Judge mandates mediation for union-sponsored proposal aimed at increasing Saskatchewan Healthcare Employees' Pension Plan benefits through indexation
April 25, 2024
A judge has ruled that a union-sponsored proposal to boost the benefits of Saskatchewan Healthcare Employees’ Pension Plan members was within the terms of the trust agreement and must proceed to mediation.
Under the terms of the trust agreement, two governance committees — one made up of union members and the other of employer representatives — are responsible for discussing changes to plan contribution rates and benefits, with a dispute resolution mechanism directing matters first to mediation and then, failing agreement, to arbitration.
However, the employer committee challenged the union’s referral of the benefit increase matter to mediation on technical grounds, claiming that notice could only be provided every three years on January 1st , and that it must be delivered personally by one of the committee members.
In addition, the employers claimed that committee meetings were only meant to discuss increases in contribution rates, which the union’s proposal specifically sought to avoid by funding the benefit increase using surpluses.
In his ruling, King’s Bench for Saskatchewan Justice Robertson rejected the employer committee’s restrictive interpretation of the trust agreement terms, finding that the union is entitled to give notice at any time such that notice is given at least a full year before the next triennial date for changes to the plan, and that funding benefit improvements from surpluses is an appropriate topic of discussion. Justice Robertson concluded that the union’s notice was valid, and directed the parties to proceed to mediation.
Click on more information below to read the judge's decision:
