Union calls for expansion of CPP
The Alberta Federation of Labour said in a recently released report that the government needed to take into account the growing number of retiree's needs and that they needed to extend the CPP in order to help those who do not have enough to retire. Gil McGowan, the group's president said that the government needed to help the business sector.
"The government has taken some steps in the right direction to improve health and safety at work, but Alberta can - and must - do better," says Gil McGowan, president of the AFL. "As the economy picks up, especially in the oil patch and construction sectors, the government needs to take immediate action to improve health and safety. If simple changes aren't made today, Alberta will return to the highest number of workplace fatalities in Canada. Only last month, three workers died in workplace accidents in three days."
Elected in 2005, McGowan has been tasked with representing workers from all different sectors of the Canadian workforce. Small and large businesses rely on unions to give employees a voice.
NEBS, Fri Nov 19 2010
Workshop calls temporary foreign worker program a ‘disaster’
A human rights expert is the keynote speaker at a workshop today, holding up Alberta's temporary foreign worker program as a failure.
Karl Flecker, director of anti-racism and human rights for the Canadian Labour Congress, will be speaking at event - The TFW Disaster: How the Temporary Foreign Worker Program is impacting Alberta's reputation - being staged by the Alberta Federation of Labour in Edmonton.
A number of temporary foreign workers are employed in the oilsands as well as in the local service and hospitality industry in Wood Buffalo.
"Canada's temporary foreign worker program is often touted as being a model program by Canadian government officials," said Flecker.
Truth is, he claims, the TFW program leads to exploitation of migrant workers by unscrupulous labour brokers and employers, countless experiences of workplace abuse, poor housing conditions and a systemic denial of benefits workers are entitled to receive but never see.
The AFL is hosting the workshop for two reasons, explained Gil McGowan, AFL president, this morning.
The time has come for labour and community groups to get together in order to craft a stronger message and start building a campaign in support of TFW reform and second, because the provincial government is in the process of re-evaluating the program. The AFL wants to take advantage of that re-evaluation "to put pressure on the provincial government to play a more positive role in fixing what we think is a broken system."
Teresa Woo-Paw, parliamentary secretary to Thomas Lukaszuk, Alberta's labour minister, who is heading the provincial review of the TFW program, has agreed to include whatever comes out of today's workshop in her review, he pointed out. Woo-Paw has been hosting meetings in different communities around the province, meeting with employers and community groups.
Though cold comfort, McGowan agreed it is something as the TFW program is a federal program so there is only so much the province can do.
"Just the fact that the provincial government is taking a second look at the temporary foreign worker program is encouraging for us because it demonstrates that we're not the only ones who are concerned that the program isn't working in the broader interest of Canadians."
About 65 people were attending the event with one-third from labour and the remainder representing immigrant settlement organizations, primarily non-profit groups such as the YMCA that work with immigrants and temporary foreign workers.
"They're the people on the front lines dealing with temporary foreign workers who have been cheated, misused or abused," said McGowan.
The AFL says the TFW program isn't working for employees or employers. It should be scrapped and replaced by a reformed immigration system that opens more paths to permanent residency and citizenship. The AFL estimates there are more than 65,000 documented foreign workers in the provinces, and tens of thousands more unregistered workers, creating a disposable workforce open to abuse.
Flecker said Canada's TFW program is not up for the job of ensuring basic human rights are upheld. "The program quite simply fails to ensure adequate workplace protections for those who toil in every single sector of the Canadian economy are in place," he said.
Fort McMurray Today, Thurs Nov 18 2010
Byline: Carol Christian
Alberta labour group launches campaign for CPP reform
A campaign for "real" pension reform has been launched in Alberta by the Alberta Federation of Labour (AFL) and the Canadian Labour Congress, hoping to persuade the provincial government to change its mind and join the growing consensus around expanding the Canada Pension Plan (CPP).
"A crisis in retirement income is looming in Canada and it will not spare Albertans, despite claims made by Finance Minister Ted Morton," said Gil McGowan, president of the AFL.
