https://www.cbc.ca/news/canada/new-brunswick/cupe-strike-votes-higgs-1.6163230
Strike votes loom for more than 22,000 public sector workers
Workers in 10 CUPE locals could be off the job within weeks if deals aren't reached, CUPE president says
By next week, more than 22,000 workers from 10 locals of the Canadian Union of Public Employees expect to hold strike votes.
And if deals aren't signed, they could be walking off the job before the end of September.
"It would have quite a serious impact on the province. It would basically, after a number of days, shut the province down," said CUPE New Brunswick president Steve Drost.
"If these groups decide to pull their services … it would have quite a detrimental impact on the province."
Workers in 10 locals without contracts
The 10 union locals include workers in the health care, education, transportation and agricultural sectors, as well as social workers, jail guards, court stenographers, and staff at Worksafe NB, the New Brunswick Community Colleges and N.B. Liquor.
All have been without contracts since between 2016 and 2019.
"These workers never wanted to take strike action, but they feel they've been backed into a corner," Drost said.
Union and government bargaining teams have been in separate meeting rooms in a Fredericton hotel since Tuesday, passing proposals back and forth.
Premier Blaine Higgs has said wage restraint was necessary because COVID-19 pushed the province into a precarious financial position. (Jon Collicott/CBC)
Pandemic put pressure on finances: Higgs
Last December, Higgs said he would ask public-sector unions to agree to four-year contracts with no wage increase in one year and one-per-cent wage increases in each of the three remaining years.
He said wage restraint was necessary because COVID-19 had pushed the province into a precarious financial position.
This year's provincial budget projected a deficit of $244.8 million. The government had planned to release its first-quarter financial update on Thursday but that was later postponed.
Drost said years of wage increases below the pace of the cost of living have forced many public employees to take on second jobs or leave their jobs altogether. Others can't keep up with rents that are rising far faster than their salaries, he said.
The premier's office said Thursday it was not able to comment on the talks.
Earlier this year, spokesperson Jennifer Vienneau said the province and CUPE could "collaborate to find savings" that would allow wage increases.
She also said at the time that in the event of a strike, "impacted departments will have a contingency plan in place to minimize disruptions and delays to residents."
Centralized wage negotiation process requested
In August, Higgs asked the CUPE locals to agree to a centralized wage negotiation process. All 10 locals are in talks with provincial negotiators to try to reach a single wage template for all their collective agreements.
If that happens, they'd then finalize the other non-wage terms of each contract individually.
Drost said last week the province proposed a new six-year wage package with one-per-cent increases in each of the first four years followed by two-per-cent increases in the fifth and sixth years.
He said that was "quite an insult" because it was identical to the package recently rejected by the New Brunswick Nurses Union.
Even
if the two sides agree to a wage package before Tuesday, the strike
votes will probably go ahead to ensure the other parts of the individual
contracts are settled quickly.
"The members feel it's
necessary to have a very strong message to government that they are
expected to resolve these contracts," Drost said.
Province leaves bargaining table as strike votes loom for thousands of public-sector workers
Higgs says CUPE 'chose not to' have meaningful discussion, CUPE says province 'refused' to respond to proposal
By next week, more than 22,000 workers from 10 locals of the Canadian Union of Public Employees expect to hold strike votes.
And if deals aren't signed, they could be walking off the job before the end of September.
"It would have quite a serious impact on the province. It would basically, after a number of days, shut the province down," said CUPE New Brunswick president Steve Drost.
"If these groups decide to pull their services … it would have quite a detrimental impact on the province."
Workers in 10 locals without contracts
The 10 union locals include workers in the health care, education, transportation and agricultural sectors, as well as social workers, jail guards, court stenographers, and staff at Worksafe NB, the New Brunswick Community Colleges and N.B. Liquor.
All have been without contracts since between 2016 and 2019.
"These workers never wanted to take strike action, but they feel they've been backed into a corner," Drost said.
Earlier this year, CUPE gave the province 100 days to reach agreements. That deadline expires Sept. 7.
Union and government bargaining teams have been in separate meeting rooms in a Fredericton hotel since Tuesday, passing proposals back and forth.
On Friday morning, the province left the bargaining table, CUPE said in an email to reporters.
The union said government negotiators "refused to respond" to a proposal it delivered Thursday night and did not want to negotiate unless CUPE agreed to concessions.
In a statement, Higgs said CUPE had refused to budge from a demand for five-per-cent annual wage increases over four years "and was planning strike votes for next week while we were at the table this week.
"The union had the opportunity to engage in meaningful negotiations but chose not to on all subjects, which is very disappointing," he said.
Higgs said the union's demand would have cost $158 million, while the province's latest counter-offer would have cost $71 million.
Premier Blaine Higgs has said wage restraint was necessary because COVID-19 pushed the province into a precarious financial position. (Jon Collicott/CBC)
Pandemic put pressure on finances: Higgs
Last December, Higgs said he would ask public-sector unions to agree to four-year contracts with no wage increase in one year and one-per-cent wage increases in each of the three remaining years.
He said wage restraint was necessary because COVID-19 had pushed the province into a precarious financial position.
This year's provincial budget projected a deficit of $244.8 million. The government had planned to release its first-quarter financial update on Thursday but that was later postponed.
Drost said years of wage increases below the pace of the cost of living have forced many public employees to take on second jobs or leave their jobs altogether. Others can't keep up with rents that are rising far faster than their salaries, he said.
Centralized wage negotiation process requested
In August, Higgs asked the CUPE locals to agree to a centralized wage negotiation process. All 10 locals are in talks with provincial negotiators to try to reach a single wage template for all their collective agreements.
If that happens, they'd then finalize the other non-wage terms of each contract individually.
Drost said last week the province proposed a new six-year wage package with one-per-cent increases in each of the first four years followed by two-per-cent increases in the fifth and sixth years.
He said that was "quite an insult" because it was identical to the package recently rejected by the New Brunswick Nurses Union.
Higgs said Friday that the province had made a new offer of annual increases of 1.25 per cent over four years and then two per cent in the fifth and sixth years.
But in return he wanted CUPE to agree to concessions, including converting members' pensions to the shared-risk model used elsewhere in the civil service and transferring about 100 union members to management positions.
The statement also said the province offered an extra 2.5 per cent wage increase if members agreed to give up a retirement allowance that now exists.
The premier's statement says contingency plans are in place if union locals opt to strike.
https://nb.cupe.ca/contact-us/
CUPE New Brunswick
91 Woodside Lane
Fredericton, NB, E3C 0C5
(506) 458-8059
stephendrost1418@gmail.com
General Inquiries
Stephen Drost – CUPE NB President
208 Lancaster Avenue
Saint John, NB
E2M 2K9
Tel: (506) 635-1622
stephendrost1418@gmail.com
Regional Media Contact
Simon Ouellette
Communications Representative, CUPE Maritimes
souellette@cupe.ca
506-229-6038 (cell)
https://www.facebook.com/cupeNBscfp/
https://nb.cupe.ca/2021/05/28/higgs-has-100-days-to-settle-a-fair-deal-with-cupe-members/
Higgs has 100 Days to settle a fair deal with CUPE members
CUPE NB, representing over 28,000 workers in New Brunswick, held a press conference to announce its ultimatum to NB Premier Blaine Higgs. View the full conference here.
“Starting Sunday, May 30th, Premier Higgs has one hundred (100) days to settle collective agreements for all the CUPE locals who have been waiting long enough for a fair deal,” said CUPE NB President Stephen Drost.
Higgs has until Labour Day in September to fix recruitment and retention issues and bring fair wages to the 21,860 CUPE members in bargaining – over 8,580 of which are in a deadlock and more than 13,280 who are headed for conciliation in the next 50 days.
“If Higgs refuses to act in a tangible manner, once the 100 days are passed, CUPE members will have to mount a province-wide coordinated action,” added Drost.
“This ultimatum is the most responsible way to get this government to act. By September, most residents will already be vaccinated. One hundred days is more than generous when you consider how most workers have been waiting for years and years to get fair deals,” said Drost.
During the press conference, CUPE Local 1840 – representing NB Court Stenographers – also announced it had just filed a request to the NB Labour and Employment Board to recognize a deadlock in bargaining. Government has refused to offer Court Stenographers a fair deal since 2016.
Before Christmas, in the middle of the second COVID-19 wave, Premier Blaine Higgs promised “Zeroes for our Heroes.” All NB public sector workers would be mandated a wage freeze followed by three years of one percent increases. Half a year later, Higgs has not yet altered his collision course with the public sector: “He has not acted in any way to fix the recruitment and retention crisis in major sectors. Higgs is playing a dangerous game of poker, thinking essential workers who fought off COVID-19 will simply fold under pressure, rather than unite and demand respect,” concluded Drost.
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About
Our focus is to engage the public in their own communities using the motto: Local People, Local Stories, Global Perspective. It’s important to know and understand what is happening in your own backyard. Because things can change quickly, and by understanding the issues that affect you and your surroundings, the better chance you have to be the steward of where you live.
Our Team
Erik Gingles Journalist
A Moncton boy Erik is the president of the boutique marketing agency i communications inc. Prior to that he taught English for a large manufacturing company in Nagano Japan. While there he penned his book ‘Living North of Lucky’ as well as writing on the Nagano Winter Olympics for USA Today and MacLean’s Magazine as well as Velo News covering World Cup events. Since his return Erik has worked as a Story Producer for the Discovery channel series the Frontier’s of Construction, CBC radio, and has written hundreds of humour and business related articles. In the summer of 2016 he started buzzlocal.tv – an online video news magazine focussing on the local
Alex Journalist
Raised in Moncton, Alex studied journalism at St. Thomas University. He started working with Buzzlocal in late 2016. He enjoys a good movie, a good read, and a good board game. Alex plans to become not so quite an amateur sailor.
Contact us: buzz@buzzlocal.tv
https://www.ginglesformayor.com/about
E rik Gingles
For MAYOR
You may know him from many different aspects of the city...
-
from BuzzLocalTV, reporting on the stories of Moncton, and regularly covering City Council proceedings for the past four-and-a-half years.
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since childhood having attended Bessborough School where the library carries his mother’s name and Harrison Trimble, or at UNB in Fredericton. Or even perhaps as a parent whose daughters all attended school in Moncton's west end.
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perhaps from being part of the business community for the past twenty years
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You may know him from his engagement in the community serving
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people and organizations by leveraging his BUZZLOCAL platform to bring wider attention to their needs or concerns
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arts & culture through the original Capital Théâtre School board, a judge at the Atlantic Journalism Awards, and as a founding member/actor in the Hairy Tease community theatre troupe at Theatre l’Escaouette
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as an MC for many groups and fundraising organizations over the years
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the environment through co-founding/administering Friends of Centennial Park and investigating the dangers of using crumb rubber in our playgrounds and sports fields
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as a regular parent volunteer at Bessborough School and participating with Friends of the Highlanders at BMHS
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as a member of the organizing committee for Save Our Schools
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his church community serving on church council or through organizing the bi-annual pancake breakfast at Mount Royal United Church for the past 15 years
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You may know him from his many outdoor sporting activities; coaching school soccer, participating in the 8-day Tour of Hope Ride raising money for the Dr. Georges L. Dumont Hospital lodge, completing the full IronMan (4 km swim, 180-km bike, 42-km run) in Mont Tremblant Quebec at the age of 50 as a member Moncton's Southeast Storm Triathlon Club
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Erik and his wife Caroline raised three daughters, enjoying family camping, biking, hiking, active living and most of all spending time together. They inspire him to be the best he can be and to be an active change-maker for the good of our entire community.
