Higgs government wins final approval for public-sector pension bill
PC majority forces passage of law over objections from opposition parties
The Higgs government has won final approval for legislation that will force five public-sector employee groups into a shared-risk pension system, a setback for the Canadian Union of Public Employees but a major win for Premier Blaine Higgs.
MLAs voted 28-19 for the bill Tuesday afternoon during the third and final reading of the legislation.
Union members in the public gallery jeered during the votes, all but drowning out the sound of the legislature clerk calling the names of MLAs as they voted.
The bill will become law Wednesday – the final sitting day before Christmas – when Lt.-Gov. Brenda Murphy arrives at the legislature to grant royal asset to it and other pieces of legislation passed this fall.
Sandy
Harding, regional director for the Canadian Union of Public Employees,
says this is 'not the end' of the fight over the shared-risk pensions. (Jacques Poitras)
CUPE regional director Sandy Harding told reporters that once the bill is in effect, the union leadership will look at legal options, including a court challenge or labour grievances against what CUPE considers an illegal move by the province.
"We're going to go back and regroup tonight," she said. "We have meetings all day tomorrow to see. This is the beginning, not the end."
Earlier in the day, Higgs defended the legislation as necessary to fix a shortfall in the pension fund for the affected union locals — while having little impact on their benefits.
"When people realize, 'I'm on pension, what's it mean to me?' Nothing. 'I've got 25 years in, what's it mean to me?' Minor changes, Mr. Speaker, minor changes in contribution, minor changes in what it might take for retirement time," he said earlier during question period.
"The point is, we have an unfunded liability of $265 million. It needs to be fixed."
As New Brunswick's finance minister in 2014, Higgs set up the shared-risk system and persuaded or forced several public-sector employee groups to join it, including some CUPE locals.
Members
of the CUPE union protested against the bill in November. The union
said the bill violates its members' previous agreement with the
province. (Jacques Poitras/CBC)
But two CUPE bargaining units representing school custodians, maintenance workers, bus drivers and administrative staff continued to resist as recently as 2021, when Higgs, now premier, tried to shift them into the system during contract negotiations to end a strike.
They signed a side agreement on pensions with the province in 2021 at the end of a 16-day strike, setting up a separate process to resolve the issue.
Late last month Higgs accused the union of dragging its feet on that and introduced the Pension Plan Sustainability and Transfer Act.
It will force the two CUPE locals and three groups in the New Brunswick Council of Nursing Home Unions into a process to determine the future of their pension plans.
It requires them to choose one of three different shared-risk pension plans and for the transition to begin by Feb. 1.
CUPE says the contract it signed in 2021 does not allow the province to do that, making the legislation a violation of the agreement and of collective bargaining rights.
Union officials warned last week that some members could strike illegally in response to the bill, though so far there's been no sign of that.
Opposition members again denounced the bill as Tuesday's debate moved toward its inevitable conclusion.
"You signed an agreement committing to a process that you have abandoned," said Liberal Leader Susan Holt. "Now unions in this province can't trust that they will be able to negotiate freely and fairly with you."
Liberal
Leader Susan Holt again denounced the bill before it passed, adding
that unions now cannot trust the negotiating process with the province. (Ed Hunter/CBC)
Green MLA Kevin Arseneau was rebuffed when he asked Higgs to reconsider and allow at least one day of committee hearings on the bill with independent witnesses.
"The bill is garbage. Throw it out," Arseneau said when the government turned him down.
"We all know the premier doesn't like the process he can't control."
During question period, Higgs accused the Liberals of doing little to address funding shortfalls in the public pension system — and of promising to reverse his 2014 shared-risk law only to abandon the promise when they took power that year.
"You might look at that and say 'We're trying to put in a pension plan that will protect itself from future Liberal governments,' Mr. Speaker, because that's where the province goes over the cliff and it can't fund it."
In fact, the 2014 Liberal election platform committed only to "inviting civil servants and retirees who had pension reforms imposed upon them back to the negotiating table for an open, fair and transparent dialogue."
Green MLA Kevin Arseneau called the bill 'garbage' before it was approved. (Ed Hunter/CBC)
The objective, it said, "would be to achieve agreement on a way forward for these individuals' pensions while respecting the financial challenges facing the province."
