands into Sears Canada's cash and depleting it fast.

Hedge funds, especially US hedge funds are notorious. They are unethical. They can cause prolong destruction to a country's economy. During the Asian economic crisis in 2007, US hedge funds were trying to get into Hong Kong's massive Foreign Exchange Reserves.

Fortunately, the Hong Kong Government took decisive steps to intervene the Hong Kong stock markets. It was one rare momentary deviation from Hong Kong Government's Laissez-Faire policy. Unfortunately, because of this Government intervention, Hong Kong’s index of economic freedom did suffer briefly. However, the quick and decisive actions of the Hong Kong Government saved the Hong Kong economy, and possibly averted the 2007 Asian economic crisis from worsening.

Hong Kong had a massive Foreign Exchange Reserves which her government could inject into her stock markets to fend off those US hedge funds in 2007. Furthermore, Hong Kong had the backing of China’s Foreign Exchange Reserves which were roughly around 10 times those of Hong Kong’s.

David Amos

@John Tsang "Beware of corporate and pension raiders from the US. "

Methinks Hollywood made movies about such dudes long ago N'esy Pas?

  

John Tsang

(2)
As for Canada, with a Foreign Exchange Reserves of less than 1/5 of Hong Kong’s, a GDP less than 1/7 of China’s, and all levels of the Canadian government heavily in debts, there is little chance the Canadian stock markets can be defended, should these US hedge funds decide to attack. They are like leaches sucking blood slowly from your economy for years while dormant. When they decide to attack, they will bite a huge chunk off your economy.

There needs to be a change in the legislative laws on foreign investments to protect Canadian pensioners who fall victims to these corporate and pension raiders from the US. Beware of US hedge funds. They are not investors. They are corporate and pension raiders.

David Amos

@John Tsang Methinks you should check my work N'esy Pas?

 
Robert McAlpine
The lesson should have been learned by the Nortel bankrupcy, and the Target banruptcy; but now were are dealing with the Sears banruptcy and legidlation still has not even been intriduced to protect retirement funds. Companies must be forced to segregate pension funds in trust accounts that cannot be raided by creditors upon liquidation of a company.

Employees must be considered secure creditors in bankruptcies. These people risk as much and more as do banks and creditors; but they lack the political might to protect their interests.

Governments must end this raiding of pension funds.

David Amos

@Robert McAlpine "Governments must end this raiding of pension funds."

Do you recall when Paul Martin raided ours in order to make his books looks good?

  

Vernon McPhee

@David Amos Technically he raided the UI/EI funds not the CPP.

David Amos

@Vernon McPhee Nope he scooped a lot of the CPP too then created a bard to oversee what was left

  
Irv Millar

There was muted voices in the Official Opposition and the leader of the nation was indifferent to the plight of Canadian workers. I will never understand how labour could put a single cent towards the parties of the right. Both are NAFTA backers. Neither care about the future of Canada as a nation. One hundred and fifty years of exploitive practises in the name of power, control, assimilation and greed.

David Amos

@Neil Gregory "The problems is that there are so many individuals to point at that one has to generalize."

YUP

YO MO Is that brief enough for you ?

mo bennett

@David Amos the really big question is would a politician or any politician wanna bee's be able to figure that out.

David Amos

@mo bennett I did years ago Check my work

mo bennett

@David Amos we're not interested in ancient history, although we still have to pay for the mistakes of others.

David Amos

@mo bennett My lawsuit is current

Fran Land

@David Amos
A responsible citizen is always interested in history, ancient or modern.

David Amos

@Fran Land Here ya go begin here in 2015 Federal Court file # T-1557-15

 

mike holy

Gail Paul said she thought her retirement income was secure after all the years she paid into her pension at Sears Canada''
paying a longer duration does not guarantee more security
never rely on a company pension to save you
best wishes all
God bless

David Amos

@Neil Gregory "Such is the sympathy one gets from the supporters of our right-wing governments and the greed based capitalist system."

YUP

 
Neil Gregory

Make the greedy pay!

Those corporate executive who fail to maintain the corporations' pension funds, and there are many of them, should have their salaries and bonuses taxed at 200% until the pension funds are fully funded.

tony thomas

@mo bennett yep and the other parties would be so much more receptive to doing it. They are all crooks.

David Amos

@tony thomas I agree

 
Gorden Feist

It should be criminal for people to pay into pensions and then have the money that should have been used as pensions given as bonuses to the CEO's who ran the company into the ground.

David Pylyp

@Gorden Feist
People like Morneau and Trudeau could amend the bankruptcy legislation ....

Gorden Feist

@David Pylyp Any party since 1900 could have done that.

