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The Top 24: Union Control

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Joint project of the Ontario Public Service Employees Union (OPSEU) and the ... Board monitors and staff selects - ALA and OMERS ... – PowerPoint PPT presentation

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Title: The Top 24: Union Control


1
The Top 24 Union Control?
  • UNION PENSION FUND TRUSTEES IN CANADA
  • AND
  • CONTROL OVER INVESTMENT

2
The Top 24 Pension Funds Social Investment?
Background to Study
  • Joint project of the Ontario Public Service
    Employees Union (OPSEU) and the Canadian Labour
    Market and Productivity Centre (CLMPC)
  • The first study of union activity in pension fund
    investment in Canada, covering the top 24 funds
  • Assesses the extent to which unions and their
    members are involved in pension fund investment
    in Canada
  • Provides a preliminary assessment of union
    involvement in social investment in Canada

3
Barriers to Union Involvement in Pension Fund
Investment
  • Employer-controlled pension funds
  • Fiduciary responsibility and the prudent man
    rule
  • Rejection of social value by the financial
    industry

4
WHAT IS SOCIAL INVESTMENT?
  • There are three types of social investment
  • Ethical investment, or screening
  • Shareholder activism, or corporate
    governance
  • Economically targeted investment

5
THE TOP 24 PENSION FUNDS SOCIAL
INVESTMENT?Findings
  • In two thirds of the funds, unions are seeking or
    have varying models of joint trusteeship.
  • One of the reasons is to have more control over
    investment.
  • Seven funds have little or no union involvement
    in fund investment. These are private sector
    unions.
  • Five funds have social investment policies on
    ethical investment.
  • Five funds have already blocked the financing of
    a private hospital and a highway.
  • One fund is hiring a fund manager with experience
    in working with unions.

6
THE TOP 24 PENSION FUNDS WHO CONTROLS
INVESTMENT?Further findings
  • Selection and monitoring of fund managers - OPT,
    CAAT, CBC
  • Board selects and staff monitors - HOOPP
  • Board monitors and staff selects - ALA and OMERS
  • Staff monitors and selects - APSPP and the four
    B.C. funds
  • Nova Scotia works with staff on selection and
    monitoring
  • The employer handles all selection and monitoring
    - Hydro Quebec and Ontario
  • The Caisse (bipartite) handles the investment
    process for remaining Quebec funds

7
THE TOP 24 UNION CONTROL?
  • Funds with no union or
  • employee representation
  • BCE Inc.
  • CN Rail
  • GM of Canada
  • Canadian Pacific
  • Air Canada
  • Diagram 8.9

Company Plan
Board of Directors/ Trustees
8
THE TOP 24 UNION CONTROL?
  • Funds with little or no
  • representation from the
  • in-house union
  • Ontario Hydro
  • Ontario Pension Board
  • Diagram 8.8

100 Employer representatives
Board of Trustees
9
THE TOP 24 UNION CONTROL?
50 employees 50 employers
  • Funds with no joint
  • trusteeship
  • 50 employee and
  • retiree representation
  • OMERS
  • Alberta Local Authorities
  • Diagram 8.7

Government Ministry
Legislated Plan
Board of Trustees
Elected Chair
10
THE TOP 24 UNION CONTROL?
Unions 50
Employers 50
  • Funds where Unions are
  • recognized but only in an
  • advisory capacity
  • B.C. Municipal
  • B.C. Public Service
  • B.C. Teachers
  • Nova Scotia Public
  • Service
  • Diagram 8.6

Advisory Committee
Legislated Plan
Government Trustee
11
THE TOP 24 UNION CONTROL?
  • Jointly trusteed funds
  • where Unions and the
  • employer are equally
  • represented except that
  • the employer retains the
  • chair
  • CBC
  • Diagram 8.5

Unions 50
Employer 50
Board of Trustees
Employer Chair
12
THE TOP 24 UNION CONTROL?
Unions 50
Employer 50
  • Jointly trusteed funds where Unions and employers
    are equally represented, with a legislated chair
  • Quebec Public Employees
  • Hydro Quebec
  • Quebec Teachers
  • Diagram 8.4

Government Ministry
Board of Trustees
Legislated Chair
13
THE TOP 24 UNION CONTROL?



Union
Union
Union
  • Jointly trusteed where
  • the affiliated Union
  • and the government
  • are sponsors, with an
  • independent chair
  • Ontario Teachers
  • Diagram 8.3


Union


Union
Union

Affiliated Union 50
Government 50
Board of Trustees
Independent Chair
14
THE TOP 24 UNION CONTROL?
Union 50
Employer 50
  • Jointly trusteed fund
  • Union and employer
  • equally represented
  • government trustee
  • selection
  • on union recommendation
  • trustee selection of chair
  • and vice chair
  • Alberta Public Service Pension Plan
  • Diagram 8.2

Government Ministry
Board of Trustees
Chair/Vice Chair (rotating)
15
THE TOP 24 UNION CONTROL?
Union 50
Employer 50
  • Jointly trusteed fund
  • Union and employer
  • equally represented
  • Union trustee selection
  • trustee selection of chair
  • and vice chair (rotating)
  • OPSEU Pension Trust
  • HOOPP
  • CAAT Plan
  • Diagram 8.1

Board of Trustees
Chair/Vice Chair (rotating)
16
THE TOP 24 PENSION FUNDS SOCIAL
INVESTMENT?Some Questions
  • Is there a difference between investment
    strategies of the financial industry/government
    staff/pension fund staff and those of union
    trustees?
  • What would a union agenda on investment look
    like?
  • What kind of training could the trade union
    movement provide to support union trustees in
    pension fund investment?
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