The majority of members in Local 37 are covered under the Public Service Superannuation pension plan (PSSA). Recently, the PSSA and other public service pensions have attracted some media attention when the government announced that due to market losses they had to account for a $300 million deficit that is related to potential pension shortfalls.
It's important to realise that this is a "paper" deficit only at this time. Pensions are required to be fully funded, so that if a plan were to shut down, enough money has been put aside to pay out the current and future pension benefits of all current and potential retirees. Pension contributions are invested by the New Brunswick Investment Management Corporation so that investment earning help offset the cost of benefits. In a situation like we have seen in the past twelve months, where investments have lost a significant portion of their value, the pension fund becomes underfunded, resulting in the reported deficit. The key thing to remember is that retirement benefits aren't paid out all at once and the investments are bound to bounce back before a lot of those pension benefits need to be paid.
Some special interest groups have suggested the government should convert the current pension plan from a defined benefit plan (a guaranteed retirement pension, based on your years of service and the average earnings) to a defined contribution plan (the employer would contribute a specific amount each year that you would be responsible for investing). The difference is that in a defined benefit plan, you are guaranteed a pension, but in a defined contribution plan, you retirement income is based on how your investments have made out. If the market crashes, or you made bad decisions, you may have a significant retirement income shortfall, or your retirement savings may eventually run out.
There is no question that defined benefit plans such as the PSSA are the best option to ensure that workers will have a proper retirement income and not become a burden on society. However, Finance Minister Victor Boudreau has said he will study the alternatives, and the Telegraph Journal published an editorial this past week encouraging the Government to change the PSSA to a defined contribution plan. Click on http://telegraphjournal.canadaeast.com/search/article/615335 to read the Telegraph Journal editorial.
I want all members to know that we are working hard to protect your pension plan. Pensions and the way they are funded are complex issues, and one of the challenges is to simplify the issue so that the average person (including some people who may not have pensions) can understand that the best and most economical long-term choice for both government and their workers continues to be a defined benefit plan.
I have already started the research process of gathering data and information that we will provide to Finance Minister Boudreau in order to prove that our existing plan is the best one for New Brunswick. We will keep members up to date on this important topic as we go forward.
It will also be important that members contact their MLAs to get their commitment to support the PSSA. The Union can write the most persuasive and logical letters to send to government, but there is simply no substitute for 2000 members calling their MLAs! Going forward, we'll provide the information to members that they will need to do this.
Sunday, March 29, 2009
Wednesday, March 25, 2009
The proposed "Energy Corridor" between New Brunswick and the State of Maine.
Earlier today I went to the press conference at which Premier Shawn Graham, Energy Minis
ter Jack Keir and State of Maine Governor John Baldacci announced a feasibility study for the development of an "Energy Corridor" between New Brunswick and the State of Maine. The Department of Energy's press release can be read at: http://www.gnb.ca/cnb/news/ene/2009e0380en.htm
The proposed corridor would be a "right of way" from New Brunswick travelling through Maine and into the lucrative Boston energy market. This corridor would contain electrical transmission, petrochemical and natural gas pipelines and other energy infrastructure. (Having a pre-approved corridor is a huge advantage to these type of projects. As things have stood in the past, it could take many, many years to obtain the multitude of licenses and approvals required by the State, townships and county's in the US. It took more than a decade for the regulatory approvals to build the International Power Line, and only 18 months to build.)
One advantage of this Energy Corridor for Local 37 is that if gets built, it will help speed the development of Point Lepreau II, by easing the transmission bottlenecks that currently exist between here and the US. Getting access to the US market is key for the commercial viability of additional nuclear units at Point Lepreau.
The other part of this announcement is that Irving Oil is going to invest in the project and they intend to build a natural gas power plant next to their new Liquid Natural Gas terminal in Saint John. This plant would be used to "level" the electrical load produced by the wind projects being built in New Brunswick.
It's important that Local 37 stay on top of these new developments. For example, they have said that they're looking at underground electrical transmission along the corridor, not a traditional above ground transmission system. Will our members be properly trained to construct this type of system? Will other unions (ones who normally construct underground pipelines) try to claim it as their work? What about the emergence of Irving Oil as an electrical generator? How do we forge a relationship with them so our members will have as many job opportunities as possible in the developing energy hub?
Whether we like it or not, the world and the way our energy markets work are changing. There are opportunities as well as threats in our changing energy environment and it's important that we find ways to reduce any risks to our union and it's members, but also look for ways to take advantage of the opportunities and growth that will be occurring.
