“Pensions are a deferred pay cheque. Workers have put in their hours, their hard work, and have earned those pensions. That investment deserves to be protected,” said Bea Bruske, President of the Canadian Labour Congress. “At a time when so many families are finding their budgets tight and anxiety around finances rising, it is important for workers to know their pension is protected.”   

The Canadian Labour Congress has been advocating for changes to the Bankruptcy Act and the Pensions Benefit Act for decades. Canada’s unions have worked alongside many New Democrat MPs over the years; including Daniel Blaikie (C-225), Scott Duvall (C-259) and Pat Martin (C-281), to previously bring forth elements of today’s Pension Protection Act (C-228). With today’s cross-partisan collaboration, MPs can now make protection for Canadian pensioners the law.

“For decades we have seen companies pay out creditors, even pay out bonuses to executives after declaring bankruptcy, while workers wait at the back of the line,” added Bruske. “The current law says if a company goes bankrupt, their taxes, lenders and suppliers are all paid before employees get their pensions, severance, or even are paid their wages for work they’ve already completed. This is unfair.”

Opposition MPs have now agreed on amendments so the Pension Protection Act, in addition to covering pensions in bankruptcy and insolvency proceedings, will also protect termination and severance pay of workers. The bill, with support of these three parties, will now move on to the Finance Committee for review and amendment before returning to the House for final approval. It now has sufficient support to become law.

-30-

To arrange an interview, please contact:
CLC Media Relations
media@clcctc.ca
613-526-7426

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Canada’s elderly population is growing: Statistics Canada reports that nearly one in every five Canadians is 65 years of age or older. Nearly one in five current retirees have less than $25,000 in savings and investments.

“Our population is aging, but we don’t currently have adequate supports to help keep seniors out of poverty in retirement,” said Bea Bruske, President of the CLC. “With the economic upheaval brought on by COVID, more than one in ten Canadians now say they do not expect to ever retire. And as the number of private-sector workers covered by a decent workplace pension steadily declines, strong public pension benefits are crucial to helping people retire with dignity.”

Over 2 million seniors with low and modest incomes rely on the Guaranteed Income Supplement each month. The current bout of relatively high inflation is especially difficult for pensioners on fixed incomes.

Thankfully, Canada’s public pension benefits – Old Age Security, the Guaranteed Income Supplement and the Canada and Quebec Pension Plans – remain fully indexed against inflation. This inflation protection is yet another reason to expand Canada’s universal public pensions.

“Canada’s unions have been calling for the federal government to expand our social safety net as part of their pandemic recovery plans. Seniors were especially vulnerable to the health impacts of COVID-19, and now many are struggling to manage the financial impacts as well. We owe it to the seniors who helped build this country to ensure that they aren’t left behind in Canada’s recovery plans,” said Bruske.

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“We urge all parties to adopt this legislation,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC). “Workers and pensioners should not be written off as expendable in insolvency proceedings as they were in the Laurentian University disaster. Canada’s unions have long called for changes to bankruptcy laws so that workers and pensioners are first in line, not last, when it comes to paying creditors and we are pleased to see these proposed changes in Bill C-253.”

After a lifetime of hard work, nobody should have to struggle to make ends meet in retirement. Bill C-253 addresses many concerns advocates have had with the Companies’ Creditors Arrangements Act (CCAA) and the Bankruptcy and Insolvency Act (BIA). It amends the CCAA and BIA to ensure that workers’ wages, pensions and benefit programs are funded ahead of shareholder bonuses and payouts.

“In heartbreaking cases like Sears, we’ve seen how these insolvency filings play out, and workers and retirees are left holding the bag,” said Yussuff. “This bill will right those wrongs for future filings, and ensure that workers are treated with dignity and respect.”

Canada’s unions continue to encourage the federal government to work with the provinces and territories to create Canada-wide mandatory pension insurance. This would take worker protections a step further by guaranteeing monthly pensions whenever an employer with an underfunded pension plan files for bankruptcy.

To learn more about what we’re doing to strengthen pensions and Canada’s social safety net, visit canadianplan.ca.

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“We know that universal, public pharmacare will be less expensive and keep more people healthy and out of the hospital,” said Hassan Yussuff, President of the Canadian Labour Congress. “For 7.5 million Canadians that are uninsured or underinsured, pharmacare won’t just change their lives, it can save them.”

Canada’s minority governments have a history of advancing public policies that have significantly improved the lives of millions of families. On top of pharmacare, labour activists are also pressing the need for a $15 federal minimum wage, protections for worker pensions and the ratification of ILO Convention 190 on ending violence and harassment at work.

“On C-190, Canada brought this to the ILO and we have an opportunity to show real leadership by becoming one of the first countries to ratify it,” said Yussuff.

The creation of a federal minimum wage for workers in federally regulated workplaces would lift up more than 70,000 workers. These workers have been without a minimum wage since 1996, it is long overdue.

It has also been too long that workers have been told they have to wait for the creditors to be paid before they get the pensions they are owed. The government needs to protect these workers so they can retire with confidence.

“This government has a historic opportunity, and mandate, to build a more progressive Canada,” added Yussuff. “When Canadian workers come together, our collective voice has real weight with decision-makers. Canada must grasp this opportunity to make pharmacare a reality and improve Canadians’ lives.”

The Canadian Labour Congress is the voice of Canada’s labour movement representing over 3 million union members who work in every industry across the country.

To arrange an interview, please contact:

CLC Media Relations
media@clcctc.ca
613-526-7426

The post Hundreds of activists bring union priorities to the Hill appeared first on Canadian Labour Congress.

“Gender Equality Week was created to celebrate recent gains while reflecting on the work that needs to be done to improve gender equality and women’s rights across Canada,” said Marie Clarke Walker, Secretary-Treasurer of the Canadian Labour Congress (CLC). “With a federal election underway, we are asking political leaders to take this opportunity to prove their commitment to women’s rights and gender equality.”

Gender Equality Week runs from September 22 to 28, 2019 and was first introduced by the federal government in 2018 through Bill C-309, the Gender Equality Act. This year’s theme is #EveryoneBenefits and is inspired by the vision of a gender equal society and the benefits of advancing gender equality to women, men and people of all gender identities.

“On election day, voters will have the chance to reject the politics of division by voting for a party that stands firmly for gender equality and women’s rights,” said Clarke Walker. “We hope to make that choice much easier by asking candidates to distinguish themselves through concrete platform commitments.” 

The CLC’s plan for “A Fair Canada for Everyone” asks political parties to commit to taking action on five key priorities for working people and their families – actions that can make a real difference for women and help promote gender equality.

Women deserve good jobs, liveable wages and fair working conditions.

Unions are calling for action on pay and employment equity, access to universal, affordable child care and a federal task force on care work and care jobs.

Women deserve opportunities to learn and advance their careers. They deserve adequate support to balance work, family and personal time.

Women should not face barriers in accessing medication.