Prime Minister Stephen Harper and Finance Minister Jim Flaherty support expanding CPP, along with nine provinces, seniors groups, student groups, economists and labour groups, said the AFL, and there's hope a ground-breaking agreement can be reached when Canada's finance ministers gather in Kananaskis, Alb., next month.
"Alberta, however, is acting as a spoiler and standing in the way of real reform," said McGowan. "The only other dissenting voices are coming from banks and insurance companies who want to keep charging outrageous fees for their under-performing retirement planning services."
Morton is out of step with Albertans when he claims they don't want or need CPP expansion and any reform should be left to private industry, said the AFL. More than three-quarter (78 per cent) of Albertans don't believe they have made adequate arrangements for their retirement and 67 per cent don't believe banks and insurance companies should be chosen over CPP to run an expanded pension system, found a recent AFL poll. In addition, 71 per cent said Morton and the Alberta government should allow changes to CPP.
The AFL also released a report by economist Hugh MacKenzie that shows Albertans need pension reform more than other Canadians. Titled It IS Broke - So Fix It!, the report finds Albertans are less likely to be covered by an employer pension plan and those with pension coverage are likely to have inferior coverage compared to other Canadians. Only 11 per cent have a defined benefit plan and 38 per cent of Albertans contributed to an registered retirement savings plan in 2008, with a median contribution of $3,200 per year.
As part of the campaign, the AFL also launched a website to focus attention on the issue.
Canadian HR Reporter, Wed Nov 17 2010
Alberta needs pension reform: AFL Report says more than half of senior families have no pension
EDMONTON - The Alberta Federation of Labour says the provincial government needs to get on board with Canadian Pension Plan reform or get out of the way.
In a report released Tuesday, titled "It is broke ... so fix it!" the AFL warns that a significant number of Albertans are facing a lower standard of living once they retire.
According to the report, while the average Albertan's pension is $60,000, more than half of senior families have no pension. Among those without pensions, 38 per cent have RRSPs or Registered Retirement Investment Funds.
"Albertans simply don't have enough money to provide what they need when they retire, and the problem is getting worse all the time," said Gil McGowan. "Despite our wealth as a province, we're not being spared this problem."
As the province plans for a surge in Alberta's senior population as the baby boomers reach 65, McGowan said the government needs to support expanding the CPP.
In a meeting of Canada's federal and provincial finance ministers in June, the consensus was to work on a plan that would see a modest increase in the Canadian Pension Plan benefit. Since then, Ted Morton, Alberta's Minister of Finance and Enterprise, has been the only minister to publicly oppose the increase. Morton said the current pension system is very good and that reforms would do more harm than good.
"The problem is very specific; it's not the higher income brackets, it's not in the low income brackets, there's a certain portion of middle-income Canadians that haven't saved enough for retirement," he said. "That's where the remedy has to focus."
Morton said increased CPP contributions are an additional, unneeded payroll tax that would hurt economic recovery efforts.
"We still have an unemployment problem in Canada," he said. "Putting an extra payroll tax on employers is not the thing to do when you're trying to create more jobs."
NDP MLA Rachel Notley said the reforms were long overdue and said the ministry was taking a backward approach.
"If you compare us to many much more progressive countries, particularly in Europe, our low level of retirement planning is quite shameful," Notley said.
Edmonton Journal, Wed Nov 17 2010
Byline: Conal Pierse
AFL wants CPP expansion
The Alberta Federation of Labour (AFL) is calling the Alberta government out on its stance against an enhanced Canada Pension Plan (CPP).
In a report released on November 16 by the AFL, It IS broke...so fix it!, the labour organization makes it clear that it believes the provincial government is not acting in the best interest of Albertans.
Alberta's Minister of Finance and Enterprise, Ted Morton, has said that raising CPP premiums will cause job losses in the province. However, the AFL claims there is no evidence to support that view.
"Experience with policy measures that increase payroll costs, including both payroll taxes and minimum wages, shows that the effects, if any, are so small that they are swamped by the normal ebbs and flows of economic activity," the AFL report says. "Extensive academic literature finds no basis for claims for long-term negative employment effects from payroll taxes."
