Title: The Top 24: Union Control
1The Top 24 Union Control?
- UNION PENSION FUND TRUSTEES IN CANADA
- AND
- CONTROL OVER INVESTMENT
2The 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
3Barriers 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
4WHAT IS SOCIAL INVESTMENT?
- There are three types of social investment
- Ethical investment, or screening
- Shareholder activism, or corporate
governance - Economically targeted investment
5THE 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.
6THE 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
7THE 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
8THE 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
9THE 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
10THE 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
11THE 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
12THE 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
13THE 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
14THE 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)
15THE 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)
16THE 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?