Many women do not have workplace benefits and face difficult choices when they or a loved one requires medication they cannot afford. Everyone in Canada deserves a universal, single-payer, public prescription drug plan that would guarantee pharmacare for all.

Women deserve retirement security.

Thanks to the persistent gender pay gap, senior women are among Canada’s poorest populations. After a lifetime of hard work (whether paid or unpaid), no one should have to struggle to make ends meet. Action on retirement security means improved Old Age Security benefits and a reformed Guaranteed Income Supplement.

Women must be at the centre of climate action.

The climate crisis will have a disproportionate impact on women and marginalized populations. Smart investments in a clean future will put people at the centre of climate action. Investments in renewable energy, clean technology and green manufacturing can provide a source of good, green jobs for women. Climate action can also include investments in social infrastructure to help create and support good jobs and resilient communities.

Women deserve a government focused on equity and inclusion.

Canadians need a government committed to challenging hate and intolerance in all its forms. They need a government ready to improve our immigration and refugee policies, track and report on hate groups, and commit to strengthening Canada’s action plan against racism.

They also need an action plan to implement the recommendations of the National Inquiry into Missing and Murdered Indigenous Women and Girls and the Truth and Reconciliation Commission.

“The CLC’s election campaign outlines a plan that would promote gender equality and make a real difference in the lives of women and their families,” said Clarke Walker. “Everyone benefits if we unite together to challenge racism, welcome refugees and support real reconciliation with Indigenous peoples. This election we are demanding fairness.”

This Gender Equality Week, unions are calling on voters to attend local election town halls and debates to ask candidates what their party is prepared to do to promote gender equality and a fairer Canada for everyone.

CLC Secretary-Treasurer Marie Clarke Walker will be hosting a Facebook Live event on Wednesday, September 25 at noon EST featuring a conversation about what is at stake for gender equality in the federal election.

Voters can sign up for real-time election updates from the CLC as the campaign progresses.

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You can be forgiven if you’ve avoided thinking about the upcoming federal election all summer, but Labour Day is here. That means it’s time to return to the fall routine and start thinking about how you are going to cast your ballot.

You may have seen politicians working the barbecue circuit, vying for the support of workers and their families. They often claim to know what voters need. Let’s tell them what voters want.

After all, voting for the country we want is both a cherished right, and a significant responsibility.  And it’s under threat.

Lies, misinformation, and propaganda proliferating online are dividing and distracting people like never before.

We know that domestic and foreign actors will likely continue to foment division through contentious topics like immigration and the environment. We must remain united and focused on what truly matters: a present and future that leaves no one behind.

Not only are we facing an uncertain future, but the strides working people have made in the last four years are also in jeopardy. 

Canada’s unions are cutting through the noise with a simple message to voters: Canadians must elect a government that is committed to a fair Canada for everyone.

This is much more than a slogan but a clear call to action on five key areas that will shape the future of this country. Each of them centre on the health and well-being of Canadians.

Canada’s unions have successfully worked with governments and health experts to make universal pharmacare a ballot box issue this fall.

That’s because over 3.5 million Canadians struggle to pay for the medications they need. Private insurers and pharmaceutical companies have a vested interest in preserving a status quo that sees Canadians paying some of the highest drug prices in the world. Canada remains the only developed country with universal health care, without a universal pharmacare plan. A single-payer system would rein in drug prices and save Canadians over four billion dollars per year, according to the Parliamentary Budget Officer.

Also key to the well-being of Canadians is the assurance that they will be able to live in dignity in retirement. Following the Conservative party’s defeat in the last federal election, Canada’s unions lobbied for an expansion of public pensions and won a 50% increase to Canada Pension Plan benefits, along with top-up payments for 900,000 low-income single seniors and the restoration of Old Age Security and Guaranteed Income Supplement for those over the age of 65, down from 67.

We need a government that is committed to improving public pensions and protecting hard-earned private pensions when employers go bankrupt. 

We also need to talk about the economic health of our nation’s working people. With a rise in precarious, temporary, and low-wage work, more and more people are struggling to get by. We need to vote for a government that clearly defines what it will invest towards creating good jobs for all Canadians.

It’s also time for bold action that tackles our climate emergency while creating economic opportunities in green industries. We deserve a government that is committed to clean air and water, invests in public transportation, and supports workers and communities transitioning to a greener economy.

With hardline Conservative governments now running the majority of the provinces, we cannot forget what a decade of Stephen Harper’s Conservatives did to working people and their families and risk the rollback of hard-won social gains and the rewriting of the Canadian constitution.

Can Canadians afford a government that cares more about private corporations and tax cuts for the super-rich than it does about everyday working people? Can we risk electing a government that refuses to address the climate catastrophe? Can we accept a government that is prepared to exploit people’s fear and insecurity to fuel racism and intolerance?

This Labour Day, let’s recommit to standing together for an inclusive Canada where everyone prospers.

Hassan Yussuff is the President of the Canadian Labour Congress. Follow him on Twitter @Hassan_Yussuff.

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That means unions will be calling on Canadian workers to vote for candidates who support universal pharmacare, retirement security, climate action, equity and inclusion, and good jobs for everyone.

“Over the last four years, our work has resulted in impressive gains: expanding public pensions, protecting victims of domestic violence, investing billions in infrastructure projects, banning asbestos, and making pay equity the law,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC).

“While these have been substantial victories, we are only getting started. Low wages, precarious work and underemployment continue to hurt too many Canadians; fear and insecurity are fueling racism and intolerance, and climate change threatens the survival of our planet.”

“We will do our part to mobilize Canadians to choose candidates who will make Canada more fair for workers and their families,” said Yussuff.

“We will be urging every candidate to commit to creating good jobs. We will be pushing the political parties for climate action for a sustainable planet. We will be challenging hate and divisiveness with equity and inclusion.”

By launching a national campaign, “A Fair Canada for Everyone”, the CLC will be working with labour councils, federations of labour and unions across the country to advance the issues at stake for workers and their families.

“Labour Day is a national reminder that workers can come together to improve workplaces and communities, so it is a fitting time to launch our election campaign for a fair Canada for everyone,” adds Yussuff.

To read details about what unions are calling for in this election, visit faircanadaforeveryone.ca

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On Friday, June 14, Brazilian trade union national centres, grassroots unions, students, and popular and social movements are going on a national general strike to protest government neoliberal reforms to the Brazilian social security system. These reforms attack poorer workers while maintaining the privilege of the elites. Brazilian trade union leaders warn that if the reforms are not stopped, the right to retirement will disappear.

Both the government that took power in Brazil after the coup d’état in 2016, and the government elected in 2018 after the illegitimate imprisonment of former President Lula, have implemented a series of measures to weaken and eliminate workers’ rights.

“Social security should not be a privilege for the few who can pay for a private-based system,” says Hassan Yussuff, CLC President and President of the Trade Union Confederation of the Americas. “We join Brazilian workers in fighting neoliberal policies that threaten the security and dignity of workers worldwide.”