(Top photo, L to R: A representative of Irving Oil, Maine State Governor John Baldacci and Premier Shawn Graham. Bottom Photo: Energy Minister Jack Keir looks on from the podium)
ter Jack Keir and State of Maine Governor John Baldacci announced a feasibility study for the development of an "Energy Corridor" between New Brunswick and the State of Maine. The Department of Energy's press release can be read at: http://www.gnb.ca/cnb/news/ene/2009e0380en.htm
The proposed corridor would be a "right of way" from New Brunswick travelling through Maine and into the lucrative Boston energy market. This corridor would contain electrical transmission, petrochemical and natural gas pipelines and other energy infrastructure. (Having a pre-approved corridor is a huge advantage to these type of projects. As things have stood in the past, it could take many, many years to obtain the multitude of licenses and approvals required by the State, townships and county's in the US. It took more than a decade for the regulatory approvals to build the International Power Line, and only 18 months to build.)
One advantage of this Energy Corridor for Local 37 is that if gets built, it will help speed the development of Point Lepreau II, by easing the transmission bottlenecks that currently exist between here and the US. Getting access to the US market is key for the commercial viability of additional nuclear units at Point Lepreau.
The other part of this announcement is that Irving Oil is going to invest in the project and they intend to build a natural gas power plant next to their new Liquid Natural Gas terminal in Saint John. This plant would be used to "level" the electrical load produced by the wind projects being built in New Brunswick.
It's important that Local 37 stay on top of these new developments. For example, they have said that they're looking at underground electrical transmission along the corridor, not a traditional above ground transmission system. Will our members be properly trained to construct this type of system? Will other unions (ones who normally construct underground pipelines) try to claim it as their work? What about the emergence of Irving Oil as an electrical generator? How do we forge a relationship with them so our members will have as many job opportunities as possible in the developing energy hub?Whether we like it or not, the world and the way our energy markets work are changing. There are opportunities as well as threats in our changing energy environment and it's important that we find ways to reduce any risks to our union and it's members, but also look for ways to take advantage of the opportunities and growth that will be occurring.
(Top photo, L to R: A representative of Irving Oil, Maine State Governor John Baldacci and Premier Shawn Graham. Bottom Photo: Energy Minister Jack Keir looks on from the podium)
Sunday, March 22, 2009
A little bit about my history with the IBEW
I thought I'd lighten things up, and instead of talking about an issue affecting union members, I'd tell all of you a little about me and my involvement with the IBEW.
In 1992 I started work as a Temporary in Point Lepreau's Health Physics lab after having graduated as a Chemical Technologist. (The people in Health Physics record and track the radiation "dose" that workers receive, as well as measuring and recording any environmental releases of radiation. Releases and worker exposure are both extremely low.)
After I had been there a while, the Shop Steward in my department invited me to attend a union meeting. My Grandfather had been the national Vice President of the International Longshoreman's Association and although I never knew him (he died when I very young) I had a favourable impression of unions. As a result of the invitation, I attended that meeting and became very interested in the union. I think in five years I might have missed two meetings.
I had been attending monthly unit meetings regularly for two or three years when elections eventually rolled around. At the time, the existing Unit Chairperson decided to step down and I heard that a certain person was going to throw their hat in the ring. The problem for me was that I had seen this person in action -- they seemed to have a chip on their shoulder, and it always seemed to me that this person looked for ways to create conflict, rather than solve problems.
Even then, I had some strong feelings about the right way of handling issues. I believed , as I still do, that you can be hard on an issue, but soft on the people. It's not necessary to create needless conflicts and bad feelings in order to deal with problems, in fact it's counter productive. I think it's better to take the high road.
I also feel that if you don't think something is right, you should either do something about it or keep quiet -- just don't complain and do nothing. So, I decided to run for the Unit Chairperson's job -- not because I had ever planned to take on a leadership role, but because I thought the alternative would be a disaster for our members. I ended up winning that election for Unit Chairperson, and as a consequence became a member of the Executive Board.
To make a long story short, in 1996 two new groups within NB Power (the Engineers and the Supervisors) decided to join the IBEW. About the same time, my temporary job came to an end and I was laid off. With our membership numbers growing, the union needed another person in the office and the Business Manager at the time, John Cole, asked me to work for him as an Assistant Business Manager, which I did. About six months later, I was offered a recall to a regular positon with NB Power, but I decided to stick where I was, and turned them down.
