Union Officers and Staff Pension Plan
9 tablished by Convention 30 years ago

The Officers and Staff Pension Plan, which covers full time
elected officers and staff in the national and local offices is
currently under attack by some individuals in Local 1-85.

The reason for the attack is uncertain; however, it does appear it
is an attempt to embarrass the IWA or to achieve their own
political gains, or even worse, to establish a climate for a raid
during the next open period.

In view of this the Officers decided to publish the following
article to explain the history and improvements which the plan
was able to provide to retirees, retirees’ widows and future
retirees.

During the 1989 National Convention debates, a resolution
submitted by Local 1-85 calling for the termination of the plan
was overwhelmingly defeated by delegates elected from the Local
Unions to attend the Convention.

© HISTORY — This Plan was estab-
lished at a constitutional convention
of the International Woodworkers of
America in1958 to be put into effect in
January 1959.

At that time it was funded by an
assignment of 8 cents per member per
month of the per capita paid to the
International Union.

It provided a benefit level of $12.00
per month for each year of service
while working for the International, a
Regional Council or a Local Union.
All years of past service of the approx-
imately 155 full time officers and staff
employed by the Union in 1959, were
covered.

WHY WAS IT ESTABLISHED?

By 1959 many members in the IWA,
particularly those working for large
companies were covered by company
pension plans, while at the same time
there was nothing being provided for
the full-time officers and staff in the
way of pensions. This inequity was
recognized and was corrected by the
establishment of this plan in 1958 by
the Convention delegates.

This decision was part of the rewrit-
ing of the entire International Consti-
tution which completely restructured
the IWA. This completely revised con-
stitution (including the establishment
of the pension plan) was voted on in
1958 by referendum ballot of the entire
membership of the IWA and adopted
by an overwhelming majority.

Between 1959 and 1976 there was
no change to the $12.00 benefit level
Quiz provided by the officers and

staff pension plan. The significant
change during this time was that the
amount of per capita allotted to pro-
viding the $12.00 benefit was grad-
ually increased by Convention action
from 8 cents per member per month to
20 cents per member per month.

_ This was necessary for two reasons;
firstly, to try to pay down the enor-
mous unfunded liability of the plan
created when the plan provided the
$12.00 benefit for all years of past
service as a full-time employee of the
IWA, and secondly, there was a dra-
matic increase in the number of full-
time elected officers and staff in the
IWA who were covered by the plan.
Increasing from 155 in 1959 to over
400 in 1976, either actively working or
retired.

In 1976 the amount of per capita
allotted to the pension plan was
increased by Convention action to
27% cents per member per month.
This increase was to bring the fund-
ing of the plan into line with the
pension laws being adopted in Canada
which provided that the plan could
not have an unfunded liability which
could not be paid off in 15 years or less.
The IWA plan at that time would
have required contributions for far in
excess of 20 years at the 20 cent level
to pay off this liability. Secondly it

was necessary to improve the provi-
sion of payments to members’ spouses
upon the death of an officer or staff
member. It was suggested during
debate on this question that full-time
Officers and Staff contribute to the
staff plan; however, this was over-
whelmingly defeated by the voting
delegates.

At an International Convention an
amendment to the constitution was
adopted WITHOUT DEBATE pro-
viding that Local Unions, Regional
Councils and the International Union
could enter into additional pension
benefit programs for the full-time
offices and staff in their respective
jurisdiction of the union, providing
that this action was endorsed by the
appropriate bodies within that respec-
tive jurisdiction.

In 1977 the contribution level was
increased from 27% cents to 30 cents
recognizing there was a need to
increase the $12.00 benefit level which
had been in effect since 1959.

As a result of the increased contri-
bution level and the change over to a
much more effective investment pol-
icy adopted by the pension plan trust-
ees the benefit level was increased
from $12.00 to $14.00 in 1978, to
$17.50 in 1980 and to $24.50 in 1986.

In 1987 after the transfer of funds
from the International plan to IWA-
CANADA the benefit level was in-
creased to $35.00 and finally early this
year it was increased to $37.50.

IWA FOREST INDUSTRY
PENSION PLAN

When this plan was established as
a result of 1972 negotiations every
Local Union and the Regional Council
dealt with the question of whether or
not their full time officers and staff
should be enrolled in this plan. Then
Western Regional Council No. 1 and
all Locals within its jurisdiction
adopted motions to enroll their full-
time officers and staff into this plan.

IWA-CANADA PLAN

Upon the dissolution of the old
International Union and the creation
of IWA-CANADA the assets of the pen-
sion plan were divided and IWA-CAN-
a established the plan we have to-

ay.

