FrontIssue One 2010 The MagazineLines for Manitoba Nurses by the Manitoba Nurses’ Union PLAN FOR REVERSING THE PENSION PLUNGE Increase in contributions needed to offset effects of the global economic downturn Overtime–Over50%ofManitobanursesworkunpaidovertime Nursestakethe“bloodfight”online–www.SafeBlood.ca MNUcontributes$5000tohelpinthereliefeffortinHaiti Front Lines is published by the Manitoba Nurses’ Union (MNU). Founded in 1975, MNU continues to be an active member- FrontIssue One 2010 The MagazineLines for Manitoba Nurses by the Manitoba Nurses’ Union driven organization dedicated to meeting the needs of its members. Approximately 11,000 nurses province-wide belong to MNU. That’s 97% of unionized nurses In This Issue in Manitoba. 3 Message from the President “ToCareforNurses 4 4 Cover Feature: istoCareforPatients” Reversing the Pension Plunge Increase in contributions needed to offset Joyce Gleason effects of the global economic downturn 6 Overtime: Proceed with Caution Editor Exploring the effects of working excessive Samantha Charran hours Contributors 8 Nurses Take Blood Fight Online Glenda Doerksen CFNU launches Safe Blood website and calls Wes Payne on members across Canada to act now Bob Romphf 9 Labour Relations Reports 6 Duty to Accommodate – Exploring the role of the employee, the employer and the Contact Us: union when a duty to accommodate arises MNU Communications Department 301 - 275 Broadway 8 10 MNU Pledges Funds for Haiti Winnipeg, Manitoba R3C 4M6 MNU passes motion to contribute $5000 (Tel.) 204.942.1320 to help in the relief effort in Haiti (Fax) 204.942.0958 10 11 Touring Continues Website: www.manitobanurses.ca • Taché Centre Email: [email protected] • St. Amant Centre MNU is affiliated with the Canadian 12 Across Canada Federation of Nurses’ Unions and National Information and Issues the Canadian Labour Congress. 14 Surf to Savings Online MNU is a member of the Canadian 11 The MNU Member Discount program is Association of Labour Media. back with more offers and available online MNU adheres to all Privacy Legislation requirements. 15 MNU News Briefs • Nelson House employer not bargaining Publication Agreement #40021526 • St. Boniface nurses back committee • Bargaining moves along RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: • Board positions filled Manitoba Nurses‘ Union 16 MNU Board of Directors 301-275 Broadway and Committee Executive Winnipeg, MB R3C 4M6 Email: [email protected] 12 NOTE: 14 In our last issue, Margaret Penner was profiled in “A Commitment to Caring”. Please note that Margaret Penner is a Registered Psychiatric Nurse. Message from the President Bargaining Continues. The time between the writing of this page, the printing and the delivery of Front Lines can be several weeks so current updates are virtually impossible. Please check our website for the latest information. Direct mail will also be used for updates. The constant in this round of negotiations is that while we may be bargaining in a recession we are determined to make sure that nurses’ wages and pension are protected. That is no small challenge. We are not prepared to allow Manitoba nurses to end up in a free fall to the bottom of the pack in terms of wages across Canada. Sandi Mowat,MNUPresident Pension Protection Protecting our pension is the top priority for MNU members. As members of the Health Employees Pension Plan (HEPP) along with 37,000 other healthcare providers we are committed to working with other unions in the Manitoba Council of Health Care Unions (MCHCU) to ensure that pension benefits are maintained. The global financial crisis of 2008-2009 has affected all pension plans. HEPP is no different. Latest valuation of the plan shows a shortfall of $388 million. To maintain the plan, the contributions of both the employers and participating healthcare providers must be increased (current estimate is approximately 1% to 1.5% each.) MCHCU reps have agreed that their members will match an employer contribution increase to save the plan. FOR MNU MEMBERS, A REDUCTION IN BENEFITS SUCH AS THE CHANGES TO THE MAGIC 80 RULE OR EARLY RETIREMENT TOP UP PAYMENTS IN NOT AN OPTION. WE ARE COMMITTED TO A SOLUTION THAT MAINTAINS BENEFITS AT EXISTING LEVELS. COLA Unlike many other pension plans, HEPP does not have a Cost of Living Allowance (COLA) formula for retirees. Setting up a COLA fund will need both the employers and employees to make additional contributions of 0.5% to 1% each. It will take a few years to build up a COLA fund, but the fact is that if we don’t take this initiative now our members will be trying to exist on pensions with a purchasing power of half as much in their final years. A pension of $1500 a month will be worth $760 in 30 years when inflation is factored in. We can’t leave this issue for another day. Haiti Relief We have joined other member organizations of the Canadian Federations of Nurses Unions (CFNU) in supporting the people of Haiti with our donation of $5,000. So