A THRIVING CAREER
professional leader, self-starter, entrepreneur, creator, innovator, marketing and communications/media specialist
MISSION STATEMENT
Equality Meets Opportunity
Media
Founded BUZZLOCAL.TV in 2016, morphed from GingleLive. This is an active, successful local video news platform. To date the organization has interviewed over 2,000 people about the life and times of the City of Moncton. Also covering city hall council proceedings since 2016 with published, synthesized highlights reducing hours to 8-minute video summaries of each council meeting.
Startup Founder
Founded Gingle (2012), one of the world’s first mobile live streaming apps (prior to Facebook or Twitter). This evolved into a subscription model for not-for-profit (NFP) agencies called GingleLive which involved consultations with conferences in New York City, San Diego, Boston, and Las Vegas; participation on a panel of five experts on fundraising at the Foundation Centre on Fifth Avenue in NYC in front of a visiting delegation of Chinese NFP organizations; and a presentation to the founders of Charity: Water (in NYC).
Marketing
2003 Founded/managed marketing company
i communications inc., employing up to seven, running successful campaigns including for the Government of New Brunswick, the Anglophone East School District (producing the 32 page ACHIEVE magazine), the Town of Riverview, Enterprise Greater Moncton, The Greater Moncton International Airport, Crandall University among others.
Prior to launching i communications inc. Erik worked as a Story Producer for the Discovery Channel series the Frontiers of Construction for two seasons bringing massive global building projects to television as well as writing/producing a syndicated political satire series for CBC Radio New Brunswick - the Dormer Room.
International Experience
For
nine years Erik was an English Language coordinator at the Fuji
Electric Company in Japan. While there he wrote numerous articles for
various international publications and covered cultural aspects of the
Nagano Winter Olympics for MacLean's magazine as well as USA TODAY. For
six of the nine years he was a semi-professional mountain bike racer and
wrote a book about his adventures in Japan called Living North of Lucky which he toured in the Maritimes and Southern Ontario upon his return to Canada.
CUPE New Brunswick central bargaining resumes next week
On Saturday, August 28, hundreds marched in demonstrations of solidarity with front-line workers in 14 communities across New Brunswick. The marches came a week after the government and the union agreed to central bargaining on wages.
The Canadian Union of Public Employees (CUPE) and the New Brunswick government (Treasury Board) are scheduled to return to the central bargaining table on Tuesday, August 31.
On that date, less than a week will remain until Labour Day, the deadline CUPE New Brunswick president Steve Drost gave Premier Blaine Higgs to bargain fairly or face coordinated job action. On September 7, more than 22,000 CUPE members in the province will be without a contract and in a legal position to call a strike vote. Some members have not had a contract, or a raise, for more than four years.
CUPE’s 100-day ultimatum to the government followed years of frustrations at the bargaining table. After the Higgs Progressive Conservatives came to power in 2018, the relationship between union members and their government employers became increasingly strained. During the pandemic, front-line workers were lauded as heroes while their wages and working conditions worsened.
The Premier has been holding firm on a wage offer for public servants of zero for the first year and one percent for the following three years of a contract, so three percent over four years. Yet over the past four years, the Bank of Canada’s inflation calculator shows more than a nine percent increase. If workers accept the government’s three percent offer, they would effectively be taking a six percent pay cut.
CUPE rejects the government’s claim that the province does not have the money to pay its workers. “We need to stop throwing our money at large corporations that refuse to pay their fair share of taxes to fund the public services that have made their fortunes and invest in our people. It’s time to build an economy from the bottom up instead of waiting for the crumbs from the top down” reads a CUPE media statement.
CUPE’s Central Bargaining Team will consist of seven CUPE local presidents from Part I, II and III of the public service who bargain with Treasury Board, one observer from Part IV locals who bargain with provincial Crown corporations, CUPE Maritimes Regional Director Sandy Harding, CUPE New Brunswick President Steve Drost, and CUPE staff.
CUPE bargaining teams:
Part I
- Local 1190 – General Labour and Trades
- Local 1418 – Rehabilitation and Therapy and RCPO
- Local 1251 – Institutional Care and Services
- Local 1840 – Provincial Court Stenographers
Part II
- Local 1253 – New Brunswick Council of School District Unions
- Local 2745 – Education Support Staff
Part III
- Local 1252 – New Brunswick Council of Hospital Unions
Part IV
- Local 963 – Alcool NB Liquor
- Local 5017 – NBCC
- Local 5026 – CCNB
- Local 1866 – WorkSafe NB
In preparation for the bargaining next week, CUPE held a “bargaining summit” in Fredericton on Friday, August 27 that brought together bargaining teams from the four parts of the provincial public services and guest speakers from across Canada.
Read more NB Media Co-op coverage of CUPE NB’s 100-day campaign here.
Susan O’Donnell writes for the NB Media Co-op.
CUPE NB COULD HOLD STRIKE VOTE LABOUR DAY
With the start of school a few days away, a national election, and the spectre of a fourth wave of COVID-19, CUPE NB’s potential strike vote this Labour Day is easy to overlook.
You may have noticed however their provincial campaign on billboards and busses with the yellow and black fist. But make no mistake, the 22,000 members are ready to take action on the 100th day of their 100 day campaign demanding the Higg’s government settle long outstanding contracts. CUPE NB SCFP President Stephen Drost speaks with us to give some background, who just may be affected, and what they are hoping to avoid.
On se bat pour la justice sociale et économique. On lutte pour protéger les travailleurs qui fournissent les services essentiels au public du Nouveau-Brunswick. C’est une lutte entre David et Goliath, et la victoire dépendra de notre capacité à nous unir contre le géant.
Il est temps que l’on se prépare à l’action. On aura besoin de courage, de détermination et de solidarité. On a réussi dans le passé ; on peut réussir à nouveau, maintenant.
This is a struggle for Social and Economic Justice. This is a fight to protect the workers who provide essential services to the people of New Brunswick.
This is a fight between David and Goliath, and our success will depend on our ability to unite against this bully. We will need courage, resilience, and solidarity. We have done it before, and we can do it again.
Hello Sisters, brothers, and friends,
As you are aware September 7th is fast approaching, and the province has yet to offer a fair, respectful, or meaningful wage increase. The cost of living continues to rise while most of you continue to fall further and further behind. This is negatively impacting you, your family, and the communities you live in. With less money each year coming into your home, you have less spending ability in your local businesses and thus it is hurting...
See Morehttps://nbmediacoop.org/…/cupe-new-brunswick-bargaining-up…/
Central bargaining resumes next week: an overview of the current situation published by the NB Media Co-op.
https://nb.cupe.ca/about-us/cupe-nb-executive/
CUPE New Brunswick
91 Woodside Lane
Fredericton, NB, E3C 0C5
(506) 458-8059
stephendrost1418@gmail.com
CUPE NB is led by its members, for its members. It is a democratic organization. The executive of the Division, made up of nearly 20 members elected by members of the Provincial Congress, makes day-to-day decisions.
Secretary-Treasurer / Secrétaire-trésorière | Kimberly Copp kimcopp@nb.sympatico.ca |
Local 963 N.B. Liquor Corporation |
Jamie Agnew 963prez@gmail.com |
Local 1190 General Labour and Trades, Part I | Brent Wiggins bwiggins@nb.aibn.com |
Local 1251 Institutional Care and Services | Chris Curran cdcurran1@live.ca |
Local 1252 N.B. Council of Hospital Unions |
Norma Robinson normamrobinson07@gmail.com |
Local 1253 N.B. Council of School District Unions |
Iris Lloyd president@1253.ca |
Local 1418 Rehabilitation and Therapy and RCPO | |
Local 1840 Provincial Court Stenographer | Alice Losier alicesimone@hotmail.ca |
Local 1866 Workplace Health, Safety and Compensation Comm | Ryan Wentworth ryanwentworth@gmail.com |
Local 2745 Educational Support Staff | Theresa McAllister theresa.mcallister@nbed.nb.ca |
Local 5017 NB Community College |
Pierre Bourgeois pbourgeois1@outlook.com |
Local 5026 Collège communautaire du N-B. |
Brian Nadeau nadeaubrian@hotmail.com |
N.B. Council of Nursing Home Unions | Sharon Teare sharente@nb.sympatico.ca |
N.B. Committee of Municipal Workers | Jill Greene Jillgreene24@gmail.com |
N.B. Community Service Unions | Laurie Anderson jodylaur@hotmail.com |
Vice President-at-large / Vice-Président hors cadre | Leah Logan leahlogan69@hotmail.com |
Vice President-at-large / Vice-Président hors cadre | Serge Plourde ksplourd@rogers.com |
N.B. pension managers reap bonuses despite big losses
The New Brunswick Investment Management Corporation disclosed in its annual report released Wednesday that a number of its executives were paid the performance bonuses, even though the funds they supervise lost more than 18 per cent of their value in the same year.
The rest of the civil service was placed under a strict governmentwide freeze on bonus payments and similar bonuses were cancelled at other Crown corporations, such as NB Power.
The corporation defended the bonuses, noting they were much less than the $1.3 million paid out a year earlier. Additionally, these payments were meant as a reward for good results over a four-year period despite poor results in 2008-09.
"The previous three fiscal years had positive net value added results which help to offset the fiscal 2008-09 performance," said the corporation in explaining the bonus.
However, the report also made it clear that losses in 2008-09 were so bad they wiped out all of the gains in the previous three years and then some, after inflation.
The annual report also states that after the market collapse, the corporation decided in December 2008 to freeze salaries in 2009-2010.
The Department of Finance said it plans to review the operation of the investment corporation, including its bonus program, in the near future.
Progressive Conservative MLA Bruce Fitch, the opposition's finance critic, said the department's review is "too late." Fitch said in a release, "this type of thing sickens New Brunswickers."
Fitch said in an interview on Thursday that he was under the impression that those bonuses were on hold.
"It wouldn't have been the end of the world if the bonuses were deferred or not paid for a year or two, given the circumstances," Fitch said.
Lost $1.6B in market crash
N.B. Auditor General Mike Ferguson recommended in his recent annual report that the bonus structure at the New Brunswick Investment Management Corporation be reviewed. ((CBC))
It had $8.7 billion in assets under its management at the start of the 2008-09 fiscal year, but lost $1.6 billion of that when stock markets crashed last fall.
The corporation has paid out modest bonuses to certain key executives for several years, but more recently upped the amounts dramatically.
Employee bonuses hit more than $1.3 million in fiscal 2007-08, up from the $134,000 paid out in 2000.
John Sinclair, the corporation's president, is the highest paid employee in the New Brunswick government, earning more than $475,000 last year.
Auditor general questioned bonuses
Auditor General Mike Ferguson raised questions about the bonuses being paid to the investment managers in his last report. He recommended the Department of Finance step in and set some kind of limit on what can be paid out.
