NL

Unions, opposition question government on hiring outside help to do 'dirty work'

The Liberal government is defending its decision to hire an outside law firm to help with public service contract talks, but unions and the PC opposition say it flies in the face of budget cuts elsewhere.

Law firm already paid $14,000 in one month, according to government

Unions who have protested budget cuts say it's offensive to hire an expensive law firm when members are getting layoff notices. (Bruce Tilley/CBC)

The Canadian Union of Public Employees says government's decision to hire a St. John's law firm for contract talks with public sector unions flies in the face of other plans to cut costs, but government defended the hiring in the legislature Monday.

The law firm McInnes Cooper has been retained to advise the government during its negotiations with unions such as CUPE, NAPE, the Registered Nurses' Union and the Newfoundland and Labrador Teachers' Association.

Unions say it doesn't make sense to spend money on outside help at a time when other spending is being cut. (CBC)

The province will pay $350 an hour for collective bargaining support and $175 an hour for any additional services.

"The decision by Premier Ball to retain McInnes Cooper for legal and so-called crisis communications during this round of contract talks is yet more evidence that they have very little knowledge or respect for the negotiating process," said the president of CUPE Newfoundland and Labrador, Wayne Lucas in a press release Monday. 

"This also flies in the face of the government's attempts to reduce costs. Why on earth would they pay an outside firm $500 an hour, when they have qualified staff who can do this work?" said Lucas in the statement. 

"Not only is this insulting to their own staff, but we are left to conclude that this is being done so that someone else can do their dirty work for them." 

Lucas said CUPE "will not be bullied" by what he called "anti-union lawyers."

NAPE, nurses also upset

Other unions have also criticized the McInnes Cooper contract.

"I am truly shocked," said the president of the Newfoundland and Labrador Association of Public and Private Employees, Jerry Earle.

"What kind of message does that send to the people of the province, to public sector workers, to our union?" Earle asked in a news release a Sarturday.

"At a time when this government, this Premier, is telling the people of the province that they have no money for libraries, for Masonic Park, for over 650 jobs, for courts, offices, and so many other important services."

"Unbelievable," tweeted the president of the Registered Nurses Union Debbie Forward. "Money for lawyers, but no money for mental health services."

Already paid $14,000

In the House of Assembly on Monday,  Finance Minister Cathy Bennett said $14,000 has already been paid to McInnes Cooper since March 28.

Bennett was under fire from PC Leader Paul Davis who repeatedly asked how much it will cost, if there is a cap on spending for the firm and why was necessary to hire them .

"There's 90 or more lawyers in the department of justice, and [government] has decided to use that hard-earned money – levy money no doubt – earned by Newfoundlanders and Labradorians, to get outside help," he said. 

Opposition leader Paul Davis says the hiring of an outside legal firm sends a wrong message to public servants about their contract talks. (House of Assembly)

Bennett did not say whether there is a cap on spending, but insisted it would not be in the range of millions of dollars.

She was quick to point out that when Davis was premier, the government actually hired two law firms to help with public service negotiations over pensions reform, and that the unions also hired external legal help at that time.

She insisted that that extra help is needed more than ever because 2016 is a "peak" year for union negotiations, with 27 collective agreements expiring with NAPE, CUPE, nurses, health professionals and teachers. 

Questions about John Green

Davis also questioned if the appointment of John Green, former lawyer with McInnes Cooper, to Nalcor's board of directors had anything to do with the decision to hire McInnes Cooper as legal counsel.

"What process was used?" Davis said. "Was he part of any conversations about hiring McInnes Cooper?"

Premier Dwight Ball took the question, explaining there is "no connection between Green's appointment and the hiring of the St. John's law firm"

"As the former premier would know, Mr Green was appointed by his administration to one of the affiliated boards of Nalcor," he said. "He made himself available in this particular case while we wait for the independent appointments commission."