The post National strike in Brazil appeared first on Canadian Labour Congress.

A statement issued by Canada’s finance ministers today promises “to provide greater benefits to parents whose income drops after the birth or adoption of their child [and] to persons with disabilities.”

“We were very surprised to learn that child-rearing and disability protections weren’t included in last year’s hard-won CPP expansion,” said CLC President Hassan Yussuff.

“For 18 months we’ve called on the government to fix the problem by fully protecting workers with disabilities and workers who take time off work to raise their children,” he added.

Unions and women’s groups fought for years to include protections that ensured that parents who took time off to raise children – mostly women – could exclude or “drop-out” periods of low and zero earnings from the calculation of their retirement benefit.

A disability drop-out excludes periods in which a worker has become severe and chronically disabled and is receiving CPP disability benefits.

When the finance ministers agreed in June 2016 to expand the CPP, unions believed these drop-outs would continue to apply in the enhanced benefit. They didn’t.

“We’ll be asking for more details on what the finance ministers are planning,” said Yussuff.

“We know that including these protections in the expanded CPP can mean thousands of dollars more in retirement for parents – especially women – and workers who lost income because of injuries or disabilities, and we want to ensure this problem is fixed once and for all,” he added.

The post Canada’s unions say they hope finance ministers are fixing CPP inequities appeared first on Canadian Labour Congress.

“Winning a stronger CPP has been a key priority for us for years and is an excellent example of the good that can come from collaborative work between unions and governments at the federal and provincial level,” said CLC President Hassan Yussuff.

“This increase will benefit today’s young workers the most, which is especially important in a world where good, secure jobs are so hard to come by, making saving almost impossible,” he added.

Yussuff said he welcomed the government’s acknowledgment that amendments were needed to ensure that no Canadians, particularly women and persons with disabilities, are excluded from the benefits outlined in Bill C-26.

“This oversight means the legislation, unless amended, discriminates against anyone who leaves the workforce to care for children or for health reasons, disproportionately disadvantaging women and workers with disabilities. We hope the government will work with the provinces to amend the legislation as soon as possible and correct this oversight,” said Yussuff.

CPP expansion has been a priority for Canada’s unions for decades, despite the fact that the majority of union members have pension plans at work. Here’s why:

• Fewer than 40 percent of Canadian workers have access to a pension plan at work. In the private sector, that number drops to less than 25 percent, and for workers under 29, to just 13 percent;
• Today, even workers with a workplace pension plan or alternate savings are vulnerable to financial insecurity in retirement. Fewer employers are offering workplace pensions and more workplace pensions are seeing reduced benefits;
• The CPP follows workers from job to job, keeps up with the cost of living, and pays out benefits for life, regardless of how the stock market performs.

The post Canada’s unions celebrate adoption of CPP expansion legislation appeared first on Canadian Labour Congress.

“This bill was announced without consultation or advance notice, though it directly contradicts election promises to stabilize and improve retirement security,” said CLC President Hassan Yussuff, who wrote a letter to Finance Minister Bill Morneau outlining the CLC’s opposition to the bill.

Currently, defined-benefit (DB) pensions provide stability and security to employees because employers are legally obliged to fund employees’ earned benefits. Already earned benefits are legally protected. Bill C-27 removes employers’ legal requirements to fund plan benefits, which means that benefits could be reduced going forward or even retroactively. Even people already retired could find their existing benefits affected, after paying in their entire working lives.

The bill would also invite employers to establish inferior, less-secure target-benefit (TB) plans, and persuade individual members to give up their DB benefits in exchange for the new plan.

“Bill C-27 invites employers and other plan sponsors to abandon their pension promises to employees and retirees, downloading virtually all plan risks brought on by market volatility from employers to workers and retirees,” Yussuff wrote to Morneau. “This is an unconscionable betrayal of the legal rights and protections of plan members.”

In 2014 Stephen Harper’s Conservatives launched public consultations on a similar framework, but after overwhelmingly negative feedback from unions, retirees and other stakeholders, they scuttled the idea.

“This is very dangerous legislation that was even rejected by Harper’s Conservatives, and I’m urging the current government to abandon it now,” said Yussuff.

Yussuff noted the sole jurisdiction where employers are allowed to back out of promises to pay already-earned DB pensions is New Brunswick. Since 2012, when New Brunswick’s Conservative government introduced their legislation, New Brunswick has seen class action lawsuits, constitutional challenges, and plummeting defined-benefit planned membership.

“Instead of following the Conservatives’ example, we urge the federal government to strengthen and expand pension and retirement security. If they instead go ahead with C-27, we are prepared to work very hard to ensure Canadians’ opposition is heard loud and clear,” said Yussuff.

The post Canada’s unions call anti-pension bill C-27 a betrayal appeared first on Canadian Labour Congress.

Fitness Instructor

Jayden is a 24-year-old fitness instructor. He combines several part-time jobs at fitness centres around Mississauga and Etobicoke. His income fluctuates, but in a typical year he brings in about $27,500, roughly half the average wage.

At his current income level, Jayden was on track to retire after a working lifetime with a CPP benefit of about $480 a month. With the planned benefit increase, Jayden will receive an additional $150 a month in CPP retirement benefits, giving him a total CPP income of $7,585 a year, or about $630 a month.

This year, Jayden will contribute about $1,190 to the CPP. With the changes agreed to, Jayden will contribute another $265 annually. In addition to the tax credits Jayden already receives for his CPP contributions, the additional $265 in contributions will be tax-deductible, reducing Jayden’s net income when he files his income tax return.

Dental Assistant

Kendra is a part-time dental assistant in Calgary. In a typical year, she earns about $35,000, around two-thirds of the average wage.

With her current income, Kendra was expecting a CPP retirement benefit of about $695* a month. At the higher CPP benefit level agreed to by Ottawa and the provinces, Kendra would receive about $915 a month if she makes expanded contributions to the CPP over her whole career.

Kendra currently saves about $1,560 a year through the CPP. She will eventually put away another $350 a year. The additional contributions will be tax-deductible.

Bank Employee

Amanda is a loan officer working in a bank in Victoria, the same bank she has worked in since graduating with a Bachelor of Commerce from the University of Victoria. Her 2016 earnings will be $50,000, close to the average wage.

With this level of income, Amanda could have expected to receive an annual CPP retirement benefit of roughly $1,000 a month. With the enhanced CPP benefit, Amanda can look forward to about $1,310 per month.

In addition to the $2,300 a year that Amanda currently saves through the CPP (matched by her employer), she will save an additional $510 each year through the enhanced CPP. This additional contribution will be tax-deductible.

Electrician

Kyle is an experienced electrician living in Squamish, BC, and working for a company that manufactures and installs green home heating and cooling systems in the Lower Mainland. In 2016, he’ll earn $65,000, significantly more than the ceiling on earnings covered by the current CPP ($54,900).