Louis Carroll

@David Pylyp
They could amend it but their friends won't allow it
And Morneau and Weepy don't understand the concept of pensions

'Whaaa, Don't peopel just live off money their daddies saved for them???"

David Amos

@Louis Carroll Methinks many a true word is said in jest N'esy Pas?

David Amos

@Jacques LaPalmier "And we all know how WCC gets 'punished'."

Rarely Correct?

 
mo bennett

executive bonuses, where else?

David Amos

@mo bennett Since you asked Mo Methinks the corporate raiders have to payoff the politicians too so they don't get investigated and prosecuted N'esy Pas?

 
mo bennett

@David Amos that too, messy pas. they need some extra to support their entitlement income.

   

Brenda Estile

Corporations have been stealing from the working-class for decades.

David Amos

@Brenda Estile Methinks the corporate theft has gone on for centuries

  

  Andrew Farmer

As an investor with some ethics and integrity, if I were to see Mr Lampert or his company involved with something I owned, I'd get out as quickly as possible.

David Amos

@Andrew Farmer Or what?

  

Garry Horsnell

The title says "Sears retirees wait to learn fate of their pensions and wonder where the money went".

Good luck with that.

The money has probably gone to pay CEOs in the U.S.A.

Why do Canadian governments allow companies exploit and cheat workers?

David Amos

@Garry Horsnell "Why do Canadian governments allow companies exploit and cheat workers?"

Methinks if they didn't they would not get elected N'esy Pas?

Brian Cohen

@David Amos
It's N'est pas, not N'esy
Once is a type-o
Repeatedly posting the same thing only makes you look foolish

David Amos

@Brian Cohen So you say Trust that folks in Northern Italy used the expression long before I ever did

Gordon MacFarlane

@Brian Cohen

Agreed. Just more silliness

David Amos

@Gordon MacFarlane Methinks that was a rather interesting insult to come from you of all people N'esy Pas?

Gordon MacFarlane

@David Amos

Don't know what you mean and don't really care, neti pot?

 
Dale MacNaughton

When a business I worked for back in the 1980’s went out of business many of my co-workers lost their pension funds. I’ve very surprised that 30 years later, employees are still not considered secure creditors.

Teddy Clifton

@Dale MacNaughton I am saddened to hear that you are surprised. I would ask what has changed in the system over the period that causes your surprise that would have led to a different outcome (only the passage of time--nothing else).

David Amos

@Teddy Clifton Sad but oh so true

 

Kent Right

the smart ones were those who took a lump sum 2 years ago
Sears going under was not a new flash

David Amos

@Kent Right You have a point. However why should they have been put in such a corner?

 

Robert Loblaw

Theft.

David Amos

@Robert Loblaw "Theft."

YUP

 

Gene Sewell

Plain and simple the money was legally stolen . Corporations have many tricks for accounting they can borrow from their cash flow at > .05 % over 40 yrs never paying back the principle money they can siphon off cash flow back into the business paying out huge bonuses and the list goes on . Sears was a planned failure and was dismantled in a ceo and top shareholder [Eddy lambert take all ] move. All legal but so very morally wrong . more coming .like Canada holding the Tax bill for the target fiasco in Canada .

David Amos

@Gene Sewell "Plain and simple the money was legally stolen"

Methinks there is no such term found in law N'esy Pas?

Gene Sewell

@David Amos well I guess you will never understand the intent of the words . Just like the sears ceo , was side tracking the intent of the laws for personal gain.

David Amos

@Gene Sewell Legally stolen??? Yea right tell me another one.

Sears pensioners try to recoup missing money by going after billions paid to shareholders

Major shareholder Eddie Lampert says the billions in dividend payouts were justified

Sophia Harris · CBC News · Posted: Feb 13, 2018 4:00 AM ET

Representative for Sears pensions want a court trustee to scrutinize almost $3 billion in dividends paid out to Sears shareholders. (Nathan Denette/Canadian Press)

Sears Canada pensioners are heading to court to try to recoup close to $300 million they say is missing from their pension fund following the retailer's demise.

Representatives for Sears pensioners will ask Ontario Superior Court on Thursday to appoint a trustee to scrutinize nearly $3 billion paid in dividends to Sears shareholders — the biggest recipient of which was Eddie Lampert, CEO of U.S. hedge fund ESL Investments.

The pensioners' aim is to recover some of the dividend money, not just to help top-up their reduced pensions, but also to provide funds for other creditors owed money by Sears.

Lampert says there's nothing suspect about the dividend payments, but many ex-Sears employees disagree.

"There is good reason to believe that was inappropriate," says pensioner representative and Sears retiree Ken Eady.

