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Union denounces "deception" by N.S. hospital association over pension surplus
ALISON AULD - CP
November 01, 2006
Unions representing thousands of hospital workers in Nova Scotia have accused their employer of deceiving them about pensions as they moved closer to a strike that could disrupt health care throughout the province.
Officials with the Canadian Union of Public Employees said Friday the government agency that represents the province's eight district health authorities has been filing inaccurate statements about the workers' pension plan for several years.
Kevin Skerrett said newly released and revised documents show the Nova Scotia Association of Hospital Organizations had been using a surplus in the pension plan for employer contributions.
The union also alleges that the association failed to inform the provincial superintendent of pensions as to how the surplus was being used.
"It's difficult for us to believe that this was an accident or a coincidence," Skerrett said at a news conference, just days before more than 6,000 hospital employees are poised to walk off the job next week.
"All of those millions of surplus that were spent on employer contributions could have been, and should have been, used to improve the plan for the members."
The allegation centres on the fact that a pension surplus was used by the association to go toward the employers' contribution to the fund. The union said the association has repeatedly insisted that the surplus was not used this way.
But CUPE officials received documents two days ago showing that the association had used more than $58 million in surplus from 1997 to 2005 to go toward the fund.
"It certainly is a misrepresentation of what happened with the funding of this plan and is cause for some speculation," said Susan Philpott, a pension lawyer retained by the union.
Robert Cook, president and CEO of the association, said the discrepancy in the figures was the result of a mistake that will be corrected for future filings.
"All I can tell you when I inquired about it, it was described as an honest error," he said in an interview. "They kind of referred back to the previous year without necessarily digging in and looking closely at the words."
Cook disputed the union's other assertion that the association breached rules governing the pension by not informing the provincial superintendent of pensions as to how the surplus was being used.
He also said the association is free to moderate the pension contributions by using the surplus.
Health Minister Chris d'Entremont said he had not seen the disputed documents, saying that while he was "focused" on trying to avert a strike, it ultimately was the responsibility of the association to resolve the outstanding issues.
He has argued that the pension issue should not be the major obstacle in talks, a comment that incensed union officials who see it as a crucial part of any future negotiations.
D'Entremont said increased wages and benefits, combined with improvements to retiree benefits, would increase costs to the province "up and over the $100-million range."
Some 3,600 technical, clerical and service workers with CUPE are preparing to walk off the job Nov. 1. The union has members in virtually every hospital and clinic outside metro Halifax.
Another 3,000 workers with the Canadian Auto Workers will be in a legal strike position Nov. 3. The union represents workers in a variety of areas - from security to social workers - in Cape Breton, the IWK Health Centre in Halifax, and the Antigonish and Guysborough areas.
Hospitals in all areas of the province have already begun cancelling surgeries in anticipation of a strike.
A plan is also in place for non-unionized staff from the IWK Health Centre in Halifax to fill in at some of the affected hospitals.
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