Pensions could be paid by Hydro One shares

Tentative deal with union trades concessions for stock
By Liz Foster
|Canadian Labour Reporter|Last Updated: 05/19/2015

Public debate surrounding the privatization of Hydro One continues, but plans are already in place to divvy up Ontario’s electric utility.

A tentative agreement signed last month between Hydro One and the Power Workers’ Union (PWU) would see employees' pensions compensated, in part, by shares in the company.

Starting in 2017, PWU employees contributing to the pension plan would also participate in a new IPO "share grant plan." The shares in question would be equivalent to 2.7 per cent of the employees’ salary effective from the initial share price. The shares would be granted each year for a total of 12 years.