Accuride workers secure millions in pension surplus after landmark union court victory

The union for laid off Accuride workers has secured a multi-million-dollar court victory. CTV London’s Gerry Dewan has the details.

Hundreds of former Accuride employees who lost their jobs when the company’s London, Ont. plant closed over a year ago are set to receive a significant financial boost.

A hard-fought legal battle spearheaded by Unifor Local 27 has secured millions of dollars in surplus funds from the company’s Defined Benefit Pension Fund, overturning Accuride’s claim to the money.

The closure of the Accuride plant in February 2025 left many workers without employment. Following the company’s bankruptcy, a substantial surplus was discovered in the pension fund, sparking a dispute over its ownership. Accuride initially took the position that the surplus belonged to the corporation.

“We said, ‘Absolutely not,’” stated Unifor Local 27 President Brian Chapman.

After consulting with the union’s national office and finding no clear path forward, Chapman hired legal counsel to fight for the workers’ entitlement to the funds.

The surplus, initially estimated to be between $2.7 and $2.9 million, was ultimately revealed to be $4.7 million through the court process.

In a decisive ruling, the courts sided with the union, awarding the entire surplus to the former Accuride workers.

“Where the hell did that surplus come from? Other than the people that were working there paying into it,” commented Pat Murphy, a 42-year Accuride veteran and former plant chair.

He credited the union’s advocacy, adding, “If it wasn’t for Brian Chapman and our local, we wouldn’t have gotten nothing done.”

Unifor National President Lana Payne lauded the outcome, saying, “This victory shows what unions can accomplish when we refuse to back down ... This is about dignity, fairness, and making sure corporations can’t raid pension funds that belong to workers.”

Chapman echoed the sentiment, noting, “There’s not always a win like this. We feel really good about it, to be honest. Even though it’s a really bad, bad situation.”

Once legal costs are deducted, approximately $4.1 million is expected to be distributed among the 300 to 400 affected individuals. A court-appointed counsel will determine the exact distribution method, with length of service identified as a principal factor.

The union also confirmed that other outstanding issues, including vacation pay and severance pay, are still being addressed and could potentially result in an additional $500,000 for former employees.

Meanwhile, the former Accuride facility at 31 Firestone Blvd. is undergoing retrofitting to become a multi-use space.

In the interim, an employment power centre, established at the Unifor 27 headquarters after the plant’s closure, continues to offer job search support and training opportunities.

Originally slated to operate for one year, its funding has been extended until February 2027.

Glenn Bradshaw, the Power Centre coordinator, stated the aim is, “Trying to do, anything, training-wise, to get them back on the road to employment.”