The biggest public sector union in Prince Edward Island, the Union of Public Sector Employees (UPSE), has filed a grievance in response to a controversial change in the province’s new pension legislation. The change gives the province immunity from legal action.
In an effort to reduce pension liabilities, the Government of P.E.I. and civil servants recently reached a new collective agreement that calls for things such as eliminating guaranteed inflation indexation and using a career average when calculating pension benefits.
The new legislation also shields the government from liability for any pension changes, including changes relating to benefits, contributions and funding. This essentially means that anyone disappointed with the pension changes will not be able to sue the government.
UPSE president Debbie Bovyer says this protection from legal action is undemocratic. She says the union was never consulted about it.
The union’s grievance asks the province to come up with a revised deal that would work for both sides. UPSE is waiting to see if legal action is possible.
P.E.I.’s finance minister, Wes Sheridan, says the reason for this immunity is to make it impossible for plan members to come forward and ask for changes to be undone because the sustainability of the province’s pensions is at stake.
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