Before the final vote, MLAs passed a motion to limit debate on the bill to 10 hours.
Because they'd already spent more time than that on it last week, the passage of that motion immediately ended the debate on second reading.
The second reading vote was 28-19 in favour, and a committee stage vote that followed immediately also passed, 27-19.
ABOUT THE AUTHOR
Yea Right
Rosco holt
Reply to David Amos
It won't other unions been fighting this for years already.
David Amos
Reply to Rosco holt
Trust that I am well aware of what went down quite likely more than Higgy is
"A team from Morneau Shepell worked with the government-appointed expert task force and collaborating unions on the Shared Risk Pension Plan (SRPP) design for the Province of New Brunswick. As actuary on this project, Morneau Shepell consulted on the development of the new plan design and provided in-depth analysis."
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Heh Heh Ho Ho
Heh Heh Ho Ho
Heh Heh Ho Ho
Higgs has got to leave
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Reply to Don Corey
It's obvious than Susan Holt is more interested in playing politics than saving money for NB taxpayers. Her stripes are becoming clearer when she actually makes a comment, instead of sitting on the fence.
Dan Lee
Reply to Don Corey
in other words ...she is backing up the workers
Don Corey
Reply to Dan Lee
Not really.....just playing the political game.
David Amos
Reply to Don Corey
True
Dan Lee
Reply to Don Corey
are you scared what she might do.........Arseneau was also p.........hmmmm you never mentioned him.......ahhhhh he must had been truly honest...............
Don Corey
Reply to Dan Lee
What is there to be scared of? The rest of your post is meaningless garble.
Don Corey
The NB shared-risk plans are actually defined benefit, but with the shared risk provision. They are far better than 99% of plans in the private sector, and will save NB taxpayers hundreds of millions over the years.
Good job by Higgs in putting an end to the union delay tactics and getting these CUPE groups where they belong.
Wilbur Ross
Reply to Don Corey
We'll be on strike after Christmas and it will be a nasty one. We have nothing really to lose. Job market is in our favour bub. Bring it on.
Don Corey
Reply to Wilbur Ross
Your union won't support a wildcat. Your choice.
Wilbur Ross
Reply to Don Corey
Bahahahaha ... that's what you think.
Don Corey
Reply to Wilbur Ross
Guess we'll find out soon enough. To repeat, it'll be your choice.
Wilbur Ross
Reply to Don Corey
Not really. Higgs made this choice son.
Don Corey
Reply to Wilbur Ross
Higgs made the right move on behalf of NB taxpayers.
Do you really know anything about a shared-risk plan, and how extremely generous it still is compared to the average private sector worker?
Donald LeBlanc.
Reply to Don Corey
Wildcat is the least of Higgs' (and our) problem. The problem here is that all these job categories already have huge staff shortages that are getting worse by the day. This will only accelerate even more massive departures from what is left of the ranks. You can legislate strikers back to work but you can't legislate them back when thay quit. You also can't legislate replacement workers to take jobs nobody wants. You just double or triple the pay on offer like we're doing with "Travel Nurses". That's what passes for "good money management" in NB.
David Amos
Reply to Don Corey
Obviously we agree to disagree
Don Corey
Reply to Donald LeBlanc.
Let's get real here. Nobody is going to leave a unionized public sector job with it's still very generous pension plan, a full benefits package and employment security.
Don Corey
Reply to David Amos
True.
David Amos
Reply to Don Corey
Nobody I know signed a contract for a shared-risk plan. However the last person I loved whose benefits Higgy attacked died this year so now I no longer care
Errol Willis
Reply to Wilbur Ross
Not gonna happen
Carl Bainbridge
Reply to Don Corey
I guess I will ask a different question
Do you really think that any of these jobs are "well paid" or have a "generous pension"
Even before transfering to shared risk, these pensions could never be called generous. Barely adequate at best.
And no none of the positions involved in this attack are well paid, they are all severely underpaid compared to similar work categories
Don Corey
Reply to Carl Bainbridge
Why did you not respond to my question? It was specific to pension plans.
Carl Bainbridge
Reply to Don Corey
I did
I told you, the current plans (Before Higgs made them even worse) were barely adequate at best
David Webb
Reply to Donald LeBlanc.