Trustee request 'not surprising'

A court document filed by the pensioners' legal counsel claims the dividend payments — totalling $2.934 billion — deserve close examination by a litigation trustee.

The money came from the sale of valuable Sears Canada assets such as prime real estate. The dividends were paid out between 2005 and 2013, during a time when the retailer's sales and profits declined and the company's pension plan started to show a shortfall.

"Despite the company's continued financial deterioration, Sears Canada's board of directors approved the payment of dividends to its shareholders," states the court document.

Sears closed its doors last month, leaving behind an underfunded pension plan. (CBC/Patrick Morrell)

It also takes aim at Lampert, stating that in 2005, Sears Canada came under the control of ESL Investments run by the U.S. businessman, who greatly benefited financially from the dividends.

"Through ESL, Lampert had direct and indirect control of shareholdings of Sears Canada at the material times, and was the main beneficiary of dividend payments," said the document

• Sears retirees wait to learn fate of their pensions and wonder where the money went

Eady says it was inevitable that pensioners would go after the dividend payments.

"It's not surprising that this would happen, given in what universe is it correct for a company to sell its assets, pay the dividends and leave the creditors without anything?" he said.

Pension problems

Eady says, according to Sears' actuaries, the pension plan is underfunded by approximately $270 million. That means about 16,000 ex-Sears employees will face an estimated 19 per cent reduction to their pensions.

The looming shortfall has left many Sears retirees angry and distraught about their retirement prospects.

"It's going to hurt. I might have to get a part-time job to off-set what I'm not getting," said 72-year-old Attilio Malatesta. He spent more than half of his 44-year career with Sears working in sales in Kelowna, B.C.

Malatesta says he's pleased about the plan to go after the dividend payments.

"It's a good thing," he said. "I think we've got a fair chance."

Retiree Attilio Malatesta spent the majority of his 44-year career with Sears working in sales in Kelowna, B.C. (Attilio Malatesta)

Sears Canada didn't respond to a CBC News request for comment.

But in a blog posted on the weekend, Lampert defended the dividend payments, stating that a company needs to provide adequate returns to shareholders to stay viable.

He said the payouts didn't hurt the retailer because it continued to invest in the company at consistent levels.

He also noted that in 2012 and 2013, Sears made its required pension contributions, even though $611 million was paid out in dividends. However, by that point, the plan was already showing a deficit which was never recouped.

Lampert also said that Sears' shareholders have collectively lost more than $1 billion since 2012, even when taking into account the dividend payments.

As for Sears Canada's demise, he said it was primarily the result of a costly, but unsuccessful, restructuring strategy launched in 2016.

"I raised concerns about this strategy with management but the company decided to proceed," he said.

Major Sears shareholder Eddie Lampert of ESL Investments said the retailer met its demise due to bad moves made by management. (Sears Holdings)

Lampert is also CEO of Sears Holdings Corp. (SHC) in the U.S., which operates separately from Sears Canada.

He essentially became Sears' largest shareholder through ESL Investments and his holdings in SHC which previously held a large stake in Sears Canada.

• Analysis
  Is your pension safe? It may depend on what happens to your company

SHC also defended the dividend payments in a statement.

"Sears Holdings received dividends that were duly authorized by Sears Canada's board of directors during a time when Sears Canada was clearly solvent, with minimal debt," said spokesperson Chris Brathwaite in a statement.

"We believe any attempt to reclaim those dividends would be unfounded,"

Lampert also said the Sears Canada's pension plan's shortfall has been overestimated and suggests there won't even be a shortfall when the fund is paid out.

Retiree Eady disagrees, but says he wishes that Lampert was right.

Sears retirees wait to learn fate of their pensions and wonder where the money went

Major Sears shareholder Eddie Lampert says Sears dividend payouts had no impact on the pension plan

Sophia Harris · CBC News · Posted: Feb 11, 2018 4:00 AM ET | 

Sears retiree Gail McLelland is bracing herself for a diminished pension. (Submitted by Gail McLelland)


Sears Canada retirees are still waiting to learn the fate of their pensions. Many are also still struggling to understand how it got to this point.

"I accepted it, but now I'm back in the anger stage again," said Gail McClelland, who worked in furniture sales in Calgary for most of her 33-year career with Sears.

The retailer closed its doors last month, leaving behind an underfunded pension plan. About 16,000 ex-employees are bracing for a reduction in their pensions sometime this year, estimated at 19 per cent by the Sears Canada Retiree Group (SCRG), a volunteer organization representing retirees.

"I'm just going to have to cut back and I mean, that's what you worked your life for, and now it's compromised," said McClelland, a 68-year-old widow.