Earning this level of income over a working lifetime, Kyle could expect to receive the maximum CPP retirement benefit: about $1,100 a month. With the new and improved CPP, all of Kyle’s earnings will go toward saving for a higher CPP retirement benefit. Instead of the $1,100 monthly maximum benefit Kyle could have hoped to receive, he will take home approximately $1,470 a month, an increase of almost $380.

In 2016, Kyle will contribute the maximum to CPP: about $2,545. With the changes made to CPP, Kyle will put more aside for retirement through the CPP. In 2016 terms, he will save an additional $950 a year, for a total CPP contribution of just under $3,500 a year (matched equally by his employer). Kyle’s additional contribution will be tax-deductible when he files his income tax return.

*all benefits calculated in 2016 dollars

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“Too many Canadians today are struggling in retirement and change is long overdue. Even though we had asked that the CPP be doubled, we appreciate that this will be the first increase in the plan’s history, and one that will benefit all Canadians,” said Canadian Labour Congress President Hassan Yussuff.

“We look forward to working with the provincial, territorial and federal governments to move the process forward quickly,” Yussuff added.

“It’s important to remember that this expansion of the Canada Pension Plan comes out of the federal government’s election commitment to address seniors’ poverty,” Yussuff said. He noted that in their spring budget, the federal government increased the Guaranteed Income Supplement for low-income seniors and returned the Old Age Security eligibility age to 65

Yussuff added that this issue is important for union and non-union workers, because even those employees with a workplace pension plan or alternate savings are vulnerable to financial insecurity in retirement. Fewer employers are offering workplace pensions, and more workplace pensions are seeing reduced benefits. By contrast, the CPP follows workers from job to job, keeps up with the cost of living, and pays out benefits for life, regardless of how the stock market performs.

“Canadian unions believe we all have a responsibility to work to end seniors’ poverty. We know that pensions are crucially important, not just to the well-being of workers and their families, but to the economic health and vitality of our cities and communities,” Yussuff said

The post Canadian unions celebrate announcement of universal CPP expansion appeared first on Canadian Labour Congress.

“With 600,000 Canadian seniors living in poverty, and 11 million workers lacking a workplace pension plan, retirement is something all Canadians need to start thinking about today. Even for employees with workplace pension plans, affording a modest retirement can be a struggle,” said CLC President Hassan Yussuff.

The campaign, “A Better Plan for All,” highlights this crisis that Canada is facing, and demonstrates how strengthening the Canada Pension Plan is the best solution for Canadians retiring now and in the future. 

At abetterplanforall.ca, Canadians are invited to learn more about the Canada Pension Plan, and to send a message to federal and provincial policy makers, who are currently discussing options for CPP expansion.

The campaign is anchored by a video ad called “The Watch,” which follows a retiring worker named Sam.

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Recognizing that many Canadians also have stories to share, the website will also feature Hourglass, a new original series of documentary shorts. Hourglass will roll out over the coming weeks with eight episodes featuring personal stories of life, work, aging and retirement from diverse Canadians in communities across the country.

Hassan Yussuff explained that Canadian unions have supported the Canada Pension Plan since the debate that led to its creation more than 50 years ago: “We know that pensions are crucially important, not just to the well-being of workers and their families, but to the economic health and vitality of our cities and communities too.”

“All workers – not just union members – deserve a stable and secure pension after a lifetime of hard work,” Yussuff added.

Visit abetterplanforall.ca to learn more and get involved.

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“We have been calling for the government to ensure the eligibility age remains at 65 since the Conservatives announced the change four years ago. It’s good to see our new government is listening,” said CLC President Hassan Yussuff.

Yussuff pointed out that the Conservatives’ move to raise the age of eligibility was totally unjustified in the first place. The Organisation for Economic Co-operation and Development and the Parliamentary Budget Office pointed out at the time that Old Age Security and the Guaranteed Income Supplement are affordable programs. Meanwhile, provinces were suddenly left facing lost revenue and higher costs as they scrambled to compensate for the Conservatives’ decision.

Yussuff views this move, and the government’s election commitment to increase Guaranteed Income Supplement benefits for single, low-income seniors, as a sign that the current government is committed to addressing seniors’ poverty.

“Rolling back the age restriction and increasing the GIS for those who need it most is a significant move to address seniors’ poverty. Now the missing piece is universal expansion of the Canada Pension Plan for tomorrow’s seniors,” Yussuff concluded.

The post Win for workers as government restores eligibility age for retirement benefits appeared first on Canadian Labour Congress.

“We hope Premier Wynne will consider putting the Ontario-only plan on hold and instead play a leadership role with the federal government, other provinces and the territories to push for a universal, pan-Canadian expansion of CPP benefits,” said Yussuff.

For years, the Ontario government pushed the federal government to allow finance ministers to explore CPP enhancement. That went nowhere with a Conservative government in place, but the new Liberal federal government campaigned on a promise to work with the provinces and territories on CPP enhancement.

“Premier Wynne’s majority mandate in 2014 was in no small measure due to her government’s promise to take action on widespread retirement insecurity. We commended the government then for its commitment to find a solution to this crisis, and we do now,” said Yussuff.

“Now we have a real opportunity to do what’s right for all Canadians instead of ending up with a patchwork approach that’s inefficient and leaves too many behind, and I believe Premier Wynne is well-placed to make that happen,” said Yussuff.

In December, finance ministers committed to working through the options to improve CPP benefits for the millions of Canadians who depend on it, but shied away from announcing any concrete plans.

Today, nearly two in three working Canadians – that’s 11 million workers – have no workplace pension plan.

Read more on the need for CPP expansion.

The post Ontario must hold off on ORPP and lead on CPP expansion instead appeared first on Canadian Labour Congress.

“Expanding the CPP is something Canadians support and it’s already long overdue,” said Canadian Labour Congress President Hassan Yussuff.

“We’ve had six years of consultation and research on this issue that we hope will inform the Ministers in this process and help them move forward quickly. We look forward to working with the provincial, territorial and federal governments to ensure an expanded CPP that benefits all Canadian workers,” Yussuff added.

Yussuff noted that nearly two in three working Canadians – 11 million workers – do not have a workplace pension plan.

“After a lifetime of hard work, no one should have to retire in poverty, yet that is what we see happening more and more. A universal expansion of the CPP is the best way to address our country’s retirement savings crisis,” Yussuff added.

Yussuff observed that even those workers with a workplace pension plan or alternate savings are vulnerable to financial insecurity in retirement. Fewer employers are offering workplace pensions, and more workplace pensions are seeing reduced benefits. By contrast, the CPP follows workers from job to job, keeps up with the cost of living, and pays out benefits for life, regardless of how the stock market performs.

Yussuff added: “Expanding the CPP is a smart move for governments and taxpayers. Because it is universal and funded exclusively by workers and their employers, it is extremely cost-effective and reliable.”

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers.

