CCAC Pension Update - April 2007
ONA has court approval certifying its own class action CCAC pension suit that mirrors the one certified for the Ontario Public Service Employees Union (OPSEU).
Brief history of the pension issue since 1998
Prior to the OPSEU class action application, all of the health care unions discussed the possibility of legal action against the Ontario government over the fact that members who transferred to the Hospitals of Ontario Pension Plan (HOOPP) were not able to transfer their past service.
These members were disadvantaged by the fact that their pensions would be bifurcated (split), with the result that retirees would likely receive a lower overall amount than they would have received with a single amalgamated plan.
To make matters worse, the members did not get credit for their past contributory service for purposes of eligibility for the HOOPP transition benefit – where qualification for the full amount required 10 years of contributory service. The benefit was pro-rated for retirees with less than 10 years of contributory service.
In order to minimize some of the impact on CCAC members, an ONA HOOPP Board member raised the possibility of special eligibility rules for the CCAC members for the transition benefit. Unfortunately, HOOPP did not support the idea of singling out this group of employees.
It also happened at a time when the stock markets crashed in 2001 and 2002, making a better benefit for the entire group much more problematic.
Clearly, we are not new to the fight for pension justice for CCAC members. We have been working on this since 1998, and have been no less active than any of the other health care unions, including OPSEU, in bringing the concerns of CCAC members to the forefront.
ONA’s current pension activity
On February 13, 2006, ONA notified the government of our intention to file a class action on behalf of our members to make up for losses resulting from the government’s failure to make good on its pension promises pertaining to past service transfer. We filed our claim subsequently in that year.
We are pleased to report that the court approved certification of our action on March 23, 2007.
As many of you are aware, OPSEU filed a similar action earlier, and has already been certified by the courts. While certification is important, the real battle will be to actually win the case – and that should play out over the coming months, and likely into 2008.
ONA members want to know if we plan to continue the claim on behalf of former OPSEU members should we win bargaining rights for the new Bargaining Unit. Regardless of which union is successful, ONA will continue to fight for those members adversely impacted by the pension situation, as we expect OPSEU will do for its members. We have the same interests in a successful outcome, and want to see all CCAC employees benefit from this action.
We understand OPSEU has been critical of ONA for delaying the legal process. Nothing could be further from the truth. At most, this has added a couple of months to the start of the discovery process before Mr. Justice Cullity.
While the first days of the discovery will now be held in April, there are several more expected to be scheduled – likely until the end of the year, and possibly into 2008. These dates had already been anticipated, even prior to ONA becoming involved, and our participation has not delayed the completion of this stage of the process.
Considering the OPSEU claim was filed in 2002, we think that blaming ONA for the delay of their action is somewhat misplaced and overstated.
While we understand competition between unions, this is the type of issue on which unions should cooperate in the joint and common interest of all of their members. The health care unions cooperate on many levels, and this is yet another issue that would benefit from a joint effort.
Our researchers meet regularly to discuss Hospital Labour Dispute Arbitration Act (HLDAA) processes and we have a joint coalition on demutualization and human resources adjustment planning under the Public Sector Labour Relations Transition Act (PSLRTA).
In summary, ONA is not new to the fight, and in many ways we have led the fight.
Our participation in the class action can only enhance our chances of success, and that will be of benefit to both ONA and OPSEU members alike.
Is that not what trade unionism is supposed to be all about?
At least that’s what ONA thinks it is all about.
Next Steps Update
The final stage of the class action certification is to determine the manner in which details of the action will be relayed to those potentially affected by the outcome. ONA counsel is dealing with the judge on this matter. The law requires that the notices advise any member of her or his right to opt out of the action, which is not something that we would advise any member to pursue.
We are also legally obligated to request any documentation that members have that would be relevant to our claim to provide such information to our legal counsel. Letters will be going out shortly to advise members on the process to be followed for submission of such materials.