This is a remarkable article, given the stupidity of some of the labor leaders quoted in it. At least in the US (don't have a clue what Canada's laws are) there are absolutes governing the running of trust funds. Investments, gifts, kickbacks and the like are all under the eye of the DOL. As trustees of these funds, we run the risk of serious penalties and jail time for violations. It is encumbant that trustees are overseeing what other trustees are doing. The ignorance is bliss theory ( didn't know) doesn't work.
I've seen several comments on this site about the free trips to the IFEBP conferences, but i can tell you they should be mandatory for all trustees. There's a whole other issue about what they do when they get there, but we are working on that. It's been my experience that too many trustees let the professsionals make the critical decicions. I won't make any friends with my brothers and sisters in the leadership, but i strongly encourage members to pay attention to their trust funds. You have the right to ask questions and to get answers. The majority of the funds are run well, but foolish mistakes like in this article could destroy your pension or welfare plans.
Active participation in your Unions will be the thing that brings about change, not whinning about what someone is paid.
Members settle suit against pension fund trustees
This report from a recent issue of the Oregonian will interest those who are concerned about the prudent investment of union pension funds:
Trustees who placed Portland Plumbers union trust funds with investment firm Capital Consultants have agreed to pay $3.7 million to settle a lawsuit filed by members accusing them of negligence.
Pension and benefit trust funds affiliated with Local 290 of the Plumbers, Steamfitters and Shipfitters Union invested about $40 million with Capital Consultants only to see federal regulators seize the firm in September 2000 for running an alleged Ponzi-like scheme. About $29 million of the Plumbers' total was in questionable investments that are either lost or at risk.
Trustees from three other unions -- the Oregon and Idaho Laborers unions and Local 11 of the Office and Professional Employees International Union -- are expected to settle similar class-action lawsuits within days.
Members of six unions in all sued their fund trustees after the collapse, accusing them of imprudently investing their money. Federal pension law requires trustees to "utilize the care and skill of a prudent expert in selecting and monitoring" their funds' investments and advisors.
Read the rest.
More articles about this pension fund caper
Activist union targets firms' auditing
quote:
The carpenters' union, long a force of shareholder activism in the United States, is turning its attention to Canada with a campaign to pressure companies to disclose what they are paying their auditors to do audit and consulting work. So far, the international union, whose members jointly oversee $38-billion (U.S.) in pension funds, $3-billion of that in Canada, says it has persuaded three companies -- Suncor Energy Inc., Canadian Tire Corp. Ltd. and Petro-Canada -- to report those numbers in this year's proxy circulars. The amount companies pay accounting firms for audit and other consulting services is regarded by many as a key factor in determining auditor independence. The union, with a membership of about 50,000 in Canada, says it has sent shareholder proposals to several other companies, including Loblaw Cos. Ltd., Biovail Corp. and Rothmans Inc., and plans to ask as many as 60 Canadian companies what they pay their auditors at annual meetings this year.
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Active participation in your Unions will be the thing that brings about change, not whinning about what someone is paid.
I have no idea what that has to do with this topic (cheap shot maybe?)... whining about what someone is getting paid is a legitimate response although, in your case Bill, I can see why it doesn't concern you - afterall it's not your money that's getting pissed away. 
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posted by slek:
[qb] [QUOTE]Active participation in your Unions will be the thing that brings about change, not whinning about what someone is paid.
I have no idea what that has to do with this topic (cheap shot maybe?)... whining about what someone is getting paid is a legitimate response although, in your case Bill, I can see why it doesn't concern you - afterall it's not your money that's getting pissed away.
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This topic was about trust fund abuses. Encouraging members to pay attention to those issues, to know what the leadership is doing, is exactly what will bring about change. A leaders salary can be small potatoes compared to the damage bad decisions will do to health and welfare plans or worse yet pension funds.
As far as not being concerned because it is'nt my money, excuse me, after 37 years as a dues paying member, i think you're being a tad presumptious. Like i've said any number of times on this site, i try to deal with it from a positive perspective. Rebuilding this movement will only happen when workers can believe in it, not because they hate the leadership or what they are paid.
OT
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A leaders salary can be small potatoes compared to the damage bad decisions will do to health and welfare plans or worse yet pension funds.
Small potatoes or not, it is still money being (ab)used inappropriately. You add up the salaries from any medium sized local and you'll find the sum will likely be a staggering amount/a small fortune/better used elsewhere.
These are not specialized people working in these unions. Sure they may have had access to further education after taking position, and hands on experience is the best education, but I don't think you'll find very many university degrees hanging on the wall at the office.
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As far as not being concerned because it is'nt my money, excuse me, after 37 years as a dues paying member, i think you're being a tad presumptious.
Presumptious? Maybe. Completely off the mark? I doubt it. I'm pretty sure your future is a tad more secure than most members'.
Cleaning up...
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the leadership or what they are paid
... is a critical step that needs to be taken before...
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workers can believe in it
It's about sacrifice remember?
You said so yourself.
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When the labor movement(leadership and membership) comes to grips with this being about us and we, not i and me, we will have workers fighting to get in.
/OT
*shameless bump*