"We felt the best approach and still feel the best approach to determining the total amount would be to have a formula agreed on between the province and the corporation," said Ferguson on Wednesday.
CBC's Journalistic Standards and Practices
NB Power CEO defends bonus, 'a contract is a contract'
The president of NB Power is defending his salary and bonus package, which came under fire last month in the legislative assembly, as just a part of his contract.
The Opposition Conservatives grilled the Liberal government in December over a bonus the board of directors paid to David Hay at a time when other bonuses are being postponed.
Hay said when Bernard Lord's Conservative government hired him early in 2004, he was offered a five-year contract with annual bonuses.
"I didn't ask for it. That's what I was provided. I didn't negotiate it. That's what was provided. And I'm an old lawyer by training, and a contract is a contract," Hay told a legislative committee on Wednesday.
Hay said 2007-08 was a spectacular year for NB Power when the company won a $338 million legal settlement with Petroleos de Venezuela, S.A., the country's state-owned oil company, over the failed Orimulsion fuel deal.
He said the Point Lepreau nuclear station ran well and the company was named a top employer. So the company's board decided to pay bonuses to him and several top executives.
Conservative MLA Bruce Northrup said New Brunswickers wanted to know the amounts.
"They would like to know what these bonuses were, as far as the exact dollar and everything, I think they have the right to know as New Brunswickers," Northrup said.
Hay said privacy rules prevented him from naming the other bonuses but he offered to reveal his own.
Northrup didn't ask for it. Hay told reporters after the committee that it was $96,000 on top of his $375,000 salary.
CBC's Journalistic Standards and Practices|
https://www.cbc.ca/news/canada/new-brunswick/cupe-pension-lawsuit-intervene-1.3623794
CUPE wants to intervene in public service pension lawsuit
Unions maintain switch to shared risk pension plan violates right to freedom of association under Charter
The Canadian Union of Public Employees wants to intervene in a lawsuit brought by another union against the province of New Brunswick over changes to public service pensions.
The Professional Institute of the Public Service of Canada initiated the lawsuit after the provincial government converted its public service pension plan into a shared-risk pension plan.
CUPE said the change "significantly reduced" pension benefits, the security of benefits and barred any collective agreement provisions that could improve pension benefits in the future.
- 'Slow down' move to shared-risk pension, CUPE says
- CUPE official backs pension reforms despite protests
- Does New Brunswick have the answer to Canada's pension funding crisis?
CUPE announced Thursday it has served the provincial government with notice it wants to intervene in the lawsuit.
"The rights of CUPE members and many other public sector workers were violated when the government unilaterally imposed pension changes on workers, in violation of their right to free collective bargaining," said Daniel Légère, the CUPE New Brunswick president, in a news release.
Légère contends the pension changes violate a members' right to have freedom of association under the Canadian Charter of Rights and Freedoms.
"CUPE fully supports this court challenge and will intervene to defence our members' rights," he said in the statement.
It is up to the court to decide whether a party is granted intervener status in a lawsuit brought by another party.
CUPE official backs pension reforms despite protests
Gordon Black says shared-risk pension plan still the best option for workers
A top New Brunswick union leader says he has no regrets about signing on to the province's new shared-risk pension model, which is facing mounting criticism from retired civil servants.
Finance Minister Blaine Higgs has been confronted by hundreds of angry public servants at a string of public meetings in the last month designed to inform retirees about the proposed changes to the pension system.
Many of the retirees are complaining they have not been properly consulted on the switch to a shared-risk model.
Gordon Black, a CUPE official, said he has no problems with the province's shared-risk pension system. (CBC)
Gordon Black, the regional director of the Canadian Union of Public Employees, said he understands why civil servants are worried about the pension changes, but he said the new plan is still the best option.
"There's potential loss here for them and they're on fixed income and they retired expecting something until they die and that's changing. But the alternatives could be, in my opinion, worse," he said.
Last year, when Premier David Alward announced the new pension model, hospital workers, who are part of CUPE, were among the unions that signed onto the shared-risk plan.
Since that time, others have also adopted the shared-risk model, including the cities of Saint John and Fredericton. As well, New Brunswick has hosted a national policy conference on the future of pensions.
Under the plan, retirees will not get cost-of-living increases in years where the markets perform poorly.
The provincial government has said only in an extreme, depression-style crash would benefits be reduced.
The system would also see those cancelled increases paid back to retirees later when the markets recover.
During the public meetings, Higgs has told the audiences that he is embarrassed about the poor communication surrounding the switch. But he said the changes are necessary for the financial health of the province and the long-term survival of the pension plans.
Pension reforms needed
Black said he has come to understand what is motivating the provincial government to make the pension changes.
"It took me a long time to accept the fact that the government is up against it financially," the CUPE leader said.
Finance Minister Blaine Higgs faced hundreds of angry civil servants in the last week over the proposed pension reforms. (CBC)
But Black said large pension deficits and retirees who are living longer and collecting more in pensions are putting the whole system at risk.
He said it's better to adopt a system that won't see benefits cut unless there's an extraordinary depression-style market crash and even then benefits would eventually catch back up.
"When things stabilize and come back, retroactive payments are made to retirees to give them what they should have got in the first place," he said.
In fact, Black said hospital workers who have retired since the plan was adopted last year have seen better pension payments under the new plan than they would have under the old.
The finance minister told crowds showing up to hear about the pension changes that in the last provincial budget he had to book $53 million in additional liabilities because of new mortality levels in the pension program.
The Public Service Superannuation Act (PSSA), which covers employees who work directly for government departments and NB Power, currently has a $1 billion shortfall.
It included 13,441 pensioners as of March 31, 2012. Their average annual pension was $20,603.
https://www.cbc.ca/news/canada/new-brunswick/alward-overhauls-public-pension-system-1.1147160
Alward overhauls public pension system
Increased contributions, longer retirement provisions will be phased in
The New Brunswick government is overhauling its pension system that will see increased contribution levels and higher age of retirement phased in slowly over a period of time.
Premier David Alward announced the redesigned pension plan at a news conference on Thursday in Fredericton, along with several union representatives who support the changes.
Alward said the existing pension plan is not sustainable.
"While some plans have acute funding problems, many plans as they currently exist are not sustainable in the long term," he said.
"It is not fair or realistic to encourage New Brunswick workers to rely on a pension scheme which is not sustainable. And it is not fair or realistic to expect New Brunswick taxpayers to backstop huge swings in pension valuations because of the performance of pension plan investments."
The pension changes will not cut the benefits in place for retirees and it will "likely" lead to "marginal" increases to employee contributions.
Pensions will be based on an "enhanced career average" of earnings rather than the employee’s final salary.
The retirement age will also be moved upward, but it will be phased in. The targeted retirement age would be moved to 65 from 60 over a 40-year period.
The provincial government’s reforms would also see cost-of-living increases conditional on the pension plan’s performance.
There would be a provision that would still allow for cost-of-living increases in years where the pension plan was making money to account for any years where the increases were not imposed.
The various changes are slated to be phased in, according to the premier.
The New Brunswick is modeling its pension reform after the Dutch model, Alward said.
Protecting against failure
The Alward government struck a pension review committee to examine public sector plans last September.
The importance of these pension reforms, Alward said, can be found when looking at some high-profile failures in the province.
"Unfortunately, as we saw in the case of Nackawic and Fraser Paper, too often a ‘guaranteed pension’ is not actually guaranteed at all," he said.
"Those workers and pensioners found out that what they thought was a guaranteed pension plan was only as strong as their company’s ability to pay for it. When the company failed, the pension failed with it."
Workers from the St. Anne-Nackawic pulp mill launched a legal fight to avoid cuts to their pensions. The Supreme Court of Canada ultimately did not hear the workers' appeal.
Retired Fraser Papers workers saw their pensions slashed by one-third when the company went bankrupt.
An element of the provincial pension reforms is managing the security and risk of plans.
The changes are intended to include an investment mix that is less volatile to swings and ensure adequate contribution levels.
The new pension rules are taking into account a changing workforce demographic.
Canadians are living on average four years longer than the 1950s and are retiring seven years earlier.
"To put it simply, our pension system was designed in a time when people worked longer and lived shorter lives," Alward said.
Opposition agrees
While pension reform is generally a thorny issue, the province's opposition parties are giving the plan thumbs up.
"The pension liability to the taxpayers of New Brunswick is a major issue," said Liberal MLA Donald Arsenault.
"It needs to be addressed. I commend the Premier for putting together a task force to bring forward recommendations on a new path forward."
"I think it offers a really good way to offer safe and reliable pensions for workers in New Brunswick," said NDP Leader Dominic Cardy.
The plan hasn't won over everyone just yet. The Canadian Federation of Independent Business said it's somewhat optimistic but the devil is in the details.
The CFIB is voicing concerns over the length of the transition period and the cost to taxpayers.
Unions support reforms
The Alward government’s pension reforms also got a boost of support from some public and private sector unions.
The New Brunswick Union, the Canadian Union of Public Employees Local 1252 and the New Brunswick Pipe Trades will be using the new pension model for some of their pension plans.
Marilyn Quinn, the president of the New Brunswick Nurses Union, said in a statement the model would make the pension plan sustainable.
"Most importantly, we believe this solution will provide retirement security for nurses, paramedical and specialized health-care professionals working in our two regional health authorities," she said in the statement.
Gary Ritchie, the administrator of the New Brunswick Pipe Trades pension plan, said in a statement he was pleased to work collaboratively with the provincial government on the pension reforms.
"The new rules will allow us to recognize the advantages that our plan provides by being one of the few pension plans in Canada to be more than 100-per-cent funded on a going-concern basis," he said in the statement.
"These rules will provide our plan members with the security and benefit levels they deserve, while providing the sustainability and affordability that the plan's sponsors require in an increasingly competitive global environment."
Pension changes will ensure 'long-term integrity'
Finance Minister Blaine Higgs says task force report will be released this session
Changes to provincial pension plans that will help address the plans' deficits and ensure their sustainability are coming soon, says the finance minister.
The provincial task force on protecting pensions is expected to report to the government during this session, Blaine Higgs said Tuesday as part of his budget speech.
The task force will recommend how to put the appropriate rules and regulations in place for the long-term sustainability of existing pension plans, both public and private, he said.
"Our goal is to ensure that employee benefits that have been earned to date will not be negatively affected by future changes while we separate pension reform from the collective bargaining process," he said.
The provincial government will seek ways to expand the coverage of affordable, sustainable pension plans in New Brunswick to residents who currently do not have adequate pension plan coverage, said Higgs.
The changes will be fair to both employees and taxpayers, he said.
"Our government’s vision is that New Brunswickers should have the opportunity for a safe and secure retirement," the finance minister said.
"We must also provide assurance to pension contributors that the long-term integrity, due diligence and rigour necessary in the business and financial operations of the system are maintained at a high level."
The Alward government launched a review of public sector plans in September. It is expected to include consultation with the public, including employees, contributing employers, union representatives and pensioners.
The same task force is also reviewing private sector plans.
Higgs said pension plans are facing deficits because people are living longer after retirement than previously predicted and market values have been lower than expected.
"Those are the issues we're trying to address because if we don't, it will be a problem," he told reporters. "We will fix it...We have a program that will do just that."