Ya, the shortage of nurses, doctors, trades people, etc. across the country is Higgs' fault. Lol.
Don Corey
Reply to Carl Bainbridge
So you acknowledge that you don't know what a shared-risk pension plan is; exactly what I figured.
Deborah Reddon
Reply to Donald LeBlanc.
Exactly right! Who wants to work for an employer that tramples all over them and treats them as if they don't matter and are not consulted.
Laura Smith
"As New Brunswick's finance minister in 2014, Higgs set up the shared-risk system and persuaded or forced several public-sector employee groups to join it, including some CUPE locals."
Merry Christmas! The best misery is shared misery.
Archie MacDaniel
Reply to Laura Smith
Yes, and it appears to work so well the Libs did not change a thing when they were in power.
Don Corey
Reply to Laura Smith
Do you really have a clue about a shared-risk plan? It's certainly a "misery" than private sector workers would love to have.
David Amos
Reply to Don Corey
I have a few clues about it that nobody cares to know
Donald LeBlanc
Reply to Archie MacDaniel
You're right about the double talking "Graham/Gallant/Boudreau/Atcon Liberals". But there isn't a single member of that crowd left in Holt's caucus; she made sure of that. In government, she's certainly not going adopt their incompetent and corrupt ways and she's certainly not going to adopt the even more incompetent, corrupt and evil Higgs ways. We can all pray that she only gets a minority government with the Greens as Loyal Opposition. That is our surest bet for a return to democracy and sanity.
David Webb
Reply to Donald LeBlanc
The best predictor of future behaviour is past behaviour. Lets pray the people that think debt doesn't matter ever get back in. I would like to hear Ms. Holt, or Mr. Coon for that matter, talk about what their plan is to improve the finances of the province. We have a $20 billion debt!!!!!!!! At least the liberal governments MRDC (Remember Doug Young) financed highway the province couldn't afford to finance, will be paid off in ten more years. Why do people not understand that interest payments going to debt takes away money that could be used for healthcare, education, housing, infrastructure, social services and subsidised housing.
Wilbur Ross
Higgs flushes away our Rights to Collective Bargaining as he wipes his A with the Constitution of Canada. Time to fight back. Higgs has set a dangerous precedent for the whole of country. Government contracts of all sorts are in danger if this is allowed to stand.
Archie MacDaniel
Reply to Wilbur Ross
The pension was not part of the collective bargaining agreement, you are making the same mistake the rookie leader of the opposition made. Problem is rest of the country is also moving to shared risk. But your sensationalism is 2nd to none, well done.
Wilbur Ross
Reply to Archie MacDaniel
You really need to do some research with all your free time :D
David Amos.
Reply to Archie MacDaniel
"Problem is rest of the country is also moving to shared risk"
Who?
Donald LeBlanc
Reply to Archie MacDaniel
Can you name one other jurisdiction in Canada where the public sector has moved to shared risk. I could be wrong, but I doubt they exist. Of course Michelle Smith wants to pull Alberta out of the CPP and I'm sure "Crypto Pierre" will back her up 100% if he ever gets to be PM. And of course that is the opposite of shared risk because the people of Alberta will be taking ALL the risk if she gets her way, especially after the oil and gas industry has milked every nickel out of it before they're forced to escape to their tax shelters once the climate meltdown shuts down Alberta and most of Canada. Higgs' old (and still) bosses will be "sharing the risk" of the same tax shelters and the rest of us will be sharing Trumpian hell.
David Webb
Reply to Donald LeBlanc
Lot's of feelings from a devout debt doesn't matter taker
Bobby Richards
Michelle Conroy used to have lots to say in defence of nurses. Now she’s hoping her vote for Higgs will get her promoted. It’s amazing how one can turn when they can stand to reap a reward.
David Amos.
Reply to Bobby Richards
Glad you noticed
Donald LeBlanc
Reply to Bobby Richards
When she made the move with Austin to the PCs she was quoted as saying they have the same values. After today (and long before), that is crystal clear and should start thinking about her next career move at the end of next year. If I were her I'd stay away from any unionized shop like her old RN gig. Their "values" are polar opposite.
Bobby Richards
Reply to Donald LeBlanc
Exactly
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