It was discovered very quickly that
it was overfunded, and that there are
Government Pension Regulations
requiring the trustees of the plan to
use the surplus to the benefit of the
participants in the plan.

In addition to the two increases in
benefit levels mentioned above, other
changes have been made. Upon exam-
ination it was discovered that of the
82 recipients of the officers and staff
pension as of January 1, 1990, 30 of
them were receiving less than $200.00
per month, more than one half of
these 30 are widows some receiving

pensions of as low as $70.00 per
month. The trustees agreed to
increase these pension up to a mini-
mum of $200.00 per month retroac-
tive to July 1, 1989, and to consider
providing cost of living increases each
year in the future so that these past
officer, staff members or their spouses
can live with more dignity. In addi-
tion any of the past officers, staff or
widows who retire on less than the
$35.00 benefit level were provided
with COLA increases of a little less
than 10% of their pensions.

During the discussion at the 1989
Convention the full-time Officers and
Staff Pension Plan was the subject of
a major debate. Many rank & file
delegates made the point many times
that they were proud of our union and
its leadership, and to scrap this plan
would be akin to demanding conces-
sions from the paid staff of the union.

During the 1980’s, the IWA mem-
bership in Canada, fought many bit-
ter battles to ensure that rank and file
IWA members did not have to make
concessions to their employers.

A large majority of the past mem-
bers or their widows who are cur-
rently receiving pensions from this
plan are also receiving benefits from
the IWA Forest Industry Plan.

This pension plan is a condition of
employment for the participants.
They were made aware of the plan
either when they were elected or hired,
or when the plan came into effect.

The participants in the plan have
planned their retirement income based
on this plan providing benefits.

With some exceptions, almost all of
the wages and working conditions of
IWA staff are guided by the provision
of the Coast Master Agreement.

Some of the other points made by
rank & file delegates to the 1989
National Convention were that full-
time officers and staff are expected to
work many hours outside of a normal
work week, including weekends. They
spend extensive periods of time away
from their home and family and they
are not paid overtime or even pro-
vided with time of in lieu of this.

The democracy of the IWA (second
to none) provides every opportunity
for the will of the majority to govern
this union. The way to have changes
made to the officers and staff pension
plan or any other policy of the IWA is
to put forward resolutions to a con-
vention: The delegates to these Con-
ventions are elected by the member-
ship at the local union level. These are
the members who make the decisions
at convention.

In any discussion about the Pen-
sion Plan it must be recognized that
the IWA Officers and Staff Pension
Plan was established more than 30
years ago. There is not one current
officer or staff member working in
IWA-CANADA who was a staff member
in 1959 when this plan was put into
effect.

The IWA-Forest Industry Pension
Plan came into effect in 1972 about 18
years ago and every local union agreed
to enroll their officers and staff into
that plan.

Rank and file members through the
passing of resolutions at the Local
level and the election of delegates to
upcoming National Conventions will
have every opportunity to propose
and make changes to this plan as
provided for in the National Constitu-
tion.

NDP Provincial Convention
sets ‘compromise’ resolution

Continued from page 2

Harcourt said that Forests Minis-
ter, Claude Richmond should avoid
logging the Carmanah until such a
land use process is implemented.

Federal MP Dave Barrett (Esqui-
malt-Juan de Fuca), who led the
NDP’s only provincial government
from 1972-75 said that compromise
resolution was of the sort that could
have prevented conflicts with the
province agricultural land reserve.

Barrett said “his government made
a mistake of not implementing such a

© Member of Parliament Dave Barrett

Photo by Bob Akester

process to deal with conflict over
urban development of farm lands.”

Provincial Forest critic Dan Miller
said the blueprint will lead the NDP
to a provincial election win and signal
that his government is willing to
resolve conflicts. Miller said “the res-
olution will put an end to 30 years of
laissez-faire capitalism and protect
jobs for the labour movement.”

In other convention activity, the
delegation passed a policy paper to
establish a framework for new labour
legislation.

The paper adopted will reinstate
“policy of free collective bargaining
. .. While minimizing interference from.
outside parties.”

Thus, the NDP pledges to scrap the
ill-fated Industrial Relations Act (Bill
19) and replace it with a new, progres-
sive Labour Relations Act. More than
800 delegates were in attendance at
the three day convention.

The NDP policy paper also calls

for:

e introduction of pay equity legisla-
tion;

e improve work injury prevention
programs;

e provision of skill development pro-
grams for all B.C. workers.

New Democrats also pledge to
ensure that workers shall have the
right of freedom of association and
the policy adopted at the convention
recognizes “the right to exercise that
freedom without interference.”

LUMBERWORKER/MAY, 1990/15