Saint John pension reform fix pitched by consultant
City's pension deficit is actually $342M, says Susan Rowland
Saint John council could cut its pension payments by $10 million a year by switching to a shared-risk plan, a consultant told the city on Monday night.
Susan Rowland, the chairperson of a pension task force that has been reviewing the city’s beleaguered pension plan, offered a blunt assessment of Saint John’s situation at a council meeting on Monday.
"This is the worst pension plan I've ever seen," she told councillors.
"Your pension plan is not in good shape at all."
Saint John councillors listened to Susan Rowland's pension reform proposal on Monday night. (CBC)
She said the Saint John plan is the victim of a perfect storm — retirees living far longer than expected, low investment returns, and new rules which make it mandatory to prepare for even lower investment returns in future.
Rowland also said the actual pension plan deficit is much higher than Saint John residents may believe.
The official pension deficit stands at $195-million, but Rowland said the more accurate figure would be $342 million.
Rowland said the city has two options, either to convert the pension to a defined contribution plan or adopt a shared-risk model.
The consultant is advocating a shared-risk pension plan, similar to a new model adopted by the provincial government.
The proposed pension plan would share the risk for future deficits between workers and the city and opens the option to temporarily reduce benefits if the fund falls behind.
In the meantime, the city will have to pay $12 million a year for 15 years to retire the deficit.
Councillors will hear more about the proposed new plan at a special meeting on Thursday.
Rowland’s plan may not be a foregone conclusion.
Coun. Bill Farren said he is going to take some time to consult with others before he decides whether he will endorse the proposal.
Coun. Susan Fullerton, who has said in the past she would like to examine offering city employees a RRSP or defined contribution plan, also sounded critical on Monday.
"Why should the taxpayers suffer this double-whammy? Have they not suffered enough and will they not suffer enough for the next 10 to 15 years?" she said.
The provincial legislature passed a bill before it adjourned for the summer that repealed the Saint John Pension Act. That move gave Saint John greater autonomy in handling its pension crisis.
With that new power over its pension plan, Saint John councillors requested Rowland lead a task force that would recommend a solution to the woes facing the city's pension plan.
Rowland was involved with a similar pension task force that recommended a shared-risk model for the provincial government.
When the provincial model was announced, Premier David Alward said these reforms would not cut the benefits that are in place for retirees but it will likely lead to "marginal" increases to employee contributions.
Other changes include, basing pensions on an "enhanced career average" of earnings rather than the employee’s final salary.
Further, the retirement age will be moved to 65 from 60 over a 40-year period.
In May, the New Brunswick Union, the Canadian Union of Public Employees Local 1252 and the New Brunswick Pipe Trades said they planned to use the new pension model for some of their pension plans.
https://www.cbc.ca/news/canada/new-brunswick/saint-john-approves-pension-reform-1.1209252
Saint John approves pension reform
City staff will now work with employee groups to convert the pension plan
Saint John councillors voted to scrap its controversial employee pension plan on Monday night and are now planning to replace it with a system recommended by a special task force.
Saint John council adopted a recommendation made by Susan Rowland, the chairperson of the pension task force, to adopt a shared-risk model. (CBC)
A week after Susan Rowland, the chairperson of a pension task force hired by the city, called Saint John’s pension plan the worst she had ever seen, councillors passed a motion to move in a new direction.
Councillors adopted the so-called shared-risk model recommended by the task force, which is similar to the plan adopted by the provincial government.
The proposed pension plan would share the risk for future deficits between workers and the city and opens the option to temporarily reduce benefits if the fund falls behind.
But the pension reform package isn’t coming without an element of immediate financial pain.
The shared-risk pension plan will mean Saint John politicians must find $12 million every year to pay down the pension fund deficit, which now stands at $161 million.
The pension plan deficit is $35 million lower than it would have been had council stuck to the existing plan where future financial risk is not shared with city workers.
Coun. David Merrithew said he felt a tough decision needed to be made to deal with the pension problem.
"This debt that we have is real, it's tangible, and it's ours and we have to deal with it," he said.
The city’s pension deficit under the old system had been estimated at $195 million.
Mayor Mel Norton asked for a special pension task force to review the beleaguered pension plan shortly after May’s election and the final report was issued last week.
Norton and many councillors were elected on a promise to get the city out of its financial mess.
Groups applaud vote
Paul Stackhouse, the president of the Saint John Firefighters' Association, applauded the council's decision to approve a pension reform package.
Under the new pension plan, city workers will be giving up some of their benefits. For instance, police and firefighters will have to work longer before retiring and will have higher payroll deductions.
But representatives from both groups were applauding the council’s decision on Monday night.
But Paul Stackhouse, the president of the Saint John Firefighters’ Association, said the pension decision ends a long process of trying to reform the system.
"I applaud this council for having the courage to step forward to try to resolve this pension issue," Stackhouse said.
"We've been working on this a long time. I applaud them for finally taking the courage to move forward and to get this pension issue resolved."
Jamie Hachey, the president of the Saint John Police Association, said the council’s decision showed "vision."
Failed attempt to delay
The pension vote, however, was not unanimous among the city's politicians.
Coun. Susan Fullerton said she hoped for better terms on the pension deal.
She attempted to delay the vote until another pension expert could review the plan.
"I think we would be very remiss if we did not get a second opinion. If I'm going to get my house painted I get three estimates," Fullerton said.
But Fullerton’s attempt to stall the vote failed.
The city will now draft a memorandum of understanding with its employee groups to convert the pension plan to the new model.
https://www.cbc.ca/news/canada/new-brunswick/saint-john-pension-reform-remains-uncertain-1.1167008
Saint John pension reform remains uncertain
Mayor Mel Norton says city officials will be busy working on a solution this weekend
Saint John council ran into a new roadblock on the path to converting its pension plan to a less expensive, shared-risk model during a council meeting on Thursday evening.
The pension reform deal cannot be finalized until there is an agreement with city workers on how to provide long-term disability coverage to 64 workers who are currently out and receiving those benefits.
The new pension model that Saint John is preparing to adopt does not allow for long-term disability coverage.
The city now has to find an outside insurer quickly because council must pass its 2013 budget on Monday.
Saint John Mayor Mel Norton said city staff will be working hard over the weekend to finalize the pension reform deal. (CBC)
Councillors left Thursday night's meeting to continue discussing their options behind closed doors for more than an hour.
They emerged and voted to convert the pension plan subject to a solution to the question of long-term disability benefits.
Saint John Mayor Mel Norton said there will be meetings with city unions through the weekend, if necessary, to work it out.
"We're going to arrange co-operatively and collaboratively to ensure that there's long term disability coverage there," Norton said.
Saint John has paid almost $2 million out in long-term disability payments in 2012.
That will be the starting point for new coverage, making the true cost of this pension deal an $18 million annual expense to the city.
Coun. Susan Fullerton said on Thursday she wants an independent lawyer to review the document prepared by the Toronto firm that also represents the province and city workers.
"You need to have two separate lawyers, one representing each side, to have a fishing shack change hands and here we are with your esteemed firm, which is also representing [the Canadian Union of Public Employees]," Fullerton said.
Saint John voted to adopt the new shared-risk plan, similar to the plan adopted by the provincial government, earlier in December.
The pension plan, which is still being finalized, would share the risk for future deficits between workers and the city and opens the option to temporarily reduce benefits if the fund falls behind.
The shared-risk pension plan will mean Saint John politicians must find $12 million every year to pay down the pension fund deficit, which now stands at $161 million.
The city’s pension deficit under the old system had been estimated at $195 million.
Large municipal pension plan promoted for province
Saint John Mayor Mel Norton says city would need to wait before joining a larger pension plan
New Brunswick municipalities should consider forming a single, province-wide pension plan, according to the chairperson of New Brunswick's pension task force.
Susan Rowland led a pension reform task force created by the provincial government, which designed a shared-risk model that has been adopted by the provincial government and three unions.
Rowland led a similar initiative in Saint John that recommended the city adopt a shared-risk plan.
Susan Rowland, the chairperson of the province's pension task force, would like to see municipalities join a large shared-risk plan. (CBC)
The pension expert is hoping that other municipalities will see the wisdom in a shared-risk pension plan and the merit of a larger system.
She said she hopes to see a single plan that covers all larger municipalities, similar to plans in Ontario and British Columbia.
The Ontario Municipal Employees Retirement System, for instance, is a plan grouping 947 employers and more than 400,000 municipal workers and retirees.
The pension changes backed by Rowland’s provincial task force will not cut the benefits in place for retirees and it will "likely" lead to "marginal" increases to employee contributions.
The shared-risk plan means pensions will be based on an "enhanced career average" of earnings rather than the employee’s final salary.
When Premier David Alward announced the provincial plan in May, he noted the retirement age will also be moved upward, but it will be phased in. The targeted retirement age would be moved to 65 from 60 over a 40-year period.
The provincial government’s reforms would also see cost-of-living increases conditional on the pension plan’s performance.
There would be a provision that would still allow for cost-of-living increases in years where the pension plan was making money to account for any years where the increases were not imposed.
As interest in a New Brunswick-wide experiment grows, the provincial government has still not converted its own civil service to the shared-risk model.
Human Resources Minister Troy Lifford, however, announced a national summit on pension reform this February in Fredericton
Saint John considers options
Saint John has voted to adopt the shared-risk pension model. But the city’s beleaguered pension plan has been a source of controversy in the last few years as its deficit continued to grow.
Saint John Mayor Mel Norton said the city would likely avoid joining a province-wide municipal pension plan in the short-term.
Norton said the city's plan will have to recover before it can join a group plan.
"At a point in time, when the Saint John plan is healthy enough again — and the shared-risk model will take us a large step towards that — then Saint John might be in a position to join that kind of plan," he said.
"And that could have benefits in terms of reducing the administrative costs of the pension plan."
The argument for a larger plan is that it can cut administrative costs but it could also offer better investment opportunities.
https://www.cbc.ca/news/canada/new-brunswick/saint-john-pension-deal-signed-1.1285046
Saint John pension deal signed
4 city unions have agreed to new shared-risk model
The City of Saint John has a new pension model for its employees.
The municipality and its four unions, representing police, firefighters, inside and outside workers, all signed a memorandum of understanding on Friday morning to switch to a shared-risk pension plan.
The ceremony at the mayor's office followed late night negotiations in Fredericton with a provincial mediator related to issues involving long-term disability.
Council had previously voted to pay 100 per cent of the long-term disability costs for ill and injured workers for the next two years at an emergency meeting held on Thursday afternoon
Long-term disability is not covered under the new shared-risk model.
The city’s budget process had been stalled until councillors could determine how they would provide long-term disability coverage to 54 workers, who are currently out of work and receiving those benefits.
Mayor Mel Norton says the deal averts a financial crisis.
"We would have triggered multi-million dollar pension payments. We would have eliminated all of the spending that's now going to be able to go into roads or recreation. We would have to do further budget cuts, I would say, across departments."
Under the new shared-risk model, the city and its workers will share the risk for future deficits. It also opens the option to temporarily reduce benefits if the fund falls behind.
The media and the public were not made aware of the emergency council meeting Thursday, where a number of resolutions, including coverage of 100 per cent of the costs of the disability plan for the next 24 months, were adopted.
