Government Strips Unions of Decision Making Power at the Local Authorities Pension Board


Recent changes at the Local Authorities Pension Plan have put at risk the pension benefits of 125,000 Alberta municipal, health care and education workers - including rights to early retirement, cost of living allowances and workers' ability to retire when their age and years of service add up to 85.

On November 15, 2007 the provincial Government arbitrarily changed the decision making rules at the Board of the Local Authorities Pension Plan (LAPP).

The new rules break a long-standing agreement which required union approval for all significant changes to the policies or governance of the Plan - opening the door for decisions which are against the interests of working people.

The old rules, established after unions agreed to help bail out the plan's unfunded liability in the early 1990's, required a two-thirds majority and a quorum of eight members of the board, which had to include four employer representatives and four employee representatives. Now only a simple majority is required and there need not be a single labour representative present.

Ironically, the new rules were passed using the requirements of the new rules rather than those of the existing rules.

The Labour Coalition on Pensions has purchased full-page advertisements which will appear January 22nd in Alberta daily newspapers. These ads call on members and pensioners to telephone their MLAs and Premier Ed Stelmach to overturn the changes. The coalition has registered a website - - where detailed information on the situation is available.

The Coalition also commenced legal action to overturn the changes in governance rules for the LAPP Board on December 19, 2007.

The coalition is made up of the Alberta Federation of Labour, the Alberta Colleges and Institutes Faculty Association, the Alberta Union of Provincial Employees, the Amalgamated Transit Union, the Canadian Union of Public Employees, Health Sciences Association of Alberta and United Nurses of Alberta. It represents approximately 125,000 members of the $15-billion LAPP.

AFL's Position

With a spring election imminent, now is the time to put pressure on the government to reverse this blatantly anti- worker anti-labour decision before any real damage is done to pensions. If union activists can put just a little extra pressure on Ed Stelmach and the government over the next few weeks, we may be able to force the government to act.

We are asking each Local to get its core of union activists to phone Premier Ed Stelmach and their own MLA (Alberta MLAs) over the next few weeks. (To find out who your MLA is, go to Tell them to restore the requirement for labour approval for decisions at the LAPP Board.

Please let the Federation know what the response was like if you phone the Premier and your MLA.

Check out website at for more information about the campaign, and for MLA contact information.

Be the first to comment

Please check your e-mail for a link to activate your account.