The report goes on the say that pension coverage is weaker in Alberta than in other provinces and that Albertans are in fact, not better off in the current system than other Canadians, as their government suggests.
"So while the government of Alberta's opposition to an expansion of the Canada Pension Plan may serve the interests of the Canadian retail mutual fund industry and support the living standards of its high-flying leaders," the report boldly states. "It does not serve the interests of Albertans."
Canada Benefits, Mon Nov 16 2010
Byline: April Scott-Clarke
2010 Nov Speaking Notes - Launch of REAL Pension Reform Campaign
Launch of AFL Real Pension Reform Campaign
November 16, 2010
Matrix Hotel, Edmonton, Alberta
Good morning and welcome.
We've invited you here today because a crisis is looming: a crisis in retirement income.
It's a crisis which, in many ways, has already begun ... but which will only worsen as more and more Canadians reach retirement age without adequate savings.
It's a crisis which will rob millions of Canadians of security and dignity in their retirement years.
It's a crisis that will hurt the economy as the spending power of the seniors shrinks.
And it's a crisis from which Albertans will not be spared.
The good news - and there is good news - is that nine provinces and the federal government recognize that a serious problem exists and are prepared to do something about it.
The bad news is that our province, the province of Alberta, is acting as a spoiler and standing in the way of a real national solution.
Other provinces and the federal government agree that Canadians aren't saving enough for retirement.
They agree that fewer and fewer people are covered by workplace pensions.
They agree that the private investment industry has failed miserably to deliver on all the promises they've made over the years about private retirement savings and the dream of Freedom 55.
Other provinces and the federal government also agree on what action needs to be taken.
They agree that a big part of the solution lies in expansion of that one part of pension picture that remains solid: the Canada Pension Plan.
Unlike many private sector workplace pensions, CPP is fully funded and actuarially sound for at least the next 75 years.
It's also portable from job to job and from province to province.
And unlike mutual funds, CPP charges rock-bottom management fees and provides a guaranteed benefit, as opposed to the uncertainty of most mutual funds which are tied to fluctuations in the stock market.
The only real problem with the CPP is that it's too small. With an average annual payout of only $6,000 and a maximum annual payout of only $11,000, CPP is one of the least generous national pension plans in the developed world.
Pension experts say that people need income equivalent to about 70 percent of their pre-retirement income to maintain their standard of living in retirement. But CPP only replaces about 25 percent for people earning $47,000.
That's where we in the labour movement think pension reform needs to start.
We're calling for a gradual doubling of CPP benefits, so that CPP can replace 50 percent of pre-retirement income for people earning $47,000 a year.
It's a modest, incremental solution which has been endorsed by seniors groups, by student groups, by prominent economists and academics and, as I've said, by the Finance Ministers and Premiers from every province except our own.
Even the federal Conservatives support CPP expansion.
Federal Finance Minster Jim Flaherty is behind the idea. Prime Minister Stephen Harper has given it his stamp of approval.
Even Diane Ablonczy, one of the last remaining original Reform Party MPs and currently Secretary of State for Seniors, is giving CPP expansion her support.
Just two weeks ago, I had a long talk with Minister Ablonczy in her office on Parliament Hill.
She admitted that, for ideological reasons, she hesitated to support CPP expansion.
But as the federal minister responsible for seniors, she said she's met too many seniors who simply can't make ends meet.
She's seen too many seniors who worked hard all their lives, raised families and contributed to their communities ... but who didn't have workplace pensions and just couldn't find any money at the end of the month to save for their retirement.
That's why she says we need across-the-board, mandatory solutions like an expanded CPP.
Unions. Seniors. Students. Economists. Provincial leaders. Federal leaders.
It's all part of what the Globe and Mail calls an "emerging national consensus" to address the looming crisis in retirement income by expanding CPP.
It's a consensus that could lead to a ground-breaking agreement when finance minister gather in Kananaskis a month from now. Alberta could be the site of an historic policy breakthrough ... or the meeting in Kananaskis could be remembered only as a missed opportunity.