Coverage of long-term disability benefits was said to be the final sticking point before moving ahead with a shared-risk pension model.
The city's four unions — International Association of Firefighters Local 771, the Saint John Police Association, the Canadian Union of Public Employees Local 18 and the Canadian Union of Public Employees Local 486 — all signed on.
Saint John councillors had spent hours debating how they would move forward with the pension reform package this week.
Without a vote, it had appeared the city would be unable to pass its 2013 budget before the end of 2012.
Saint John politicians voted in December to adopt a new shared-risk pension plan, similar to the scheme approved by the provincial government.
The shared-risk pension plan will mean Saint John politicians must find at least $12 million every year to pay down the pension fund deficit, which now stands at $161 million.
The city’s pension deficit under the old system had been estimated at $195 million.
Shared-risk pension model recommended for Fredericton
Committee will make presentation during special council meeting on Monday night
The City of Fredericton should move to a shared-risk pension plan for its employees, a committee will recommend to council at a special meeting on Monday night.
The committee has been reviewing the matter for about four months and believes a shared-risk model will benefit everyone, according to Coun. Mike O'Brien, the chairperson of the city's superannuation board.
"The amount that you're contributing is known up front for the employees," he said.
"It's also known for the city, which is great for budgeting because now we can predict how much we have to put in each year as opposed to wondering — do we have to sit down and negotiate with all our unions again next year."
Fredericton Coun. Mike O'Brien says a shared-risk model benefits the employees and the employer.
O'Brien says four out of six employee groups with the city are supporting the new plan.
The two remaining unions — firefighters and police — were expected to discuss the matter over the weekend, he said.
The police union wants the city to slow down, said Andrew Dawson, spokesman for Local 911.
It has filed a complaint to the New Brunswick Labour Relations Board for an injunction to prevent the city from carrying out its proposed changes.
"We would agree that a sustainable pension plan is a paramount concern to everyone involved, but I'm a big believer in trust but verify, and I think the taxpayers and the City of Fredericton should trust and verify as well," Dawson said.
"Verify the city's facts and information before we ram changes to the pension plan at city hall, tonight," he said.
The lLabour and Relations Board will hear the police association's complaint on Wednesday.
O'Brien says the unions have had plenty of time to discuss the problems.
The city's pension was underfunded by about $59 million during its last valuation and now is the time to act, he said.
"The key changes are that the retirement age, that you can retire without a penalty, goes up five years, so our typical employees now, if they have the required years of service, can retire at 60, and fire and police can retire at 55. Those both go up five years to 60, and 65."
If the changes go ahead, future retirees will also see a 10 per cent drop in their base pension.
Council will discuss the so-called Bylaw Respecting Administration and the City Council at 5:30 p.m.
Saint John adopted shared-risk model
Premier David Alward unveiled a shared-risk plan for provincial government employees last May.
Under the plan, the age of retirement will be moved to 65 from 60 over a 40-year period, contribution levels will increase and cost-of-living increases will be conditional on the plan's performance.
Saint John switched to the shared-risk pension plan on Jan. 1 on the advice of Susan Rowland, the chairperson of the provincial pension task force. The city's pension deficit had been estimated at $195 million.
Rowland has said she believes all municipalities should join a province-wide, shared-risk pension plan.
It would protect pensions for workers and offer stability to employers by cutting administrative costs and offering better investment opportunities, she has said.
There are already 44 medium and small New Brunswick municipalities sharing a single pension plan.
https://www.cbc.ca/news/canada/new-brunswick/fredericton-approves-shared-risk-pension-plan-1.1385857
Fredericton approves shared-risk pension plan
Capital city's old pension system has a $60M deficit
Fredericton councillors unanimously approved a plan on Monday to convert the city’s pension plan to a shared-risk model, which has been promoted by the provincial government.
Councillors held a special meeting on Monday to discuss the move to a shared-risk pension plan. Saint John switched its troubled pension plan to a shared-risk system on Jan. 1.
The move to a shared-risk plan will mean city employees will have to work longer with fewer guarantees.
The move also means changes to the cost-of-living adjustment for city pensioners.
Fredericton's current pension plan was in a $60-million deficit.
Andrew Dawson said the police union has filed a motion to the Labour and Employment Board in an effort to slow down the pension reforms. (CBC)
Unions representing the city’s police officers and firefighters still remain holdouts to the new pension deal.
Andrew Dawson, a representative for Local 911, which represents the police union, said people need time to process all of the information.
The police union has turned to the province's Labour and Employment Board in search of a way to stop the switch.
The board will hear the police association's complaint on Wednesday.
Wade Keirstead, who represents the union for technical and professional employees, said his group signed onto the reforms but he said it wasn't an easy decision.
"The biggest impact is the loss of early retirement... We say early retirement, people would still have 35 years into their career but it’s certainly not something that people are looking forward to," he said.
Whether the unions agree with the reforms, the city has moved forward with the changes.
O’Brien said he would like all of the city’s unions to back the pension reform.
"They are now part of the plan. But we would certainly like them as a willing partner," he said.
Pension reform
Premier David Alward unveiled a shared-risk plan for provincial government employees last May and has been talking about the merits of other organizations adopting the scheme.
Under the plan, the age of retirement will be moved to 65 from 60 over a 40-year period, contribution levels will increase and cost-of-living increases will be conditional on the plan's performance.
Susan Rowland, the chairperson of the provincial pension task force, has said she believes all municipalities should join a province-wide, shared-risk pension plan.
It would protect pensions for workers and offer stability to employers by cutting administrative costs and offering better investment opportunities, she has said.
There are already 44 medium and small New Brunswick municipalities sharing a single pension plan.
Shared-risk pension info sessions to be held for retirees
7 meetings for public service pensioners start Wednesday
The Alward government plans to host seven regional information sessions on the proposed shared-risk pension model for public service retirees, starting on Wednesday.
"We want retirees of the PSSA [Public Service Superannuation Act] to get the right information on the challenges facing the current plan and how a more affordable and secure option is needed going forward," Finance Minister Blaine Higgs said in a statement late Tuesday afternoon.
The government announced last May an overhaul of its pension system that would see increased contribution levels and higher age of retirement phased in slowly over a period of time.
The pension changes will not cut the benefits in place for retirees, officials have said.
But under the current model, the risk of any market downturns is borne by the provincial government alone.
Under the reforms, the risk would be shared by both sides.
In addition, the reforms would see cost-of-living increases made conditional on the pension plan's performance.
Last year, a number of public service unions that have defined contribution pension plans agreed to adopt the shared risk model, but so far none of the unions with much richer defined benefit plans have followed suit.
The PSSA plan covers employees who work directly for government departments and NB Power and included 13,441 pensioners as of March 31, 2012. Their average annual pension was $20,603.
In addition the PSSA has 19,611 active contributors.
"The province has an obligation to consider the long-term sustainability of the pension plan both for current and future retirees," Higgs said in the statement.
The PSSA currently has a $1 billion shortfall, which is expected to get worse, he said.
"With people living longer after retirement and interest rates at historically low levels, action needs to be taken today."
The New Brunswick Union, the Canadian Union of Public Employees Local 1252 and the New Brunswick Pipe Trades will be using the new pension model for some of their pension plans.
The Opposition Liberals and NDP expressed early support for the changes, although Liberal Leader Brian Gallant has expressed concerns that existing retirees should not be affected by any reforms.
The information sessions will include a presentation outlining the PSSA's challenges and how the proposed shared-risk model will affect retirees, said Higgs.
Government officials will be available to answer questions, he said.
Sessions will be held in:
- Saint John, April 17, 1 p.m.-3 p.m., New Brunswick Community College gymnasium, 950 Grandview Ave.
- Fredericton, April 17, 6 p.m.-8 p.m., Fredericton Convention Centre, Pointe-Sainte Anne rooms A and B, 670 Queen St.
- Moncton, April 18, 1 p.m.-3 p.m., Moncton Lions Club, 55 Mark Ave.
- Miramichi, April 18, 6 p.m.-8 p.m., New Brunswick Community College gymnasium, 80 University Ave.
- Bathurst, April 19, 1 p.m.-3 p.m., Collège communautaire du Nouveau-Brunswick amphitheatre, Room 286C, 75 Youghall Dr.
- Campbellton, April 19, 6 p.m.-8 p.m.: Collège communautaire du Nouveau-Brunswick gymnasium, 47 du Village Ave.
- Edmundston, April 20, 1 p.m.-3 p.m.: Clarion Hotel, Banquet Room, 100 Rice St.
Higgs faces angry retirees over pension changes
Apologizes for lack of consultation on proposed shared-risk model
New Brunswick Finance Minister Blaine Higgs apologized to a roomful of angry retirees in Saint John on Wednesday, acknowledging government has not properly consulted them over pension plan changes.
"We messed up in the communication," said Higgs. "So we're trying to fix that."
Higgs is barnstorming New Brunswick, visiting seven cities in four days to try and reassure retired civil servants the province's new shared-risk pension model will not hurt them and that the changes are necessary.
But suspicion and anger among the estimated 400 people who attended the first meeting in Saint John ran high, with several accusing the provincial government of imposing changes without consultation or negotiation of any kind.
"I do not want the government to reflect that they have consulted with us because they have not," said Deborah McCormack to a rousing ovation.
McCormack is a former health department employee who has been organizing opposition to pension changes.
Higgs faced similar hostility from the estimated 1,000 people who gathered for the information session in Fredericton on Wednesday night.
Will lose protection against inflation
Several hundred people attended the information session in Saint John on Wednesday. (Robert Jones/CBC)
Under the current plan, the risk of any market downturns is borne by the provincial government alone. Under the reforms, the risk would be shared by both sides.
The proposed model, unveiled last May by Premier David Alward, also includes increased contribution levels and higher age of retirement phased in slowly over a period of time.
Government officials have previously said the pension changes would not cut the benefits in place for retirees.
But a government actuary at the Saint John meeting acknowledged cost of living increases will be eliminated for pensioners and instead be dependent upon market performance.
Higgs did not disagree with the angry crowd, saying government communication of pension changes "left a lot to be desired."
He promised co-operation going forward, but warned financial problems with the province's various pension plans require significant changes.
The Public Service Superannuation Act (PSSA) currently has a $1 billion shortfall, which is expected to get worse with people living longer and interest rates at historically low levels, Higgs has said.
The PSSA plan covers employees who work directly for government departments and NB Power and included 13,441 pensioners as of March 31, 2012. Their average annual pension was $20,603.
In addition the PSSA has 19,611 active contributors.
The government wants to move the $4-billion PSSA plan to the shared-risk model first, followed by the teachers' $4.2-billion plan, the crowd was told.
The government hasn't had time to deal with the teachers' plan yet, officials said, to boos and cat calls.
Wants to convert 7 plans
Currently the government sponsors seven defined benefit pension plans for various employee groups, which it is hoping to transform into less expensive shared-risk plans.
Several unions that belonged to cheaper defined contribution pension plans signed onto the reform right away, but the province is now moving to force others in as well.
Combined, the seven defined benefit plans cover nearly 57,000 current and former government employees, a group that represents 11 per cent of the entire voting age population in the province.