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With baby boomers about to retire in unprecedented numbers, the Conservative federal government largely ignored the looming crisis and insisted Canadians can just fend for themselves.

Now Canada has a new government that made a campaign commitment to expand the Canada Pension Plan (CPP), and this weekend, provincial and federal Finance Ministers are meeting to discuss the issue. Therefore, the Canadian Labour Congress is calling on the provinces to work with the federal government to realize their campaign pledge by committing to universal expansion of the CPP.

“Without government action, we are going to see seniors’ poverty continue to rise,” said CLC President Hassan Yussuff. “Fortunately there is a simple, fair, safe and effective solution: universal expansion of the CPP.”

It’s time for a universal expansion of the CPP:

• The CPP benefits everyone. It follows workers anywhere in Canada, no matter how many times they change jobs.
• The CPP is cost-effective. The CPP works well with low-management fees because of its universal and straightforward application. It keeps up with the cost of living and pays out benefits for life.
• The CPP is safe. Financed exclusively by workers and their employers, regardless of how the stock market performs, the CPP will be there when we need it.

The rate for CPP contributions was originally set up assuming that most workers would be able to supplement CPP savings with workplace pension plans. But now that employers are abandoning workplace pensions, the CPP is the only way in which most workers, especially young workers, routinely save for retirement.

Even a workplace pension isn’t always enough to guarantee retirement security. More and more workplace pension plans are seeing benefits reductions. And with life expectancies continuing to increase, employees covered by defined contribution plans run the risk of outliving their pension. The CPP doesn’t have that problem: it pays out benefits for life.

A small increase in Canada Pension Plan contributions could help make things easier. For less than a cup of coffee and a donut a day, the average worker could double their CPP benefits at retirement. Repeated polling has shown that an overwhelming majority of Canadians already support expanding the CPP through a small increase in contributions.

“I hope the Finance Ministers take a serious look at the retirement crisis our country is facing. Expanding the CPP for all working Canadians today is the best way to fight seniors’ poverty tomorrow,” Yussuff concluded.

Learn More:

• Expanding the CPP: Common Myths Debunked
• Timeline of Canadian Labour Congress campaign to expand the CPP

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“Canadians have soundly rejected the Conservatives’ politics of fear and division and have voted for change, and we look forward to working to ensure the Trudeau government delivers on the real change it has promised for working Canadians,” said CLC president Hassan Yussuff.

Yussuff highlighted key Liberal campaign promises he hopes the new government will act upon swiftly. Those included:

• Providing Canadians with a more secure retirement by enhancing the Canada Pension Plan, restoring the eligibility age for Old Age Security and the Guaranteed Income Supplement to 65, and increasing the GIS by 10 percent;
• Expanding training and apprenticeship opportunities to help Canadians – particularly young Canadians – find and keep good jobs;
• Significantly increasing infrastructure funding, including new, dedicated funding for public transit, social infrastructure like seniors and child care facilities, and green infrastructure;
• Beginning to turn back more than $36 billion in Conservative cuts to health care by investing $3 billion over the next four years to improve home care, mental health services and access to prescription drugs;
• Repealing the Conservatives’ fundamentally flawed, ideological anti-labour bills C-377 and C-525; and
• Immediately launching a national public inquiry into missing and murdered indigenous women.

Yussuff also raised significant concerns about the Liberals’ position on C-51 and the Trans-Pacific Partnership (TPP).

“The Conservatives’ so-called anti-terror legislation C-51 is an affront to Canadian values and our Charter of Rights and Freedoms,” said Yussuff. “Repealing the legislation, not just tinkering with it, is the only way to adequately safeguard Canadians’ rights and freedoms.” On the TPP, Yussuff urged the incoming government to make the full agreement details public, and added: “The new government must take action to protect our supply management system and Canadian jobs – including auto sector jobs – that are under serious threat from the TPP as it stands.”

Yussuff also encouraged the government to strengthen its position on child care by implementing an affordable child care system for all families.Yussuff concluded: “We encourage the incoming government to work constructively with the labour movement, to ensure Canadians see positive change.”

The Canadian Labour Congress represents over 3.3 million union members who work in every industry and live in every province and territory. We are the voice of Canada’s labour movement.

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“We know through polling that an overwhelming majority of Canadians already support expanding the CPP through increased mandatory contributions,” said CLC president Hassan Yussuff.
“Why stall with more consultations when there is already so much consensus around the right solution for Canada’s retirement crisis?” he asked.

The CLC has long held that a voluntary scheme won’t work.

“The CPP is so successful precisely because contributions are mandatory, not voluntary,” said Yussuff. 

“Voluntary contributions would be more complicated and costly to administer, and, would leave workers behind when employers choose not to match increases,” he added.

The rate for CPP contributions was originally set up assuming that most workers would be able to supplement CPP savings with workplace pension plans. But today, two in three working Canadians – that’s 11 million workers – have no workplace pension plan.

“After a lifetime of hard work, nobody should have to retire in poverty, and unless we act now, we are going to see more and more seniors facing that future,” said Yussuff.
“This government needs to listen to what Canadians are already saying and begin a phased-in doubling of the CPP,” he added.

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Canadians with disabilities commonly face severe challenges finding adequate and secure incomes. People with disabilities have lower employment rates and higher rates of under-employment than Canadians as a whole. They are at greater risk of living with low incomes than Canadians in general. The Daily Bread Food Bank’s Who’s Hungry report finds that the share of people with disabilities using food banks has nearly doubled since 2005 (from 17% to 28%), and the HungerCount 2014 report reveals that nearly one in five households using food banks depends on disability-related benefits as their primary income source.

The structure of disability benefits compounds the problem: for instance, the Disability Tax Credit is a non-refundable tax credit, meaning that persons with disabilities need a certain level of income in order to benefit from the tax credit in the first place. The Canada Pension Plan (CPP) disability benefit requires that a disability be severe and prolonged, making it difficult for Canadians suffering from fluctuating and episodic disabilities (like multiple sclerosis) to access the CPP disability benefit.

To make matters worse, the federal government has moved to make it harder for Canadians living with disabilities to access Canada Pension Plan disability benefits. Having carried out no studies to justify the creation of a new tribunal, the Conservative government’s April 2012 omnibus Bill C-38 replaced the Office of the Commissioner of Review Tribunals (OCRT) and the Pension Appeals Board with the Social Security Tribunal (SST).

The Pension Appeals Board had hundreds of referees hearing appeals, but the government replaced it with a tribunal with less than 70 full-time members, half of whom heard CPP and OAS (Old Age Security) appeals—all in a bid to save money. Not only was the SST intended to achieve savings of $20 million a year (which it has done), but it was also designed to accomplish a 25-per-cent reduction in the number of appeals heard. As a result, the tribunal’s 7,000 inherited appeals have swelled to a backlog of 11,000 cases, with the tribunal managing to hear less than 350 income-security appeals in the first year of operation. There have been no implementation of standards for processing appeals in a timely manner.