Some retirees, like McClelland, blame much of their fate on Sears Canada's largest shareholder, Eddie Lampert, CEO of U.S. hedge fund, ESL Investments.

• Who killed Sears question sparks bitter blame game among top players

Following a series of liquidation sales, Sears Canada closed its doors to the public in January. (Evan Mitsui/CBC)

After Lampert took control of Sears Canada in 2005, billions were paid out in dividends to shareholders like himself, while the retailer struggled for survival.

"They couldn't afford to [top up the pension fund], but they could pay out dividends," McClelland said.
However, Lampert said the critics have it all wrong. In a lengthy statement to CBC News, he said that Sears Canada met its demise not because of big dividend payments, but due to bad moves made by management.

Major Sears shareholder Eddie Lampert of ESL Investments said the retailer met its demise due to bad moves made by management. (Sears Holdings)

Lampert also said the pension fund's deficit has been overestimated and anticipates that by the time it's wound up, there likely won't be a shortfall.

"I wish he was right. Then I wouldn't have to be worried," Sears retiree and SCRG vice-president Ken Eady said.

He said according to Sears's own actuaries, the latest statistics from 2015 show that plan was more than $266 million short if it were to be paid out.

"The possibility of Sears meeting its [pension] obligations, I would say is close to nil."

$3.5B returned to shareholders

Eady said Sears Canada's pension plan has been underfunded since 2007.

According to court documents, since 2012, SCRG continually expressed concerns about the diminishing plan at a time when the retailer's sales and profits were declining and millions were being paid out to shareholders in special dividends.

"Sears didn't appear to be committed to investing in Sears's future," Eady said.

A 2014 letter sent to the retailer's legal counsel from lawyer Andrew Hatnay with Koskie Minsky, the law firm representing Sears retirees, also expressed concerns.

Hatnay wrote that "despite the deteriorating financial situation at Sears Canada," its board of directors continued to approve big payouts to shareholders following the sale of assets such as valuable real estate.

• So much for 'happily ever after': Sears pensioners stagger under stress of cuts

​He said that since 2005, when Lampert's ESL Investments acquired control of Sears Canada, the retailer had returned $3.5 billion to shareholders, largely through special dividends.

Hatnay also noted that as a major Sears shareholder, ESL Investments benefited significantly from the dividend payouts.

"It's not necessarily the [pension] shortfall that was the problem," Eady said. "It was about taking the money out of the company and allowing the company not to operate properly, thus leaving the pension plan high and dry."

'Payments had no impact whatsoever'

Sears Canada didn't respond to CBC News's request for comment.

But Lampert defended the dividend payouts, stating that a company needs to provide adequate returns to shareholders to stay viable.

He also said the payouts — which ceased in 2013 — didn't hurt the retailer because it continued to invest in the company at consistent levels, and meet its pension plan funding requirements.

"The [dividend] payments had no impact whatsoever on the Sears Canada pension plans," wrote Lampert who is also CEO of Sears Holdings in the U.S., which operates separately from Sears Canada.

• Read Eddie Lampert's full response

As for Sear Canada's demise, Lampert said it was primarily the result of a costly but unsuccessful restructuring strategy launched in 2016.

"I raised concerns about this strategy with management but the company decided to proceed," he said.

Gail Paul said she thought her retirement income was secure after all the years she paid into her pension at Sears Canada. (Bernice Hillier/CBC)

Regardless of who's to blame, according to SCRG, Sears employees now face diminished pensions.
"It's a big disappointment after working for a company for 27 years and you dedicate your life to them," said Gail Paul, who sold appliances for Sears in Corner Brook, N.L.

"I never thought I'd be in this situation," she said. "You figured your retirement was going to be set."

• Final Sears Canada stores shuttered for good

Meanwhile, SCRG has reached out to the Ontario government, asking for help. Its proposals include keeping the pension plan active and hopefully recouping some of the shortfall by either the government taking it over, or by amalgamating the fund with another pension plan.

"It's quite doable," Eady said.

The Ministry of Finance told CBC News it's currently reviewing the letter.

Some retirees also believe there's one other glimmer of hope. The court appointed monitor for Sears Canada's insolvency is reviewing $611 million the company paid in total in special dividends in 2012 and 2013.

"I'm holding out hope that something will happen, that somebody will get that money back for us," said retiree McClelland.

McClelland at a Sears liquidation sale in Calgary. (Submitted by Gail McClelland)

Lampert, however, said that there's nothing suspect about those dividend payments. The money was generated by real estate sales and he said Sears kept roughly half the proceeds to invest in the company.

"I too very much regret the failure of Sears Canada," he said. "Like all other stakeholders, ESL has suffered significant losses from the bankruptcy of this storied company."