Higgs listened to a litany of complaints about a lack of information from government about what the changes will mean and attempts to portray pensioners as spoiled and privileged.
"I find it especially distasteful having been someone who earned my pension in Fredericton to be referred to as a whiner by someone who speaks on behalf of government," said retiree Sharon MacFarlane, a former vice-president of finance at NB Power.
"As a government employee, we take part of our compensation now and we take part of it later. That's the deal."
Meetings will also be held in:
- Moncton, April 18, 1 p.m.-3 p.m., Moncton Lions Club, 55 Mark Ave.
- Miramichi, April 18, 6 p.m.-8 p.m., New Brunswick Community College gymnasium, 80 University Ave.
- Bathurst, April 19, 1 p.m.-3 p.m., Collège communautaire du Nouveau-Brunswick amphitheatre, Room 286C, 75 Youghall Dr.
- Campbellton, April 19, 6 p.m.-8 p.m.: Collège communautaire du Nouveau-Brunswick gymnasium, 47 du Village Ave.
- Edmundston, April 20, 1 p.m.-3 p.m.: Clarion Hotel, Banquet Room, 100 Rice St.
Blaine Higgs faces pension reform backlash in Fredericton
Retired teacher tells finance minister she has 'no faith in you, no trust in you'
The backlash against the Alward government’s proposed changes to the civil service pension program continued on Wednesday during a public meeting in Fredericton.
Finance Minister Blaine Higgs faced a crowd of more than 1,000 frustrated civil service pensioners, who demanded the proposed changes be halted, in Fredericton.
In front of the packed conference room, Susan Merrill, a retired school teacher, made an impassioned plea for Higgs to reconsider the proposed changes.
"I have no faith in you, no trust in you. I thought this contract that I’ve had for 37 years was good for my lifetime. And it isn't obviously," she told the finance minister.
She punctuated her exchange with Higgs with a very direct statement.
"I'm not sleeping well and I hope you don't sleep well either," she said.
More than 1,000 retired civil servants showed up to a public meeting in Fredericton on Wednesday to discuss proposed pension changes. (CBC)
The finance minister tried to assure Merrill and other speakers the provincial government wanted to hear their concerns. He also pointed to the financial pressures being faced by the provincial government.
Premier David Alward unveiled the proposed pension system last May and immediately had a group of unions sign onto the so-called shared-risk pension plan. Saint John also moved its troubled city pension plan over to a shared-risk model and Fredericton is following along as well.
Under the provincial government’s reforms, the future pension risk would be shared by both sides.
The proposed model also includes increased contribution levels and higher age of retirement phased in slowly over a period of time.
Government officials have previously said the pension changes would not cut the benefits in place for retirees.
But a government actuary at a Saint John meeting on Wednesday afternoon said cost-of-living increases will be eliminated for pensioners and instead be dependent upon market performance.
The Public Service Superannuation Act (PSSA) currently has a $1-billion shortfall, which is expected to get worse with people living longer and interest rates at historically low levels.
The PSSA plan covers employees who work directly for government departments and NB Power and included 13,441 pensioners as of March 31, 2012. Their average annual pension was $20,603.
In addition the PSSA has 19,611 active contributors.
The provincial government wants to move the $4-billion PSSA plan to the shared-risk model first, followed by the teachers' $4.2-billion plan.
The finance minister also faced a verbally hostile crowd of about 400 people in Saint John on Wednesday afternoon.
Higgs is planning several more meetings to discussion the proposed pension changes.
He told the crowds in Fredericton and Saint John that the provincial government has not effectively communicated the changes to retirees.
"This is a long overdue communication session and I want to apologize for that on behalf of all of us," he said.
'There will be war' over pension changes, retirees warn
Angry civil service pensioners in Moncton tell finance minister reforms are 'illegal'
Opposition to proposed pension reforms continued to gather strength on Thursday afternoon as Finance Minister Blaine Higgs met with hundreds of angry retired civil servants in Moncton.
About 600 people attended the public information session about switching to the shared-risk model, including Betty Smith, a retired teacher and member of the Pension Coalition of New Brunswick.
"What they are doing is unacceptable, we will not accept it," said Smith. "There will be war in the province before this is over."
Under the provincial government’s reforms, the future pension risk would be shared by both sides.
Guaranteed cost-of-living increases will also be eliminated for pensioners and instead be dependent upon market performance.
Smith, who spent 12 years teaching and 33 years in the classroom, said she worked too hard to see her pension plan change.
"What they are doing is illegal, very illegal," she said.
"All we want is what we paid for — nothing more, nothing less. Shared-risk is great on a go-forward basis, not the way it's going now."
"We paid dearly for what we have today, and the money has been squandered by the governments. And they want to get more of our money. And we're not going to put up with it," Smith said.
Higgs 'embarrassed' about lack of consultations
The finance minister was also peppered with questions about a lack of communication and consultation on the changes.
Higgs, who is touring the province, visiting seven cities in four days, acknowledged their concerns and apologized to the crowd several times.
"I have not been involved in the process to this level til this point," he said. "I am embarrassed to be in this position at this time, where discussions were not held to the degree where they should have been."
Higgs was defensive, however, when it came to threats that his government will suffer consequences at the polls over the unpopular pension changes.
That type of threat has scared previous governments and put the province deeper and deeper into debt, he said.
"For me and for my colleagues, we didn't join this to just have this province to continue to spiral down this hole. We joined it to say can we start to recover."
Under the current plan, the risk of any market downturns is borne by the provincial government alone. Under the reforms, the risk would be shared by both sides.
The proposed model, unveiled last May by Premier David Award, also includes increased contribution levels and higher age of retirement phased in slowly over a period of time.
Government officials have previously said the pension changes would not cut the benefits in place for retirees.
But a government actuary at the Saint John meeting acknowledged cost-of-living increases will be eliminated for pensioners and instead be dependent upon market performance.
The Public Service Superannuation Act (PSSA), which covers employees who work directly for government departments and NB Power, currently has a $1 billion shortfall.
It included 13,441 pensioners as of March 31, 2012. Their average annual pension was $20,603.
A meeting was also held in Miramichi on Thursday night.
Meetings are also scheduled for:
- Bathurst, April 19, 1 p.m.-3 p.m., Collège communautaire du Nouveau-Brunswick amphitheatre, Room 286C, 75 Youghall Dr.
- Campbellton, April 19, 6 p.m.-8 p.m.: Collège communautaire du Nouveau-Brunswick gymnasium, 47 du Village Ave.
- Edmundston, April 20, 1 p.m.-3 p.m.: Clarion Hotel, Banquet Room, 100 Rice St.
Higgs tries to defuse furor over pension reforms
Finance minister says province 'not going to war'
Finance Minister Blaine Higgs is trying to defuse the growing controversy of the provincial government’s proposed changes to the pension system for the civil service.
The finance minister has held a series of meetings around the province in recent days that have been attended by more than thousand angry retired civil servants.
He has been forced to apologize to the crowds for the provincial government’s handling of the pension reforms, even though he admits he had not been involved in the process until recently.
Finance Minister Blaine Higgs said he was not heavily involved in the pension reforms until recently. (CBC)
"I am embarrassed ... This program, this pension plan, I haven’t been involved with closely until this point in time. But I will be involved with it directly," Higgs said in an interview on Friday.
The controversy surrounds the proposed pension reforms.
Retired civil servants, under the current plan, are sheltered from any risk of market downturns by the provincial government.
Under the reforms, the risk would be shared by both sides.
Premier David Alward unveiled the proposed model last May, which included increased contribution levels and a higher age of retirement phased in over a period of time.
The retirement age will be increased to 65 from 60 over a 40-year period under the proposed model. Higgs said he’s dealing with a situation where some people may now be retired longer than they actually worked for the provincial government.
The finance minister said in the last budget he had to book $53 million in additional liabilities because of new mortality levels in the pension program.
The Public Service Superannuation Act (PSSA), which covers employees who work directly for government departments and NB Power, currently has a $1 billion shortfall.
It included 13,441 pensioners as of March 31, 2012. Their average annual pension was $20,603.
Province ‘not going to war’ on pensions
The finance minister has been confronted at these public meetings by many pensioners, who have relayed their deep frustration with the provincial government’s changes.
In Fredericton, Susan Merrill, a retired school teacher, passionately told Higgs how she had lost faith and trust in him and concluded, "I hope you don’t sleep well either."
Higgs said he’s trying to explain the provincial government’s position and reduce the anger about the reforms.
"I’m doing my part to minimize the hype and get the facts out there. I was not feeling very good about the meetings because things were said to me personally that I take very dearly," he said.
He said much of the controversy has been generated because of a lack of "good, clear information."
But many people at the public meetings have warned Higgs they will punish the Alward government at the polls in next year’s election if the changes go forward.
Betty Smith, a retired teacher, said on Thursday, "there will be war in the province before this is over."
The finance minister did his best to downplay such rhetoric.
"We are not going to war on any issues," Higgs said.
"What we are prepared to is to continue to explain to individuals and we are asking for their help to be part of the solution to a greater problem in this province."
There will be more pension reform meetings on Friday in Bathurst and Campbellton and in Edmundston on Saturday.
Retirees steadfast against pension changes, coalition says
Finance minister's meetings to try to sell reforms 'waste of time'
A whirlwind province-wide tour by the Finance minister to try to sell changes to the pension plan for retired civil servants was a waste of time, says a spokesman for Pension Coalition NB.
Retirees maintain it's not fair to change their benefits retroactively and will take the government to court if they have to, said Clifford Kennedy.
"Without a doubt in every single meeting people indicated … 'Leave our pensions alone. We signed a contract, we fulfilled our obligations and what you're doing is unethical and immoral," he said.
Four members of the Coalition delivered the same message during a meeting with Premier David Alward earlier this month, but to no avail, said Kennedy.
Retired civil servants are currently sheltered from any risk of market downturns by the provincial government. Under the reforms, however, the risk would be shared by both sides.
Guaranteed cost-of-living increases will also be eliminated for pensioners and instead be dependent upon market performance.
Kennedy contends when the premier announced the pension reforms in May, he said they would be applied on a go-forward basis only.
Then, in December, the government amended the Pension Benefits Act and "basically protected themselves from being sued," he said.
"We know clearly that our only option is to go to court if we don’t come to an understanding."
Finance Minister Blaine Higgs, who held information sessions in seven cities over four days last week, has said the current plan is not sustainable.
"We're not ignorant in regards to the fact that changes do need to be made," said Kennedy.
But it should not be on the backs of retirees, he said.
"Never did they ever think there could be a potential cut in the indexation — and even a potential reduction in their base benefit," Kennedy said, referring to the experience in the Netherlands, which is the model the New Brunswick reforms are based upon.
Although several of the Dutch plans have performed extremely well, with returns of up to 13.7 per cent, indexing has been eliminated this year and base benefits have been cut by 0.5 per cent, with another 1.6 per cent cut projected for next year, he said.
"That is 6.2 per cent reduction in two years on a plan that’s performed extremely well," said Kennedy. "That is scary."
https://www.cbc.ca/news/canada/new-brunswick/retirees-hire-lawyer-to-fight-pension-reforms-1.1411964
Retirees hire lawyer to fight pension reforms
Pension Coalition says switching civil service plan to shared-risk model is unfair
A group of retired New Brunswick public servants has hired a Toronto lawyer to help fight changes to the civil service pension program.