The government’s new budget implementation bill rescinds the original cap on full-time tribunal staff and removes restrictions on the hours of work of part-time staff, but this comes as too little, too late.

CPP disability benefits, like CPP retirement benefits, are too low to enable Canadians to live in dignity in retirement. The maximum amount that a CPP disability beneficiary can receive is 75% of the retirement benefit they are entitled to, plus a flat amount ($457.60 in December 2014). For someone entitled to receive the average monthly CPP retirement benefit ($540.56 in October 2014), this works out to just $863.02 a month.

Canadian Labour Congress (CLC) is calling on the federal government to agree to a fully-funded, phased-in doubling of future CPP benefits to achieve retirement security for all Canadians, including Canadians with disabilities. The labour movement’s plan also aims to increase the Guaranteed Income Supplement, which would have a significant impact on people with disabilities who have had lower incomes or who have been unable to work.

The CLC, its affiliates and federations of labour are partnering with provincial and territorial governments, pension experts, political parties, retirees and seniors’ groups and other allies across the country to raise awareness about Canada’s retirement crisis and the movement’s call on government to double CPP benefits. Together they will be hosting a series of public town hall meetings on retirement security.

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“On behalf of the Canadian Labour Congress’ 3.3 million members, I would like to recognize both National Seniors Day and the International Day of Older Persons and extend our gratitude to the countless seniors across the country who have contributed in countless ways to our communities and our country,”  says Hassan Yussuff, President of the Canadian Labour Congress.

Despite this deserved celebration, the sad fact is that many of our seniors are struggling and too many of today’s seniors live in poverty. Too many older workers are realizing their retirement plans have come up short because the investment returns they were promised never materialized or they simply could not save enough on their own.

Old-age poverty is increasing in Canada; the overall senior poverty rate jumped from 4.8% in 2006 to 6.8% in 2011 and is far higher among single seniors, new immigrants, and Aboriginal Canadians. Too many of today’s seniors are not doing as well as the government would have us think and too many of tomorrow’s seniors will face living their final years in poverty.

Most Canadians cannot save enough to ensure a decent retirement income. More than 60% of workers have no workplace pension at all, while existing workplace pensions are under attack.

The Harper government recently stated that it wants to introduce legislation that allows employers to convert defined-benefit plans to target-based pension plans which would put all the risk on workers.

RRSPs have been exposed as inadequate for the vast majority of working people.

The government’s proposed Pooled Registered Pension Plans, a new form of group RRSP, will not work, and extending the OAS eligibility age from 65 to 67 will make things worse, not better.

If nothing changes, the number of seniors living in poverty and financial insecurity will increase significantly.

“The best way to show seniors the respect they deserve would be to ensure that not one of them is faced with having to work until the day they die or living their final years in poverty,” says Yussuff. “It’s only fair that after a lifetime of work and giving to their communities, seniors know they will have enough to live the rest of their lives in dignity.”

The CLC has a plan to expand the Canada Pension Plan so it covers basic needs for tomorrow’s seniors and improves the Guaranteed Income Supplement to lift today’s seniors out of poverty. The CLC proposes to phase in a doubling of Canada Pension Plan benefits on a pre-funded basis. Our proposal would increase the average benefit each year, and would result in benefits replacing up to 50% of Canada’s average wage when fully implemented.

The CLC launched this campaign five years ago and has built a coalition of eight provincial governments who want to expand the CPP.

Expanding the CPP today will increase the retirement income and purchasing power of future generations of retirees.

Doubling CPP benefits will reduce retirees’ dependence on government transfer and services, like OAS/GIS, while improving retirement security for all.

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“Don’t be fooled by anything the government says about this initiative. It’s about attacking defined-benefit pension plans, pure and simple. If the government thinks the labour movement is going to stand idly by and watch employers tear up retirees’ pension cheques, they’ve got another thing coming,” said Yussuff.

Yussuff was commenting on the federal government’s consultation on a framework for converting defined-benefit pensions to target-benefit plans in the federal private sector and for Crown corporations. The proposed framework would involve workers paying more for reduced and less secure benefits. It would also allow once-secure pension benefits, earned for past service, to be reduced if the plan suffers a shortfall. On Wednesday, the Department of Finance hastily declared the end to consultations on the initiative.

Yussuff went on to say, “The government’s proposed plans don’t ‘share risk’, they shift it onto the backs of workers and pensioners. This will do absolutely nothing to address the crisis in retirement security, and will actually make the problem worse. Picture 75-year-old pensioners relying on monthly pension cheques having to cut their food budget and turn down the thermostat, all because their pension plan has a temporary funding shortfall. That’s what we’re talking about here.”

The CLC, its affiliates and a host of retiree associations all criticized the government’s target-benefit initiative. The CLC called on the federal government to withdraw its proposal to allow employers to walk away from pension promises already made to workers. Together with union affiliates, pension experts, youth groups, anti-poverty associations and retiree associations, the CLC calls on the federal government to improve retirement security for all Canadians by expanding the Canada Pension Plan.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 111 district labour councils

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

Contacts:  Chris Roberts, CLC Senior Researcher: Tel. 613-618-0610

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“If you think you can win by blaming workers for the problems caused by others, you better think again. People see the unfairness. They don’t like it. They will stand up to you and you will lose, just like Tim Hudak.” said Hassan Yussuff.

But that wasn’t the only message that Ontario voters sent, according to Yussuff. They delivered a message to Stephen Harper about retirement security by rejecting his own government’s arguments against expanding the Canada Pension Plan.

“Two in every three Ontario workers don’t have a workplace pension. Kathleen Wynne ran on her budget, and the centrepiece of that budget was a plan to improve the retirement security of Ontarians. Now it’s time for the federal government to accept that Canadians want action on retirement security.”

Yussuff was commenting on Thursday’s election results in Ontario. In its 2014 budget, the Ontario government proposed a provincial pension plan similar to the Canada Pension Plan. The province was provoked to begin developing the provincial plan after the federal government unilaterally ended discussions on CPP expansion in December 2013. Manitoba and PEI have joined the working group developing the Ontario Retirement Pension Plan, and other provinces are deliberating whether to join.

“Conservative in Ontario used the same scare tactics in the campaign that opponents of CPP expansion have been using. But Ontario voters didn’t buy it. They said loud and clear that retirement security is a priority. But voters in all provinces are telling us the same thing. The federal government must listen,” said Yussuff.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 111 district labour councils.

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“Time and again this government has promoted ideas that would make it more difficult for Canadians to achieve retirement security,” Georgetti says. “This latest announcement fits into that category.”

Georgetti was responding to an announcement by Kevin Sorenson, the minister of state for finance, that Ottawa will initiate discussions about what it calls “target-benefit” pension plans. These would apply Crown Corporations such as Canada Post and federally regulated private-sector companies, including transportation, banking, telecommunications and other sectors.