The rest as they say, is history, and I've now been working for the IBEW for over a dozen years. I've done a lot of things in that time -- grievances, adjudications, labour board hearings, negotiations, lobbying, etc. You name it, it seems like I've done it. But one thing hasn't changed, and that's my desire to help people when I can and to always take the high road.
In 1992 I started work as a Temporary in Point Lepreau's Health Physics lab after having graduated as a Chemical Technologist. (The people in Health Physics record and track the radiation "dose" that workers receive, as well as measuring and recording any environmental releases of radiation. Releases and worker exposure are both extremely low.)
After I had been there a while, the Shop Steward in my department invited me to attend a union meeting. My Grandfather had been the national Vice President of the International Longshoreman's Association and although I never knew him (he died when I very young) I had a favourable impression of unions. As a result of the invitation, I attended that meeting and became very interested in the union. I think in five years I might have missed two meetings.
I had been attending monthly unit meetings regularly for two or three years when elections eventually rolled around. At the time, the existing Unit Chairperson decided to step down and I heard that a certain person was going to throw their hat in the ring. The problem for me was that I had seen this person in action -- they seemed to have a chip on their shoulder, and it always seemed to me that this person looked for ways to create conflict, rather than solve problems.
Even then, I had some strong feelings about the right way of handling issues. I believed , as I still do, that you can be hard on an issue, but soft on the people. It's not necessary to create needless conflicts and bad feelings in order to deal with problems, in fact it's counter productive. I think it's better to take the high road.
I also feel that if you don't think something is right, you should either do something about it or keep quiet -- just don't complain and do nothing. So, I decided to run for the Unit Chairperson's job -- not because I had ever planned to take on a leadership role, but because I thought the alternative would be a disaster for our members. I ended up winning that election for Unit Chairperson, and as a consequence became a member of the Executive Board.
To make a long story short, in 1996 two new groups within NB Power (the Engineers and the Supervisors) decided to join the IBEW. About the same time, my temporary job came to an end and I was laid off. With our membership numbers growing, the union needed another person in the office and the Business Manager at the time, John Cole, asked me to work for him as an Assistant Business Manager, which I did. About six months later, I was offered a recall to a regular positon with NB Power, but I decided to stick where I was, and turned them down.
The rest as they say, is history, and I've now been working for the IBEW for over a dozen years. I've done a lot of things in that time -- grievances, adjudications, labour board hearings, negotiations, lobbying, etc. You name it, it seems like I've done it. But one thing hasn't changed, and that's my desire to help people when I can and to always take the high road.
Tuesday, March 17, 2009
The impact of the Provincial Government's wage restraint policy and thoughts on moving forward.
The declining world economy has caused a difficult year for many people in New Brunswick, and this past week the impacts hit all members of the Public Service, including our members at NB Power.
As reported in the media and on the Local 37 website, last week the New Brunswick Government announced that they were going to run an $800 million deficit budget. Part of this deficit is caused by declining revenues -- for example, last year the New Brunswick Government collected over $110 million in royalties and taxes from the mining sector, but with the downturn in the economy, revenues from that sector are expected to be less than $10 million. The loss of revenue from this and other sectors is a big part of the problem.
One part of the deficit is related to almost $300 million in investment losses in our Public Service Superannuation (PSSA) pension fund. I want you to know that this is a "paper" loss that has to be accounted for, but there is a likelihood that as the markets recover the fund will gain back much that it has lost. I also want you to know that Premier Graham told us that he is committed to maintaining our pension plan.
Government is proposing a four year plan to return to a balanced position, but as part of that, they announced job cuts, a hiring freeze for part of the civil service and a wage restraint policy which will impose a two-year wage freeze on all public employees, including Crown Corporations such as NB Power. The Government has said they will not break current agreements, but as agreements expire and are renegotiated, the two year freeze will be phased in.
The hiring freeze and job cuts should not affect NB Power. The wage freeze will affect Local 37 members at NB Power as our current agreements expire and come up for renegotiation. The first agreement that will be affected will be the Nuclear Contract which expires in 2010, then Generation in 2011 and Distribution and Transmission at the end of 2012. That means there is some time before the impacts will be felt by members.
The reality is that there may be a lot of changes between now and then -- the economy can improve, or it could get worse. The key thing I want all of you to know is that we will stay on top of developments in this situation.
