public safety workers

Unions Speak Out Against Quebec’s Bill 3, Plan Next Moves

Quebec’s controversial pension reform legislation, Bill 3, passed into law last week. The law divvies up responsibility for paying down governments $3.9 billion pension debt 50-50 between employers and employees. As a result, employees now shoulder more of the burden for paying down pension debt in the form of higher contributions.

Now, union leaders are speaking out against the law and planning their next moves. Union leaders say government officials have “started a fire”. From the Montreal Gazette:

“We’re more determined than ever,” Marc Ranger, spokesperson for the Coalition syndicale pour la libre négociation, told a press conference at the Crémazie Blvd. E. headquarters of the Quebec Federation of Labour.

“We will target municipal administrations, that’s for sure,” he said.

“Most of these mayors will not find this funny in the months to come.”

Ranger did not specify what the pressure tactics would be, but promised that after the Christmas break, municipal employees would take action that will make the public sit up and take notice.

However, he said the coalition, representing 65,000 firefighters, police officers, transport workers, blue-collar workers and white-collar employees, will steer clear of illegal actions like the Aug. 18 ransacking of city hall, which has resulted in criminal charges.

Bill 3, calling for negotiations with unions on underfunded pension plans and a 50-50 sharing of costs to refinance plans that are in the red, is the government’s response to a $3.9-billion pension shortfall.

[…]

He added that the union is prepared to take its legal challenge to the pension bill to the Supreme Court of Canada.

“They’ve started a fire. Now it’s up to them to put it out,” he said.

Chart: Retirement Benefits Are Most Important Job Feature For Majority of Public Sector Workers

Public sector workers were asked what characteristics or features of their jobs are most important to them. Job security, salary and health insurance were all extremely important; but for teachers and public safety workers, retirement benefits trumped everything.

Even among the public workforce at large, retirement benefits were rated as “extremely important” by over 60 percent of respondents.

Chart credit: 2014 Retirement Confidence Survey

State Law May Stand In Way of Phoenix Pension Cuts

A Phoenix ballot initiative – titled Proposition 487 – would block off the city’s traditional pension system from all new hires, and instead shift those employees into a new, 401(k)-style plan.

The measure, if passed, would not apply to the city’s police and firefighters. But opponents of the reform are now saying that a legal quirk could end up blocking benefits for all of the city’s 4,000 police officers and firefighters. Reported by the Arizona Republic:

The initiative targets the retirement plan for general city workers hired in the future. Although the measure’s preamble states it’s not intended to affect first responders, attorneys for Phoenix have said the actual language, specifically the amendment to the City Charter, is poorly written and could wind up blocking pension contributions for existing and future police and fire.

However, several areas of state law, including the Arizona Constitution and provisions creating the Public Safety Personnel Retirement System, could prohibit Phoenix from ever withdrawing from the plan or diminishing retirement benefits for existing employees, attorneys said.

[…]

[Attorney Robert] Klausner said the likely result is that the Public Safety Personnel Retirement System would have to sue Phoenix or stop crediting its police and firefighters for additional years of service. Ultimately, he said, the city is in an “impossible conundrum” that it would probably lose.

“No matter what you do, you’re violating the law and welcoming a lawsuit,” Klausner said. “All that does is make lawyers really happy.”

Proponents of the reform measure have accused opponents of “scare-mongering”. From the Arizona Republic:

Scot Mussi, chairman of the group, said it’s clear that the city could not legally stop its payments to the state pension system. He said “scare mongering” Phoenix officials have suggested it could apply to public-safety workers to trick voters.

“That’s just crazy,” Mussi said of the argument regarding police and firefighters. “It would be unconstitutional. It would violate state law, and it goes against what’s expressed in the initiative itself.”

The fight over the measure has been going on for several weeks now. Opponents had earlier claimed that the measure would also unintentionally cut benefits for disabled workers.