At the moment, we remain optimistic ... but we're also more than a little frustrated.
The only dissenting voices to be heard on the issue of CPP expansion are coming from banks and insurance companies - who want to keep charging Canadians outrageous fees for the under-performing retirement planning services provide - and from the Alberta government, which has staked out an ideological position that is at odds with the facts and which does not reflect the opinion of Albertans or uphold their best interests.
Speaking on behalf of his government, Alberta Finance Minister Ted Morton has said that Albertans don't need an expanded CPP. He has said they don't want an expanded CPP. He has also said that real solutions lie elsewhere.
In particular, in speeches, in guest columns, and most recently in a new document entitled "Alberta Aging Population Policy Framework" (which was released just last week) Morton outlines a vision for seniors policy that most Albertans have not heard about ... but which almost nobody would support if they had.
For example, Morton says the onus should be on individual Albertans to save for their own retirements - even though the evidence clearly shows that most Albertans don't have enough money left over at the end of the month to set aside for an adequate retirement.
Morton says that if they don't have adequate income, seniors should be encouraged to sell of their assets, most notably their homes.
Morton also says the looming crisis in retirement income should be seen as an opportunity for businesses worried about labour shortages because it will force more and more people to keep working until their 70 or 75 years old.
In fact, one of the only major policy promises in the government's new Aging Population Policy Framework is to provide new career counselling services to seniors ... presumably so they can spent their golden years working as Wal-Mart greeters instead of enjoying a dignified retirement.But that's not all. If any additional pension programs are needed, Morton says they should be voluntary - meaning employers should be able to opt out if they chose - and they should be managed by the private investment industry as opposed to the lower-cost, more efficient and more accountable people who run the CPP.
That's the Alberta government's vision for retirement policy. Sell your house. Work until your 75. And keep paying exorbitant fees to banks and insurance companies for under-performing mutual funds.
That's why we're launching our campaign today. And that's why our slogan is "Hey Ted, Albertans want REAL pension reform."
Behind me, you see our new campaign website at www.realpensionreform.org.
On the site you'll find all sorts of information, documents and links dealing with issues of retirement insecurity and pension reform.
We're also releasing the results of a province-wide poll that we conducted last month.
Like previous polls conducted by other labour organizations and media outlets, our poll shows that an overwhelming majority of Alberta support expansion of CPP as a solution to the looming crisis in retirement income.
78 percent of those surveyed don't buy the argument advanced by Ted Morton that Albertans have already made adequate arrangements for their retirement.
67 percent don't buy the argument that banks and insurance companies should be chosen over the CPP to run an expanded pension system.
And 71 percent say Ted Morton and the Alberta government should "get out of the way and allow changes to CPP that will put more money in the pockets of all Canadians when they retire."
We're also releasing a report outlining the real situation in Alberta when it comes to retirement income.
The report was prepared for us by economist and pension expert Hugh MacKenzie - and is appropriately titled "It IS Broke - So Fix It!"
So how bad is the situation in Alberta? How great is the need for reform?
Well, our report shows that Alberta has the lowest proportion of workers covered by workplace pensions in the country - and that number is falling.
Our report shows that only 38 percent of Albertans contributed to an RRSP in 2008 - and the median contribution was only $3,200 a year.
Our report shows that 60 percent of Alberta's RRSP contributions are made by people earning more than $80,000 a year, meaning that middle and low-income Albertans are being left out and left behind.
Our report shows that in 2007 half of Alberta seniors had no investment income at all and that a third of them survive on less than $16,000 a year.
And our report shows that management fees charged by mutual fund companies are eating up between 40 and 60 percent of the investment gains earned by individual Albertans on their retirement savings.
That's the real face of Alberta's retirement income system. It's a system that's broken. It's a system that's exposing a growing number of Albertans to insecurity. And it's a system that will only get worse if major fixes are not implemented soon.
So the goal of our campaign is to send a message to two groups: the first being finance ministers from other provinces and the second being Members of the Legislative Assembly here in Alberta.