Pension Coalition NB, which is made up of hundreds of retired provincial government workers, has brought in pension rights lawyer Ari Kaplan.
Kaplan, who has had success fighting pension changes in New Brunswick before, says the government's latest proposal of a shared-risk model is unfair.
"The issue is how to fairly distribute the risk among all people that would be contributing. And most of that risk has already been borne by the pensioners, given that they've worked their lives — 30, 40 years — to earn these benefits," he said.
Clifford Kennedy says a coalition of retired civil servants is not ruling out legal intervention against the provincial government's pension reforms. (CBC)
Under the current plan, retired civil servants are sheltered from any risk of market downturns by the provincial government with guaranteed cost-of-living increases.
Under the reforms, announced by Premier David Alward in May 2012, the risk would be shared by both sides.
The proposed model also includes increased contribution levels and higher age of retirement phased in slowly.
Retirees maintain it's not fair to change their benefits retroactively.
Clifford Kennedy, a coalition member, says that while relations with the government have improved, the group is not ruling out legal intervention.
And that's something the provincial government would no doubt like to avoid coming into an election year.
"Our members are expecting that those rights will be respected," said Kennedy, 62.
"This individual [Kaplan] is the one that pleaded the case, Quinn vs. NB and won," he said.
Finance Minister Blaine Higgs faced hundreds of angry civil servants during a series of town hall meetings organized to discuss the proposed pension reforms. (CBC)
"[Court of Queen's Bench Justice William] Grant came out and said that it is illegal for government to go out against retirees and take away their benefits."
Grant had said the primary purpose of cost-of-living adjustments "is to protect retirees from inflation because of their vulnerable circumstances arising from the fact that upon retirement their income is otherwise fixed and they are no longer able to bargain better remuneration to counteract inflation."
Grant directed the committee that oversees the pension plan for the New Brunswick Nurses Union and the New Brunswick Union of Public and Private Employees to refrain from making adjustments to cost-of-living adjustments for retirees.
The Pension Coalition has been vocal in its opposition to the proposed shared-risk model. Hundreds of members attended a series of heated public meetings about the reforms last spring.
Many people at the meetings warned Finance Minister Blaine Higgs they will punish the Alward government at the polls in next year’s election if the changes go forward.
The finance minister, who held information sessions in seven cities over four days in April, has acknowledged pensioners' concerns and apologized that the government did not effectively communicate the changes to retirees.
However, Higgs has also said the current plan is not sustainable. He’s dealing with a situation where some people may now be retired longer than they actually worked for the provincial government, he has said.
Retired civil servants mull pension-reform lawsuit
Pension Coalition is asking members whether it should sue over shared-risk pension plan
A coalition of retired provincial civil servants is surveying its members on whether to sue the New Brunswick government over proposed changes to their pension plan.
Pension Coalition NB, which is made up of hundreds of retired provincial government workers, is touring the province and raising concerns about the financial implications of the province's plan to convert civil service pensions to the shared-risk model.
Clifford Kennedy, a member of the coalition, said the group is presenting two options to its members at their meetings.
One option is to wait until the changes are put into effect and the other is to challenge the reforms in court.
The legal route, Clifford said, would be costly.
Robert Blais said he's been given complete access to the provincial government’s pension numbers and accepts the government's claim there is just a 2.5-per-cent chance pensions will be ever have to be reduced. (CBC)
"It's a very, very expensive option and we've indicated so to the members of the coalition who attended [Tuesday’s meetings],” he said.
“The base minimum is at least $100,000 and could be over $200,000. If they tell us to go forward, there will be a fundraising campaign as a legal fund.
Under the shared-risk model, any future risk would be split between employees and the provincial government.
The proposed model, announced last May, included increased contribution levels and a higher age of retirement, phased in over 40 years.
Finance Minister Blaine Higgs held his own public meetings in April to discuss the pension reforms.
At those meetings, he told retired public servants that he was “embarrassed” about how the pension reforms had been handled.
Actuary given access to pension numbers
The pension coalition invited its actuary to talk to members about the impact of the proposed changes.
Robert Blais said he's been given complete access to the provincial government’s pension numbers and accepts the government's claim that there is just a 2.5 per cent chance pensions will be ever have to be reduced.
The real danger is the scenario where cost-of-living increases are withheld in future, according to the actuary.
Liberal Leader Brian Gallant says his party would like a judicial review of the proposed pension changes for retired civil servants. (CBC)
Under shared-risk models that can happen if investment markets fall and the plan doesn't perform as well as expected.
The pension coalition is also planning to continue its fight against the proposed changes. A collection was taken to build a war-chest for pension reform-related activities that Kennedy said will last until the next fall’s provincial election.
"I'm going to advocate and continue to advocate,” he said.
Liberal Leader Brian Gallant attended the coalition’s pension meetings on Tuesday. He said Liberal members will be at the coalition’s nine remaining meetings.
Gallant said the Liberals would like to see further study of the proposed changes.
"We think there should be a judicial review. We think that it's incredibly important that there be consultation and we think that it's important that the numbers be run by the auditor general,” he said.
The finance minister said in the last budget he had to book $53 million in additional liabilities because of new mortality levels in the pension program.
The Public Service Superannuation Act (PSSA), which covers employees who work directly for government departments and NB Power, currently has a $1 billion shortfall.
It included 13,441 pensioners as of March 31, 2012. Their average annual pension was $20,603.
https://www.cbc.ca/news/canada/new-brunswick/civil-servants-retirees-pack-pension-meeting-1.1868919
Civil servants, retirees pack pension meeting
About 1,000 people turn out in Fredericton for public meeting by Pension Coalition NB
The final public meeting on proposed changes to the provincial government's pension plan drew more than 1,000 people in Fredericton on Wednesday night.
Pension Coalition NB has been holding meetings around the province in reaction to the Alward government's announced plans to convert the pension plans for provincial civil servants to a shared-risk model.
That change would transfer some of the investment risk to pensioners and could mean the cost-of-living increase for retirees would change, removing the guarantee of such increases.
The prospect of that worries retirees such as Phyllis Prendergast, who retired nine years ago.
"All though my working life, part of our employment agreement was you pay into the pension plan and this is what you get," said Prendergast. "That was a guarantee and now that's gone, or it could be gone."
The government has yet to introduce legislation to change the pension act.
Clifford Kennedy is with the pension coalition and indicated the retirees are ready to take on the government over any changes they don't like.
"People were voicing their opinions verbally and they were raising their hands in regards to wanting for us to fight the fight from a political perspective, a media perspective and a legal perspective," said Kennedy.
The coalition is raising money for a legal challenge and has hired pension rights lawyer Ari Kaplan of Toronto.
Finance Minister Blaine Higgs has told the coalition he is prepared to meet with them in October.
https://www.cbc.ca/news/canada/new-brunswick/pension-manager-avoids-reform-debate-1.1912441
Pension manager avoids reform debate
John Sinclair appeared before an MLA committee to report on the last 2 years
New Brunswick Investment Management Corporation CEO John Sinclair appeared before the standing committee on Crown corporations on Thursday, but he avoided the pension controversy.
“NBIMC continues to exceed the investment requirements for the pension funds under our management,” he told the committee of MLAs.
Sinclair said despite the 2008 market crash his team averaged a 4.75 annual return investing public-sector pension funds.
Liberal MLA Roger Melanson praised the success, and tried to pin down Sinclair on the Progressive Conservative government's proposed reforms.
“Have you been asked in regard to this discussion of potentially going to a shared-risk model in New Brunswick?” asked the Dieppe Centre-Lewisville representative..
The reform would see retirees lose cost-of-living increases in years the market performs badly.
But Sinclair explained his role is not to pay out benefits but to play the market, which wouldn't change under the reform.
"We feel comfortable that we can provide investment management services for various objectives,” he said.
No questions from Tories
Sinclair did say longer life spans would strain pension funds.
“You know, that's something that is recognized industry-wide. In terms of specific details with respect to the reform discussions going on here, whether it's with the task force or the coalition, we haven't been party to those details.”
Despite the controversy over pension reform, none of the Progressive Conservative MLAs spoke up when committee chair Ross Wetmore called on them.
Melanson said he was surprised the Tories were not curious about a pension system that's been causing their party so much political grief.
A coalition of retired civil servants has threatened a lawsuit to block the reform.
Blaine Higgs softens stance on pension changes
Finance Minister guarantees pension cheques won't be lower than they are today
A letter being sent to retirees today promises cost of living increases will continue and benefits will never be lower than they are today.
Higgs couldn't previously give that assurance, and retirees objected to the possibility of their pension benefits possibly changed as a result of the provincial government's move to a shared-risk pension plan.
Higgs is hoping to ease those concerns.
"Even though the possibility of reduced benefits was extremely low, we decided to take it off the table altogether, said Higgs. "A lot of misinformation has been circulated.
"Well, now I can say that your cheque that you receive today will not reduce."
But the chair of the New Brunswick Pension Coalition says nothing really has changed.
"It's really smoke and mirrors because if you look at the shared-risk plan, the power's given to the administrator of the plan," said Bonnie Hoyt-Hallet.
"In shared-risk that transfers from government because they are no longer guarantors. And that plan administrator can increase, decrease, or suspend the contribution to the plan, increase or reduce base benefits, and increase or reduce the ancillary benefits."
Hoyt-Hallett said the coalition supports pension changes, but it wants to start the process all over again and look at both the public and private sector in a transparent way.
The pension coalition formed in reaction to the province's proposed changes. The group hired a lawyer from Toronto and said it's prepared to take on the government in court to protect their pensions, if necessary.
Higgs said it would be "immoral" for the provincial government not to address a pension plan that is unsustainable if left unchanged.
"We feel it's the right thing to do," said Higgs. "If that costs the [2014] election, I'll hold my head high.
"There's a small, vocal group in the coalition who feel they're hard done by."
Hoyt-Hallett challenges that assertion.
"We're not radicals," she said. "This is very strange for us.
"We were dedicated public servants, but it's important for us to do this, to make sure it's fair."
Alward pushes ahead with shale gas, pension reform
Throne speech points to economy as government's top priority with 11 months to go before election
In its final throne speech before a provincial election that is set for Sept. 22, 2014, the Alward government pointed to improving the province's economy as the lead item on its agenda.
"There is no hiding it — these are still challenging economic times," said Lt.-Gov. Graydon Nicholas in delivering the Alward government's fourth throne speech since it was first elected in 2010.
The government incurred a $508 million deficit for the last fiscal year, about $97 million higher than it projected, and the net debt currently stands at more than $10 billion.
"New Brunswick is at a crossroads," Nicholas said.
The government lauded the proposed TransCanada pipeline from Alberta to Saint John's Irving Oil refinery as a "once-in-a-generation opportunity that will help retain and return our workers at home."
'Economic benefits that could be derived from our natural resources are what will allow government to help fund and improve education, health care and many other services in the years ahead.- Lt.-Gov. Graydon Nicholas in Speech from the Throne'
And it pointed to natural resources ranging from shale gas, to lumber, and seafood as the key to economic improvement in a province with stubbornly high unemployment that persists above the 10 per cent level.
