Carleton University is hopeful that talks with CUPE Local 2424 will resume soon. The university’s desire is to reach a negotiated settlement.
We are aware of the stresses that the strike is causing for CUPE Local 2424 members on the picket lines, and of the impact on students, faculty, staff and visitors to campus.
This strike has focussed on the pension plan and pension security for members of CUPE Local 2424 and, by extension, all members of the pension plan. These are important issues. The following questions and answers are intended to provide more background regarding the pension plan, as well as provide more information and clarity regarding the university’s position on these matters.
Q: Is the university seeking at the bargaining table to reduce or eliminate the pension benefits of CUPE Local 2424 members?
No. The University has not proposed the elimination or reduction of CUPE Local 2424 members’ pension benefits. This is not something the university is even considering.
Q: Has the university tabled language to assure CUPE it is not seeking to reduce or eliminate the pension benefits of CUPE Local 2424 members?
Yes. In fact, during collective bargaining, and to avoid this strike, the university proposed language for the collective agreement that we believed demonstrates our commitment to the pension plan. The university’s offer proposes that the collective agreement be amended to expressly state:
“The employer agrees to maintain the Retirement Plan which is a Money Purchase Plan with a Defined Benefit Minimum Guarantee.”
We believe that this language protects the pension plan because, if this language is added to the collective agreement, the pension plan could not be eliminated or substantially changed without future negotiations with CUPE Local 2424. Any future changes to the pension plan would be subject to the recommendation of the Pension Committee, which has always been the case at the university for more than 50 years.
Q: What comfort do employees have that the defined benefit component will not be adversely affected without employee and union input?
In addition to the language above, the university has agreed to protections relating to the composition of the Pension Committee. The university proposed that the composition of the Pension Committee could only be changed in the future by the Pension Committee itself. The university agreed to the union’s proposal that there could never be more non-union representatives on the committee than union representatives, and CUPE Local 2424 would always have a representative on the Pension Committee:
“The Employer agrees that the composition of the Carleton University Pension Committee will not change, unless the Pension Committee recommends such change, but in no event shall the Pension Committee be comprised of more non-Union representatives than Union representatives, including 1 representative from local 2424.”
Q: Why does the university feel so strongly about protecting the governance of the Pension Committee?
Many decades ago, the Pension Committee was established to consider issues relating to the administration of the pension plan. The Pension Committee is authorized to consider potential changes to the pension plan and to make recommendations to the Board of Governors. Half of the representatives on the Pension Committee are representatives from the different unionizedemployee groups at Carleton. CUPE Local 2424 has long had a representative on the Pension Committee, who has participated in making decisions regarding recommended changes to the pension plan over the years.
We work hard to ensure that all representatives on the Pension Committee understand and are able to reach decisions with respect to the important issues under deliberation. For more than 30 years, no changes to the pension plan have been adopted by the university without a recommendation from the Pension Committee and all recommendations of the Pension Committee have been reached through consensus. In other words, a CUPE Local 2424 representative agreed to all of the prior recommendations at the Pension Committee that resulted in changes to the pension plan.
We strongly believe that our inclusive governance model is a significant reason why our pension plan remains financially sound and is fair for all members of the plan. We remain committed to our pension plan and the Pension Committee’s role. Our proposal is intended to provide comfort that our unionized groups will continue to make up at least 50 per cent of the Pension Committee.
Q: Is CUPE Local 2424 seeking to maintain language to protect the pension plan?
It is not correct to say that the language in the collective agreement protects members’ benefit security. The language that CUPE 2424 is seeking to maintain in the collective agreement, that the university has proposed be removed, addresses contributions to the pension plan.
Under the pension plan, all members are treated the same. This means that, regardless of what union or employee group you are a member of, you will contribute to the pension plan at the same rate, and earn a benefit that is based on the same formula, as other university employees. The university also contributes the same amount in respect of all members of the pension plan.
The language that CUPE Local 2424 seeks to maintain in the collective agreement could cause them to pay less contributions to the pension plan than other employee groups for the same benefits (including the defined benefit). Although CUPE Local 2424 has offered to agree to temporary contribution increases, the university views the contribution language as providing CUPE Local 2424 a veto over decisions of the Pension Committee. The university is seeking removal of this language to ensure that contribution rates for all members of the pension plan continue to be the same, based on the recommendation of the Pension Committee.
The university believes that the language the university has proposed promising to maintain the defined benefit component of the pension plan provides more benefit security for members of the pension plan.
Q: Is the university seeking at the bargaining table to impose pension language that is different than agreed to by the other bargaining units on campus?
No. CUPE Local 2424 members are being treated like every other employee group on campus that has pension language in the collective agreement. No other employee group has this 6% contribution language in their collective agreement.
The University believes that Carleton University employees are in a well-managed and financially sound plan. The University wants to ensure that what has worked so well in the past, continues to work well in the future. The Pension Committee represents all plan members and is therefore acting in the best interests of all members.
Carleton remains open and classes are continuing. The talent, skills and dedication of staff who are on strike are missed in the workplace. We hope a negotiated settlement will be reached soon and that staff are back at work doing what they do best – supporting Carleton’s mission to educate and graduate our students.
Rob Thomas
Assistant Vice-President (Human Resources)
Wednesday, March 21, 2018 in News Releases
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