For finance ministers, our message is simple: Ted Morton doesn't speak for all Albertans.
If he changes his mind and supports the consensus in favour of CPP expansion great. But if he doesn't, if he sticks to his guns about doing nothing in the face of the growing pension crisis...well, then we want to make it clear that he's out of step with the majority of Albertans.
Our message for Alberta MLAs, and especially for members of the government caucus, is also clear.
We want to send them the message that CPP expansion is needed and that it makes sense.
We want them to understand that an expanded CPP would be good for individual Albertans because it will give them a low-cost way to generate an increased stream of guaranteed income in retirement.
We want them to understand that an expanded CPP would be good for employers, especially small employers, because it will allow them to provide increased retirement benefits for their employees without exposing them to the risks and liabilities associated with running their own pension plans.
We want them to understand that an expanded CPP will be good for taxpayers because it will mean that fewer people will have to rely on tax funded supplements like GIS.
Finally, we want them to understand that an expanded CPP would be good for our broader economy and society because it would give seniors more money to spend in their communities and it would allow them to live with security and dignity.
In the end, despite the spin coming from people like Finance Minister Morton, tens of thousands of Albertans are facing a bleak retirement future.
But it doesn't have to be that way. We know what needs to be done. The rest of Canada is in the process of mustering the political will to solve the retirement income crisis before it takes hold.
What's required now is for Albertans to speak out and to demand that their provincial government either get on board with the move to expand CPP or get out of the way.
Thank you all for being here this morning.
Let's hope that when Canada's finance ministers gather in Kananaskis this December Alberta will join them in delivering the Christmas present that Canadians really need - the gift of retirement income security.
Gil McGowan, President
Hey Ted, Albertans want REAL pension reform: Labour groups urge Alberta Tories to stop standing in the way of CPP expansion
Edmonton - A campaign for REAL pension reform was launched in Alberta today to persuade the provincial government to change its mind and join the growing consensus around expanding the Canada Pension Plan (CPP).
"A crisis in retirement income is looming in Canada and it will not spare Albertans, despite claims made by Finance Minister Ted Morton," says Gil McGowan, president of the Alberta Federation of Labour, which launched the campaign with the Canadian Labour Congress (CLC).
Federal Conservatives including Prime Minister Stephen Harper and Finance Minister Jim Flaherty support expanding CPP. They are joined by nine provinces, seniors groups, student groups, economists and labour groups in the consensus forming around CPP expansion. With such widespread support, there's hope a ground-breaking agreement can be reached when Canada's finance ministers gather in Kananaskis next month.
"Alberta, however, is acting as a spoiler and standing in the way of real reform," says McGowan. "The only other dissenting voices are coming from banks and insurance companies who want to keep charging outrageous fees for their under-performing retirement planning services."
A poll released today (click here for poll results) by the AFL shows that Morton is out of step with Albertans when he claims they don't want or need CPP expansion - and that any reform should be left to private industry:
- 78 per cent don't buy his claim that Albertans have already made adequate arrangements for their retirement;
- 67 per cent don't buy the argument that banks and insurance companies should be chosen over CPP to run an expanded pension system; and
- 71 per cent say Morton and the Alberta government should get out of the way and allow changes to CPP.
The AFL also released a report by economist Hugh MacKenzie that shows Albertans need pension reform more than other Canadians. Titled It IS Broke - So Fix It!, the report finds that:
- Albertans are less likely to be covered by an employer pension plan;
- Albertans with pension coverage are likely to have inferior coverage compared to other Canadians, with only 11 per cent having a defined-benefit plan; and
- Only 38 per cent of Albertans contributed to an RRSP in 2008, and the median contribution was only $3,200 per year.
As part of the campaign, the AFL also launched a website to focus attention on the issue. On the site can be found information, documents and links dealing with issues of retirement insecurity and pension reform.
- 30 -
Media Contact:
Gil McGowan, President, Alberta Federation of Labour @ 780-218-9888 (cell)
It IS Broke - So Fix it!
A report by economist Hugh MacKenzie that shows Albertans need pension reform more than other Canadians.