No one, least of all me, is happy to be in this position. The simple fact is we are part of a global economy and although Canada is better off than some countries, we can't escape all of the fallout. A lot of people are facing some pretty tough times, with job losses and other serious impacts. We could be in worse shape.
As we go forward and renegotiate our next contracts, we will deal with whatever situation exists at that time. I am sure that there are meaningful improvements we can make, even in the context of a wage restraint policy.
I also strongly believe that even more than before, the key to secure jobs and future gains are to be had by embracing the values of the IBEW Code of Excellence -- having the most productive workers, the best trained workers, and producing the highest quality of work.
If we embrace these values, we invest in our future, and that is what will help us weather the storms we face.
As reported in the media and on the Local 37 website, last week the New Brunswick Government announced that they were going to run an $800 million deficit budget. Part of this deficit is caused by declining revenues -- for example, last year the New Brunswick Government collected over $110 million in royalties and taxes from the mining sector, but with the downturn in the economy, revenues from that sector are expected to be less than $10 million. The loss of revenue from this and other sectors is a big part of the problem.
One part of the deficit is related to almost $300 million in investment losses in our Public Service Superannuation (PSSA) pension fund. I want you to know that this is a "paper" loss that has to be accounted for, but there is a likelihood that as the markets recover the fund will gain back much that it has lost. I also want you to know that Premier Graham told us that he is committed to maintaining our pension plan.
Government is proposing a four year plan to return to a balanced position, but as part of that, they announced job cuts, a hiring freeze for part of the civil service and a wage restraint policy which will impose a two-year wage freeze on all public employees, including Crown Corporations such as NB Power. The Government has said they will not break current agreements, but as agreements expire and are renegotiated, the two year freeze will be phased in.
The hiring freeze and job cuts should not affect NB Power. The wage freeze will affect Local 37 members at NB Power as our current agreements expire and come up for renegotiation. The first agreement that will be affected will be the Nuclear Contract which expires in 2010, then Generation in 2011 and Distribution and Transmission at the end of 2012. That means there is some time before the impacts will be felt by members.
The reality is that there may be a lot of changes between now and then -- the economy can improve, or it could get worse. The key thing I want all of you to know is that we will stay on top of developments in this situation.
No one, least of all me, is happy to be in this position. The simple fact is we are part of a global economy and although Canada is better off than some countries, we can't escape all of the fallout. A lot of people are facing some pretty tough times, with job losses and other serious impacts. We could be in worse shape.
As we go forward and renegotiate our next contracts, we will deal with whatever situation exists at that time. I am sure that there are meaningful improvements we can make, even in the context of a wage restraint policy.
I also strongly believe that even more than before, the key to secure jobs and future gains are to be had by embracing the values of the IBEW Code of Excellence -- having the most productive workers, the best trained workers, and producing the highest quality of work.
If we embrace these values, we invest in our future, and that is what will help us weather the storms we face.
Thursday, March 12, 2009
A big THANK YOU for Rhonda Nicholson.
Rhonda Nicholson is a Local 37 member working in the Moncton area. Several years ago, she started to produce a daily e-newsletter for active living. Every day, she distributes a newsletter that has an inspiring quotation, health tips, a healthy recipe and, to lighten things up, some cartoons. I don't know how many people receive her newsletter - I suspect it's a large list - because she sends it to anyone and everyone who wants it. I've been on her list for the last four or five years, and I can honestly say I look forward to getting my active living newsletter every day.
The remarkable, and noteworthy, thing is that the active living newsletter for today was Rhonda's 2000th newsletter! Imagine Rhonda's dedication in producing a newsletter, on her own time, day after day, 2000 times.
What I really like, is this is a great example of someone who decided to take matters into her own hands, to do something that without question has had a positive impact on the health of her co-workers. And she's doing it not for some kind of tangible personal reward, other than the desire to do something to help others.
In my books, Rhonda is an inspiration for all of us.
The remarkable, and noteworthy, thing is that the active living newsletter for today was Rhonda's 2000th newsletter! Imagine Rhonda's dedication in producing a newsletter, on her own time, day after day, 2000 times.
What I really like, is this is a great example of someone who decided to take matters into her own hands, to do something that without question has had a positive impact on the health of her co-workers. And she's doing it not for some kind of tangible personal reward, other than the desire to do something to help others.
In my books, Rhonda is an inspiration for all of us.
Subscribe to:
Posts (Atom)