“The minister claims that he wants employers and workers to share the risks of pension plans but make no mistake about it,” says Georgetti. “The goal here is to allow employers more opportunities to dump defined benefit pension plans and  existing liabilities and shift the risk to workers.”

Georgetti says that many employers in both the public and private sectors have been ditching defined benefit pension plans and replacing them with defined contribution plans, where the payout in retirement is entirely dependent on the success of an individual’s pension investments.

“Defined contribution plans have been disastrous for workers, especially in the current environment of high fees, low economic growth and low interest rates,” Georgetti says. “There is a lot of unhappiness about this so now Ottawa is promising another fix, but this proposed shift from defined-benefit pension plans to target-benefit plans is a loss for workers.  All other things being equal, workers will stand a greater chance of seeing their pension benefits reduced.”

Minister Sorenson says that what he calls a third option would apply to workers in Crown corporations and federally-regulated private companies. But Georgetti says the idea will be used as a wedge to undercut pensions in the civil service and in the private sector.   

Georgetti adds, “Sixty per cent of Canadians have no work place pensions at all and the federal, provincial and territorial finance ministers have been talking for years about the need to improve the Canada Pension Plan to deal with this crisis. Every time the provinces came close to agreement on  how to improve the CPP, Ottawa threw sand in the gears to prevent it. Now they are doing it again.”

Georgetti says the CLC will continue to be vocal in protecting workers’ pension benefits. “We  will continue to focus on the fact that 12 million Canadian workers have no workplace pension plans. The real solution to that is a phased in doubling of CPP benefits.”

Former Bank of Canada governor David Dodge and an array of other experts have said that improving the CPP is by far the best way to provide income security in retirement.

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“The Finance Department prepared material that was published in a newspaper in Minister Sorenson’s name,” Georgetti says. “We have access to Information (ATIP) documents indicating that when journalists from other media outlets questioned Sorenson’s facts, the department scrambled to provide talking points that did not tell the whole story.”

Finance ministers met in Ottawa in December 2013 to discuss enhancements to the CPP/QPP. The Canadian Labour Congress has been advocating since 2009 for CPP improvements which would guarantee income security for Canadians when they retire. Prior to the December meeting, a number of provinces, including Prince Edward Island and Ontario, put forward a workable model providing for increases to future CPP benefits. Those enhanced benefits would be paid for by modest increases to the CPP premiums paid by workers and their employers. These premium increases were to be phased in over a number of years.

Georgetti says that on December 4 Sorensen published an article in the Financial Post which claimed that CPP premium increases would “kill” between 17,000 and 50,000 jobs. The logic was that employers, unhappy with the new premiums, would refuse to hire new workers and would lay off some existing workers. “These claims could only be made by manipulating the facts,” Georgetti says.

Georgetti adds, “The material prepared by the Finance Department and peddled by the minister made the assumption that the new CPP premiums would be applied all at once and that no prior notice would be given to employers. In fact, the plan proposed by Prince Edward Island called for a phase in period of several years for the new premiums. This makes all of the difference and the minister and his department knew this all along. Credible experts say that a modest, phased-in increase in CPP premiums would have a nearly negligible impact on employment. And, as even the Finance Department admits, an enhanced CPP would have a positive impact on the economy in the longer term.”

When journalists challenged Sorenson’s numbers, finance department officials prepared talking points for the minister to defend his position. “We have seen materials obtained through an Access to Information request,” Georgetti says. “The Finance Department was saying one thing behind closed doors and another in the information being provided to inquisitive journalists.”

The ATIP documents show the department admitting that [quote]: “in the long run, expanding the CPP would bring economic benefits. Higher savings will lead to higher income in the future and higher consumption possibilities for seniors.”

The Finance Department also acknowledged that any negative impacts from the  increase in CPP premium rates that occurred in the late 1990s were outweighed by the underlying strength of the economy. Georgetti says, “This conclusion was entirely contrary to the alarmist predictions being made by Minister Sorenson in December 2013.”

Georgetti adds, “The Finance Department was admitting internally that there was a case to be made for enhancing the CPP, but far as we can see from the Access to  information documents, those conclusions were stripped out of the material provided to reporters who had challenged Sorenson’s doom and gloom figures.”

Georgetti says that this is just one more case of the government misleading the public and the media. Canadians deserve better than this and they also deserve the retirement security which only an improved Canadian Pension Plan can provide. The federal government needs to take our retirement security problems seriously before they become worse.”

A copy of the ATIP materials discussed here is available at the following link: http://bit.ly/1ljNtUu

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

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Georgetti was commenting on a meeting of federal and provincial finance ministers in Ottawa and at Meech Lake on December 15-16. Following the meeting, federal Finance Minister Jim Flaherty poured cold water on the idea of enhancing the CPP/QPP at any time in the foreseeable future.

“The Conservatives should be taking leadership on a matter of urgency to Canadians but they are the obstacle,” Georgetti says, “Every time the provinces put forward proposals Minister Flaherty gives them a lump of coal and he has done it again today.”

Georgetti dismisses as “fear mongering” the comments from Minister Flaherty and some special interest groups that the economy is too fragile to accommodate even a modest increase in CPP contributions. “Many of these same people predicted disaster when then Finance Minister Paul Martin increased CPP contributions in the late 1990s to put the plan on a more secure footing. The Canadian economy actually improved and employment grew notwithstanding the dire predictions.”

Georgetti says he applauds the provinces, who are continuing to work for an improved CPP, but says they need help. “Fully 60% of Canadians have no workplace pension plan and the Conservatives do not seem to care. It is time that ordinary people step up and tell Mr. Flaherty and his friends that they will pay a political price for their actions.”

The labour movement has been advocating since 2009 for a modest, phased-in and achievable proposal to double future benefits under the CPP on a fully-funded basis.  According to the CLC proposal, the basic pension floor for retirees in the future would rise from the current level of $12,150 a year to a far more livable $24,300. “For about the price of one cup of coffee a day we could be on the way to providing real retirement security for Canadians,” Georgetti says.

Georgetti adds that the alternative to improving the CPP is for the Canadian government to use the Guaranteed Income Supplement (GIS) to continue subsidizing businesses that don’t offer pension plans to their employees. “If we do nothing to improve pensions now, the combined tab to taxpayers from Old Age Security (OAS) and GIS will grow from $43 billion today to $140 billion by 2040.”

The CLC has launched a nation-wide petition at www.pensionfairness.ca to gather signatures from across the country in December and January. The petition demands that Ottawa work with provincial and territorial governments to increase pension benefits without delay under the CPP/QPP.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils. Web site: www.canadianlabour.ca  Follow us on Twitter @CanadianLabour

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“Retirement security is one of Canadians’ biggest concerns and rightly so,” Georgetti says. “There’s no big secret why we should expand the CPP – it simply makes sense.” Georgetti’s comments come as Canada’s finance ministers plan to meet in Ottawa and at Meech Lake on December 15-16. CPP reform will be uppermost on their agenda.