AFL & CLC launch campaign aimed at bolstering the CPP
In June, Alberta Finance Minister Ted Morton said the province will not support a proposed expansion of the Canada Pension Plan.
The Alberta Federation of Labour is launching a campaign with the Canadian Labour Congress that it hopes will change that position. AFL President Gil McGowan says Canadians face a looming retirement income crisis and expanding the Canada Pension Plan is the best way to deal with it.
The labour groups plan to lobby members of the legislature, set up a website and release a poll that suggests that most Albertans favour expanding the CPP.
McGowan says they hope Alberta will give up its opposition to improving the pension system before federal and provincial finance minister meet next month in Kananaskis.
iNew 880AM, Mon Nov 15 2010
November 2010: Better health and safety rules; pension reform; Parkland fall conference; Lakoff lecture highlights; stop Calgary Public Library cuts
- The AFL has released a 10-point plan on workplace health and safety (click here for the plan), calling for immediate action from the Alberta Minister of Employment and Immigration (click here for press release). "If simple and common-sense changes aren't made today, Alberta will return to the highest number of workplace fatalities in Canada," says AFL president Gil McGowan. The AFL delivered more than 2,500 signed postcards to the government calling for improved health and safety rules. For more information ...
- Canada is facing a pensions crisis and the situation in Alberta is worst than most of the country, with too many people facing a retirement of poverty and hardship after a lifetime of hard work. There is growing consensus about reforming the Canada Pension Plan, but the Alberta government, led by Finance Minister Ted Morton, is resisting. Join top Canadian pension experts Jon Kesselman, Canada Research Chair in Public Policy at Simon Fraser University, and Bernard Dussault, former chief actuary of the Canada Pension Plan, at an AFL summit to explore how we can all retire with dignity. For more details ...
- Join the Parkland Institute for its 14th annual fall conference, which features a lineup of speakers headed by Canada's most famous author, Margaret Atwood. The vision of Canada is changing, thanks to the efforts of the conservative and corporate elites. Military aggression has replaced peacekeeping. Global competition is in. The conference looks at the hopeful politics of retrieving Canadians' popular view of a country where social and environmental justice prevail. For full conference details ...
Get the message!
- Linguistics professor George Lakoff, former communications advisor to Barack Obama during his presidential campaign, gave a lecture to the AFL and guests on how to get the progressive message out. How you frame the debate determines how successful you will be. To hear highlights of his lecture ... To hear the lecture in full, contact us at [email protected].
Urgent Action
Join the campaign to stop library cuts
- Calgary Public Library is facing budget cuts that would reduce opening hours and mean job losses. A letter-writing campaign launched by library workers' union CUPE 1169 has already had an impact and the size of the looming cut has been reduced. Let's build on this success by stepping up the campaign. To join the campaign ...
Events
November 5-7, 2010 - AB New Democratic Convention, Red Deer
November 13, 2010 - Notre Dame Des Bananes Fall Concert, Bonnie Doon Hall,
November 16, 2010 - AFL Lobby Day, Edmonton
November 18, 2010 - AFL Workshop - How the Temporary Worker Program is Impacting Alberta's Reputation
November 19-21, 2010 - Parkland Fall Conference, Edmonton
November 27, 2010 - AFL Pension Summit, Edmonton
December 5, 2010 - AFL Women's Committee Commemorative Brunch, Edmonton
December 10, 2010 - Deadline for registrations to AFL Winter School (brochure/registration form)
Did you know ...
- In 1991, 15 per cent of the Alberta workforce (341,000 workers) was employed in the top four most dangerous occupations. In 2009, 22 per cent of Albertans (620,000 workers) were employed in the most dangerous occupations.
- Proportionately, Alberta has four times more people in resource-extraction industries - one of Canada's most dangerous industries - than the Canadian average.
- Workers in Alberta are more likely to die on the job than workers in other provinces. In 2008, there were 5.9 deaths per 100,000 workers in Alberta compared to the national average of 4.2 deaths per 100,000 workers.
For more information, read Danger: Workers at Risk and new OH & S release