"Economic benefits that could be derived from our natural resources are what will allow government to help fund and improve education, health care and many other services in the years ahead," said Nicholas.
"The true problem is the question of revenue," Premier David Alward told reporters.
In addition to committing to continue with the responsible exploration and development of shale gas, the government announced it will launch an expression of interest for potash to promote other potential sites for exploration and mining of the resource elsewhere in the province.
Atlantic Potash Corp. signed a two-year agreement with the Department of Natural Resources in December 2011 to explore the Millstream potash deposit and other development opportunities in New Brunswick.
The company has said a mine could create 16,700 direct and indirect jobs during construction and 900 direct and indirect jobs once the mine is operating.
Meanwhile, PotashCorp New Brunswick has a new $1.67-billion mine near Sussex, which will more than double production from the existing mine once it is fully operational by 2015.
Potash is a key ingredient in fertilizer.
Status quo pension 'not an option'
Another contentious issue for the Alward government has been reforming the pension plan for the public service by moving to a shared-risk model.
Civil servants who have already retired have been particularly upset and said they would fight any change in benefits in court.
Earlier this week, Finance Minister Blaine Higgs said the government is softening its stance on pension reforms for retirees. He said a letter being sent to retirees on Monday promises cost of living increases will continue and benefits will never be lower than they currently are.
However, Alward's government signalled that it will press ahead with pension changes for other civil servants, introducing legislation to change the pension system in the coming session.
The pension plan is currently facing a $1-billion deficit, which is expected to grow, the speech states. "The status quo is not an option."
"The legislation will make public service pensions more affordable, fair, sustainable and secure for all public service retirees going forward."
Prescription drug plan next year
By next summer, the government also plans to move forward with a new prescription drug plan to help New Brunswickers afford the drugs they need and prevent people from experiencing financial hardship because of prescription drug costs.
An estimated 200,000 people in the province do not have drug insurance.
"This new plan will contribute to the sustainability of New Brunswick’s health care system by providing access to the drugs New Brunswickers need to manage their health," the speech states.
"Individuals who can effectively manage their chronic diseases through affordable prescription drug coverage require fewer hospitalizations and experience better quality of life."
Some business owners have already expressed concerns about the plan, which would see premiums split three ways — between the provincial government, employees and employers.
The Canadian Federation of Independent Business has said many small business owners are against a mandatory drug plan because payroll taxes impede business growth.
Medicare billings to be made public
One new initiative stands to put the government at odds with the New Brunswick Medical Society, as the government intends to publicly report on remuneration paid to all medical practitioners, including fee-for-service payments to physicians through medicare.
The throne speech says that's in response to the auditor general's recommendations and to "demonstrate proper accountability for more than $500-million in annual health care spending."
In December 2012, Auditor General Kim MacPherson found some New Brunswick doctors are overbilling medicare and not facing any penalties. In some cases, doctors double billed, charging both medicare and the province's WorkSafeNB for the same service, the province's chief financial watchdog found.
This was the Alward government's final throne speech before the fixed provincial election date of Sept. 22, 2014.
"We are continuing the course that we've begun" from a fiscal standpoint, said Alward.
With that election looming, the Conservatives will now require the auditor general to begin reporting on the province's financial status 60 days in advance of each fixed election date.
The government says it will also take measures to ensure the costs of election promises are more clear to New Brunswickers.
"This includes providing tools to voters to enable them to better understand the economic and fiscal outlook for the province leading up to an election," said Nicholas.
NDP urges Liberals to slow down Alward's pension reforms
Dominic Cardy says dragging out debate could allow time for opposition to bill grow
NDP leader Dominic Cardy says the Liberals should use parliamentary procedure to bog down debate on the move to a shared-risk plan.
The NDP has no seats in the legislature, so it's powerless to challenge the pension reform legislation that's expected in the upcoming session. But with 13 MLAs, the Liberals do have the means to slow it down, said Cardy.
"That can give more time for Conservatives who might be having second thoughts to come on board, and perhaps we can get some of these changes made that need to happen to make sure that our pensions are properly protected," he said.
Liberal Leader Brian Gallant would not commit to bogging down the pension reforms by using parliamentary manoeuvres.
"We're going to be voting against the reforms. That's one of the ways we have to express our discontent with the changes," Gallant said.
Still, with an overwhelming Progressive Conservative majority in the legislature with 41 seats, a Liberal vote against the bill won't be enough to stop the changes.
Softened stance for retirees
Earlier this week, Finance Minister Blaine Higgs said his government is softening its stance on pension reforms for retired civil servants.
A letter was to be sent to retirees on Monday, promising cost of living increases will continue and benefits will never be lower than current amounts.
Under the current plan, retired civil servants are sheltered from any risk of market downturns by the provincial government with guaranteed cost-of-living increases.
Under the reforms, announced by Premier David Alward in May 2012, the risk would be shared by both sides.
The proposed model also includes increased contribution levels and higher age of retirement phased in slowly.
Retirees had argued it was not fair to change their benefits retroactively.
A pension coalition had formed to oppose the proposed changes. The group also hired a lawyer from Toronto to take the government to court, if necessary.
Higgs had previously said it would be "immoral" for the provincial government not to address a pension plan that is unsustainable if left unchanged.
https://www.cbc.ca/news/canada/new-brunswick/thousands-protest-pension-reforms-1.2416734
Thousands protest pension reforms
Angry crowd of retired public servants and supporters gathered outside legislature on Wednesday
But the premier's office disputes that figure, which the police officers, who were providing crowd and traffic control, described as being a "conservative estimate."
Spokesperson Jesse Robichaud contends it was closer to 700, based on photos and estimates by the RCMP, who provide security to the premier.
The protesters, who came from across New Brunswick, were carrying signs with slogans, such as "Broken contract equals broken trust," and "Ditch the dictators."
Some of the pension reform protesters had heated words for former finance minister Blaine Higgs who pushed the changes. (Jacques Poitras/CBC)
The retired public servants say they will not agree to the proposed reforms, which are tied to the government's plan to move to a shared-risk model for the public service.
Finance Minister Blaine Higgs met with some of the angry protesters and told them the existing plan has to change.
"What we have — if you wanna listen for one second — what we have found here is a pension plan that this province cannot afford. It is not sustainable," Higgs said over shouting.
"We're going to lose it for you, for the current employees, and future employees. That's why we're doing it," he said.
Retired civil servants contend it's unfair for their benefits to be changed retroactively. (Jacques Poitras/CBC)
Higgs told reporters the protest will not prompt further concessions on the provincial government's pension plans.
"Absolutely not," he said.
The Alward government signalled during Tuesday's throne speech it plans to press ahead with pension changes and will introduce legislation this session.
"The status quo is not an option," the speech stated.
The pension plan is currently facing a $1-billion deficit, which is expected to grow. The government wants to move to a shared-risk model so taxpayers don't have to top up the fund in years when it loses money.
Higgs did say earlier this week, however, that the government was softening its stance on pension reforms for retirees.
He said a letter was being sent to retirees, promising that their base benefits will never be lower than they currently are.
But the retirees say they do not trust the government.
They are also upset about the lack of an absolute guarantee of annual cost of living increases.
If the markets perform poorly in a given year, there may be no cost of living increase. But the government says it will be made up in years when the markets perform well.
Over a 20-year period, the government says the average cost of living increase will be at least 75 per cent of the rate of inflation, but says it has run the economic statistics from the past 20 years through the reformed model and there would have been a full cost of living increase in every one of those years, even during the 2008 market crash.
A long line of protesters had already gathered at the legislature by about 9:30 a.m. on Wednesday. (Jacques Poitras/CBC)
Still, civil servants who have already retired have said they would fight any change in benefits in court, arguing it's not fair to change their benefits retroactively.
Under the current plan, retired civil servants are sheltered from any risk of market downturns by the provincial government with guaranteed cost-of-living increases.
Under the reforms, announced by Premier David Alward in May 2012, the risk would be shared by both sides.
The proposed model also includes increased contribution levels and higher age of retirement phased in slowly.
The size of the anti-pension reforms protest exceeded Tuesday's anti-shale gas demonstration.
https://www.cbc.ca/news/canada/new-brunswick/pension-reforms-have-union-support-higgs-says-1.2431996
Pension reforms have union support, Higgs says
Unions representing about 7,000 members signed memorandum of understanding for shared-risk model
The Alward government says it has "substantial union support" for public sector pension changes it introduced in the legislature Tuesday, even as a group of retirees continue to battle against the reforms.
The changes call for big hikes to how much employees will now have to contribute and how long it will take to qualify.
Even so, Finance Minister Blaine Higgs said he has garnered the support of unions representing two-thirds of the bargaining positions in the Public Service Superannuation Act (PSSA).
The pension plan is currently facing a $1-billion deficit, which is expected to grow. The government wants to move to a shared-risk model so taxpayers don't have to top up the fund in years when it loses money.
The province says a shared-risk model will make sure current employees have a secure pension when they retire, and that retirees will see their pensions grow with cost of living.
"We are a province that can no longer afford to do nothing," Higgs said. "We just can’t hit the pause button, we can’t just sit idle and watch our province go further and further in debt."
The average public service salary is $62,000 and the average pension is $21,400.
The changes are set to come into force on Jan. 1. It will mean a significant hike in what public workers contribute — $1,200 a year on average.
The legislation won't get support from Liberal Leader Brian Gallant.
"It’s quite clear to us," he said. "It’s quite clear to the pensioners and retirees and many retired New Brunswickers that there are many uncertainties with what they are proposing. They still didn’t accept our call for more information to be made public.”
'Smoke and Mirrors'
Earlier this month more than 1,500 angry retired public servants and their supporters gathered outside the legislature to protest pension reforms.
They contend it's not fair to change their benefits retroactively. And the concerns remain.
Pension Coalition NB chair Bonnie Hoyt-Hallett says eliminating cost-of-living increases will hurt the retirees, despite the minister's assurance that there will be no reduction in pension benefits.
She called the pension proposal “smoke and mirrors.”
"This isn’t a very good day for anybody that’s in the civil service," she said. "It’s not a good day for the future of the civil service because it’s going to be extremely hard to attract high, well-calibered talent into this province and to keep them here."
Some unions, however, have taken a different view.
"We recognize that the province is in a difficult fiscal situation," Suzie Proulx-Daigle, president of the New Brunswick Union, said in a statement.
"We could have refused to co-operate with government and kick the can down the road for the next generation to solve. Instead we decided to work in a collaborative way with government to find a solution. That solution is the shared-risk plan."
The New Brunswick Union represents about 4,200 members.
The other unions that have signed the agreement include: the International Brotherhood of Electrical Workers (2,200 members), the New Brunswick Nurses Union (200 members), CUPE 1252 Hospital workers (225 members), CUPE 1840 Court Stenographers (72 members) and CUPE 5017 Community College Operational Services (100 members).
The government is also turning its sights on teachers' pensions next, hoping to convert it to a shared risk as well. That plan has 18,500 members, including 9,900 current teachers and 8,600 retirees. The average salary is $73,000 and average pension is $31,000.
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One nice lady talked to me form this office for quite some time before we were cut off
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