The CLC has been advocating since 2009 for improvements to the CPP-QPP which  would guarantee income security for Canadians when they retire. Georgetti says, “Some vested interests in banks or financial institutions that make huge profits from RRSPs and PRPPs are saying it’s not the right time and that the economy is too fragile to allow for improving the CPP. They are dead wrong and our research shows that.”

CLC researchers have compared the financial situation today with that in 1995, just prior to an increase in CPP premiums, which placed the plan on a firm footing.   “We  have the numbers to prove that current economic conditions are not a barrier to CPP expansion,” Georgetti says. “In fact, expanding the CPP would be good for the economy.”

Georgetti says the need for pension reform is urgent. “Fully 12 million Canadians – two-thirds of all workers – have absolutely no workplace pension plan and that situation is getting worse, not better. Just one-third of all Canadians invest anything in Registered Retirement Savings Plans or RRSPs.”

He says that Canada faces stark choices. “Those without adequate pension retirement income will be dependent on the federal government’s Old Age Security and Guaranteed Income Supplement programs to get by. But by 2030 – unless we expand the CPP – the annual costs of the OAS and GIS are projected to triple to $108 billion. That’s an inter-generational tax transfer to young people – they’ll bear the brunt of our inaction through more support for poor seniors in the future, and a bleak outlook for their own retirement with inadequate pensions.”

Georgetti adds, “Many provinces across the political spectrum support expanding the CPP and now it’s time for the federal government to show real leadership. The time for talk has ended and the time for action to expand the Canada Pension Plan is now.”

Georgetti will also be available through December 16 to comment on the progress and outcome of the finance ministers’ meetings.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

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“The Fraser Institute claims to be independent and non-partisan,” says CLC President Ken Georgetti. “But the Institute is well known for taking millions of dollars in contributions from right wing American think tanks and multinational corporations then producing studies that conveniently push their agenda. Who paid for this one, big oil, big pharmaceutical companies, tobacco companies, or the business leaders in Canada who regularly donate to the Conservative Party?”

Georgetti says that in 2011 Michael Walker, senior fellow at the Fraser Institute, was paid $424,000 funded by tax deductible, charitable donations. “At the same time, the Institute says that we can’t afford to pay a pension of $18,000 a year to retired public servants.”

Georgetti adds, “The Fraser Institute attacks pensions to public sector workers but it has also been a cheerleader for the federal government’s tax breaks to corporations. These giveaways include a lifetime capital gains exemption for business owners to the tune of $800,000. This handed small businesses nearly $1 billion annually in federal tax relief.”

Ottawa has also slashed the corporate income tax rate from 21% to 15%. Georgetti says, “This puts an added $13 billion into the pockets of businesses who have for the large part parked it in their bank accounts.”

Georgetti adds, “The Fraser Institute should stop attacking the men and women who work hard to provide valuable public services to Canadians, and who contribute every pay cheque toward their pension plan so they can retire in dignity.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

Web site: www.canadianlabour.ca
Follow us on Twitter @CanadianLabour

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Ken Georgetti, the President of the Canadian Labour Congress says he was pleased to learn that Ontario Premier Kathleen Wynne is keeping CPP expansion on the agenda for the premiers to discuss. The leadership of provincial governments have been a key factor building majority support in favour of increasing the amount that Canadians save through the CPP to avoid a future retirement income crisis.

“While the federal government drags its feet, it falls on the provinces to lead the way to ensure that Canadians have enough  for a decent retirement after a lifetime of work.  The future cost of caring for those who don’t have a workplace pension to help them save for retirement – housing, health care, community and social services – will be our children’s to bear, if government fails to act now,” says Georgetti.

According to Georgetti, it’s time for the Premiers to make it crystal clear to the federal government that the formula required to expand the CPP already exists and it’s time to get on with the work to make it a reality.

“The time for excuses is over. We’ve got 40 years of experience with voluntary pooled pension schemes, whether you call them RRSPs or PRPPs.  The bottom line is they don’t get the job done.  They are an inadequate and expensive savings vehicle for the vast majority of Canadians, and the federal government knows it. They just need to stop listening to financial industry lobbyists and the selective arguments of some selfish business interests.” he said.

A recent Harvard University study echoed the Canadian government’s own findings earlier this year that showed improving taxpayer subsidies (deductions for PRPP or RRSP contributions and Tax Free Savings Accounts) only benefit people who are already actively saving for retirement, whereas automatic contributions (like CPP premiums) greatly increase the savings of passive savers – the large majority of people who need a retirement plan like the CPP.

Georgetti says “The choice for today’s political leaders is stark – you can help business save a little more today by dragging your feet on retirement income security or you can take steps to prevent a retirement income crisis that will result in a generation of impoverished seniors whose care will come at a very high social and economic cost to the Canadian public and business alike.”

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils. Web site: www.canadianlabour.ca Follow us on Twitter @CanadianLabour

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“Experts agree and all of the evidence shows that the CPP is by far the best way to guarantee financial security for people in retirement.” says CLC President Ken Georgetti. “The Fraser Institute, for its own ideological reasons, would rather promote RRSPs, which allow the financial services industry to charge some of the highest management fees in the world to Canadians trying to save for retirement.”

Georgetti was responding to the release by the Fraser Institute of a study called, “RRSPs and an Expanded Canada Pension Plan: A Preliminary Analysis.” The study attempts to show that an increase in CPP contribution rates between 1993 and 2003 caused a decline in contributions to RRSPs over that period. The Institute believes this to be a bad thing.

“The Fraser Institute’s analysis is weak,” says Georgetti, “but the more important point is that RRSPs have failed Canadians. Compared to the CPP, RRSP mutual funds are inefficient and expensive, and they are a tax subsidy disproportionately paid to high-earners who can afford to buy them. RRSP funds are commonly withdrawn before retirement age, something that can’t happen with the CPP, and unlike RRSPs, your CPP benefit doesn’t depend on whether the stock market had a bad day or not.”

Georgetti points to well-known experts who agree that RRSPs have failed and that the CPP is worth expanding. “Don Drummond, former chief economist for the Toronto Dominion Bank said in 2009 that although RRSPs have been promoted for 50 years, they just haven’t worked out. And David Dodge, a former governor of the Bank of Canada, said in 2012 that expanding the CPP would help solve many of the problems plaguing Canada’s retirement system, especially given the growing crisis in employer-sponsored pension plans.”

The CLC is advocating a phased in doubling of CPP benefits to be financed by a modest increased in contributions from workers and their employers. “This is clearly the best way forward,” says Georgetti, “but Finance Minister Jim Flaherty seems to be listening to his friends in interest groups such as the Fraser Institute and the Canadian Federation of Independent Business, who are opposed to CPP expansion. We have to convince him otherwise.”

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada’s national and international unions along with the provincial and territorial federations of labour and 130 district labour councils. Web site: www.canadianlabour.ca  Follow us on Twitter @CanadianLabour

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