New Brunswick repeals law on union pension plans

The New Brunswick government is repealing legislation that would have forced five unions into a shared-risk pension plan. This decision ends a long conflict with the Canadian Union of Public Employees (CUPE), which had challenged the law in court. The Pension Plan Sustainability and Transfer Act was introduced in late 2023. It aimed to address a $265-million shortfall in the pension fund by requiring unions to transfer to shared-risk plans. The legislation sparked protests and legal challenges, with unions arguing it violated their rights to free bargaining. Finance Minister René Legacy announced the repeal, stating it fulfills a campaign promise. He emphasized that negotiations between the government and unions should happen at the bargaining table, not in the legislature. Union leaders welcomed the decision to repeal the act. Sharon Teare, president of the New Brunswick Council of Nursing Home Unions, said the repeal shows a willingness to collaborate. Sandy Harding from CUPE also noted that the move signifies respect for the rights of unions. Although the government cannot revert to the old pension plans, they aim to find a sustainable solution. With the repeal, legal actions against the government will be withdrawn, and unions express readiness to negotiate with the new government.