far the CFNU has donated close to $72,000 to Doctors without Borders to help the relief effort. Thanks to the worksites and individual members who contributed. Anyone wishing to make a donation can forward it to the MNU Provincial Office. MNU Front Lines Magazine Issue One 2010 3 PLAN FOR REVERSING THE PENSION PLUNGE Bob Romphf, Labour Relations Officer – Benefits The effectS of the Global financial meltDOWN of 2008-09, alonG With A combination of loW intereST rateS anD AGinG DemoGraphicS haVE put unpreceDenteD preSSure on our penSion plan, reSultinG in A Deficit of approXimatelY $388 million. IT maKES SenSE then WHY Manitoba NurSES’ Union (MNU) memberS, alonG With other healthcare union memberS, haVE prioritiZED penSionS anD COST of LIVinG ADJUStment (COLA) AS their main concernS, promptinG the neeD for A DefinitiVE plan of action from union repreSentatiVES. PENSION COLA UPDATE MNU, in close conjunction with the Manitoba Council of Health Care Unions (MCHCU), is Currently, inflation is running very working on a comprehensive strategy and communication plan to address healthcare workers’ low compared to historical levels. retirement, pensions and inflation protection (COLA) for the future. Nevertheless, COLA still remains a This coordinated, joint, provincial strategy will enable our Provincial Collective Bargaining Committee (PCBC) to protect and preserve our members’ pensions, along with attaining a COLA fund. key issue for not only nurses, but all healthcare workers. Earlier this year, the Healthcare Employees’ Pension Plan (HEPP) board reported in Plan Talk, the organization’s newsletter, that the HEPP plan has received its Actuarial Valuation, an assessment of the assets, liabilities and funding status of the pension plan. This was followed by corresponding COLA is the future inflation protection recommendations outlining the need for a contribution increase to preserve member benefits. (quasi-retiree wage increase) in a The HEPP board, in conjunction with the plan’s actuary from Towers Perrin, has spent a number retirees attempt to preserve their of weeks analyzing the 2008 results. The group also spent significant time analyzing the reasonable future expectation of plan investment returns. purchasing power. Based on feedback from members it is our union’s intent It was concluded, that despite the substantial rebounds in the investment markets in late 2009, the damage caused by the global economic turmoil was too great. to address this in bargaining in The only solution for offsetting the effects of the global financial meltdown is to increase contributions. conjunction with other healthcare In order to provide Going Concern deficit recovery, as set out by the Pension Benefits Act of unions over the coming months. Manitoba, this will mean a 1.1% increase in contribution for both employees and employers. The HEPP Board has indicated they need confirmation of this by June 2010 to implement the The global market meltdown has deficit recovery program by January 1, 2011. now forced us to find both solutions The MNU, one of the Founding Settlers of HEPP and HEPP board, has a strong commitment to on the preservation of the pension preserving the pension benefits of its plan members. benefits along with also finding a However, the board only controls the benefit levels, leaving the decision to increase contribution rates in the hands of the unions and employers. long term COLA solution. The HEPP Board has embarked on a process of presenting a detailed analysis and deficit recovery plan to the Union and Employer Settlers. The Board is also keeping the government stakeholders The Manitoba Council of Health Care informed as they provide funding to the employers, and facilitating a Tri-Partite committee to Unions raised these questions before assist settlers and stakeholders in resolving some of these issues to keep the plan viable and the NDP leadership candidates prior strong for the future. to the NDP convention in the fall of At present, current contribution rates are sufficient to cover current accruing existing benefit levels, but not enough to cover the deficits caused by the global downturn. If the situation 2009. All candidates were supportive continues to improve in the interim, the parties will take this into consideration but no one can of working to preserve healthcare accurately predict the future of global investments. workers’ pensions. The MCHCU MNU members put great value on pension benefits, especially since many nurses have worked has developed a joint strategy on for 20 or more years, enduring long hours, short staffing, multiple injuries and stresses. MNU members have more than earned the right to a decent pension upon retirement. pensions and COLA which will be instituted as all unions proceed into bargaining over 2010. Inflation 2010 2020 2030 2040 over 30 years $ $ $ $ 1000 820 630 380 Members will be kept closely informed of our progress on this 1000 900 issue through our PCBC and Board.