Friday, May 31, 2024

Robust, Resilient, Reliable

CLAC’s benefits and retirement plans have stood the test of time

By Henk de Zoete, National Board President

Many members are covered by a life, health, dental, and disability insurance plan offered by CLAC and available as part of the benefits package in your collective agreement. And over 100,000 current and former members are participating in CLAC’s pension plan and/or RRSP program, and many are receiving retirement income.

But it wasn’t always so. These plans and programs took a long time to develop.

The benefits plans developed out of a need to provide coverage for members working for a dozen or so electrical contractors in southwestern Ontario in the late 1960s and early 1970s. None of these contractors employed enough electricians to be able to economically offer a benefits package on their own.

With the knowledgeable assistance of an insurance broker, CLAC put an affordable group insurance plan in place. Meanwhile, as our presence in the construction sector continued to grow and expand to other regions of the province, additional plans were put in place. At the same time, workers in long term care, attracted to our values and hands-on representation model, reached out for representation. They too were looking for the security that a benefits plan provided.

It wasn’t long before consolidation and central administration of the various plans became necessary. The union adopted a trusteeship model to provide oversight and governance. In keeping with CLAC’s belief in joint decision making, the board of trustees consisted of members, employers, and union representatives.

In the 1980s, explosive growth in the construction sector in the western provinces resulted in the establishment of benefits plans tailored to the needs of the many different-sized contractors. Again, the plans were overseen by a board of trustees reflective of all participants and beneficiaries.

A few years after the first benefits plan was established in Ontario, CLAC teamed up with Local 6, a construction union that at the time was affiliated with a sister union that had established a defined contribution pension plan in September 1974. After a slow start, the pension plan grew and built a solid foundation with strong investment returns. The plan was governed by a board of trustees and a shrewd but honest general manager. Assets were invested with savvy, expert advice.

The plan featured built-in safeguards against misuse and misappropriation of members’ pension dollars, such as short vesting periods and strict investing guidelines. With the merger of the two unions in 1979, CLAC became the sponsor and guardian of the pension plan.

Under the direction of the board of trustees, who received professional advice over the years, the plan experienced phenomenal growth. This September marks the 50th anniversary of the CLAC Pension Plan, with assets well north of $1 billion.

In line with CLAC’s foundational philosophy of labour relations, member advocacy, and service, I’m pleased to say that the union’s robust, resilient, and reliable benefits and retirement plans have stood the test of time. They’ve provided for members’ life, health, earnings replacement, and retirement income for many years now, and they will continue to do so well into the future.

Robust, Resilient, Reliable

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