Liberal government moves to repeal PC legislation forcing unions into new pension plan
3 union groups challenged pension legislation in court last year, arguing it violated Charter rights
The New Brunswick government is ending a two-year fight with CUPE and repealing legislation that would have forced five unions into a shared-risk pension plan.
The Pension Plan Sustainability and Transfer Act was passed in late 2023, after Blaine Higgs, the Progressive Conservative premier, failed to get the unions to sign on to the shared-risk idea.
The new act established a process to transfer designated pension plans to shared-risk plans already registered under the provincial Pension Benefits Act.
It sparked debate and protests and led three unions to challenge the legislation in court, arguing it interfered with their right to free bargaining under the Charter of Rights and Freedoms.
Higgs touted the legislation as necessary to fix a $265-million shortfall in the pension fund.
René Legacy, who became finance minister after Susan Holt and the Liberals were elected last fall, says introduction of a bill Friday to repeal the shared-risk legislation is a campaign promise met.
"We want to bring back respect with our workers, with our government employees," Legacy told reporters at the legislature.
"We had a pretty healthy debate when this was brought in, and we've always said the place to negotiate is at the table, not in the legislature."
Legacy said the transition to transfer pensions hadn't started yet, so it's now a matter of going back to the negotiating table.
"To the best of my knowledge, I'm not in the depths of those Treasury actions, but I've been told that nothing has been moved over," he said. "It was still being litigated as far as I know."
Locals 2745 and 1253 of the Canadian Union of Public Employees and the New Brunswick Council of Nursing Home Unions filed a legal challenge to the Higgs legislation last February.
Legacy said even with the repeal, the government can't go back to the unions' earlier pension plans, which had problems. The goal is to find a plan that's sustainable for workers, government and taxpayers.
Union presidents present at the legislature Friday praised the decision to repeal the controversial act and said it was a sign the new government is willing to collaborate with its workers.
"This government is willing to work with labour and identify that (the Hilggs legislation) actually stripped and violated our rights as a union, and we're pleased to see this come forward today," said Sharon Teare, president of the New Brunswick Council of Nursing Home Unions.
Sandy Harding, CUPE's regional director for the Maritimes, said the repeal goes deeper than pensions for three union groups.
"This is a big day for us in this province and this is a big day across Canada that a government will respect the rights of free collective bargaining," she said.
Harding said legal action taken against the New Brunswick government will be withdrawn once the repeal process is complete.
Iris Lloyd, president of CUPE Local 1253 representing the New Brunswick Council of School District Unions, said she is ready to negotiate now that some trust in the provincial government has been restored.
"The three groups now feel very comfortable going back to the negotiating table."
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With files from Jacques Poitras