Prudence, Patience and Jobs

Recognizing the importance of this topic to them, the CLMPC met with and interviewed union elected officials, staff and trustees over the course of research. In addition, the CLMPC participated in several CLC- sponsored forums (e.g., the “Jobs Now!” conference of February 18-20, 1998 in Ottawa) and initiated a roundtable of senior union representatives (June 23, 1997, Ottawa) to discuss a wide range of Canadian pension investment issues, including labour’s role in determining outcomes of these. Later that year, the CLMPC agreed to work co- operatively with OPSEU to conduct a first-ever survey of Canadian labour trustees and representatives to advisory bodies associated with large private and public sector pension funds.

OPSEU survey research is a key initial step towards better comprehension of the needs and aspirations of Canadian labour trustees, advisors and their unions with respect to pension governance and investment decision- making. In particular, it yields new information about labour viewpoints on what constitutes effective and equitable joint trusteeship and other input bodies, the structural defects that may impede existing models and the resources required to facilitate enhanced labour participation in future.

Surveying Labour's Interest

OPSEU has for many years promoted the extension of worker participation in pension investment decisions that affect them, the economy and society. For this reason, the union collaborated with the CLMPC to produce the Survey of Union Pension Trustees to gain more understanding about the incidence of joint trusteeship and other conduits for labour input in pension governance. One of the first of its kind, this survey addressed questions to labour trustees and representatives of employees and plan members serving on advisory committees to twenty-three of Canada’s top funds. The following is a brief summary of key findings.

While labour input in Canadian pension investment decision-making is limited overall, it is more pervasive among the very largest public sector plans;
Eight structural variants of labour representation in pension governance were identified in the twenty- three funds, from fully joint trusteeship to representation in an advisory capacity to little or no formal involvement in decisions;
Full and official joint trusteeship (equal numbers of employee and employer appointees, sharing of top positions) is found to be best reflected in plans for the Alberta Public Service, the Colleges of Applied Arts and Technology, HOOPP and OPSEU Pension Trust;
Official joint trusteeship exists in five other large public sector pension plans, but models vary according to administrative details that shape labour participation;
Several public sector pension plans (e.g., in British Columbia) function with advisory committees with equal labour membership, but may be moving to joint trusteeship;
Most large private sector pension plans have little or no formal representation by labour at the level of boards of trustees;
Unions select labour trustees in five public sector pension plans or recommend nominees to the employer or government in others, while this practice varies in advisory structures;
Most models involving labour include the latter’s input in investment decisions, though a role in selecting and monitoring pension managers is more restricted;
There is increasing labour interest in advancing joint trusteeship and other forms of employee/plan member influence in Canadian pension governance (especially among public sector unions) as well as trustee education, more union networking and resources devoted to labour-related concerns, and asset-targeting strategies that promote jobs, local development and other economic and social priorities.

Source: Carmichael, Isla, Survey of Union Pension Trustees, OPSEU, July, 1998; OPSEU, The Power of the Purse and Policies on New Ways of Organizing, 1998