Labour Day. Results of union poll You plan to perform works or to order works done?

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1 PUBLISHED FOR THE EMPLOYERS IN THE CONSTRUCTION INDUSTRY July-August 2009 Vol. 39, n o 6 Union poll Results of union poll 2009 Last June 11, the CCQ announced the results of the 12 th union poll, held in the construction industry throughout the province on June 4, 5, and 6. See the results on page 4. Pension plan for workers in the construction industry Impact of the 2008 returns from the Caisse de dépôt et placement du Québec The negative returns from the Caisse de dépot et placement du Québec and their impact on the pension plans of workers in Québec have attracted much attention from the media. But what is the situation as concerns the participants of the pension plan for workers in the construction industry? What will be the impact of this situation? To learn more, turn to the article on page 3. Annual summer vacations You plan to perform works or to order works done? A person subject to the collective agreements can not perform works or order works done during the compulsory annual vacation period. However, certain exceptions may apply. For information on these exceptions, turn to our article on page 4. Labour Day Statutory holiday Labour Day is a statutory holiday in the construction industry. This year, this holiday falls on Monday, September 7. This means that all work carried out on this date must be paid at the increased salary rate in compliance with the provisions of the sector-based collective agreements.

2 Mo b i l e p o i n t s o f s e r v i c e The towns to be visited in July and August The CCQ has set up mobile points of service in order to accomodate the workers and employers who live several hundred kilometres away from its regional offices and who wish to meet with a member of the CCQ team. In July and August, the CCQ s mobile points of service will be set up in the towns and on the dates indicated in the following table. Since the schedule may change, we suggest that you refer to the CCQ s website for confirmation before setting out to visit a point of service. For information on the towns to be visited during the next few months, we suggest that you also refer to the CCQ s website. Town Location of point of service Date and time Chibougamau Local employment centre of Chibougamau July 6 and August 10, from 1 p.m. to 4:30 p.m. 333, 3 e Rue, bureau 1 July 7 and August 11, from 8:30 a.m. to noon Dolbeau-Mistassini Local employment centre of Maria-Chapdelaine July 16 and August 20, from 10 a.m. to noon 1500, rue des Érables and from 1 p.m. to 4 p.m. Drummondville Local employment centre of Drummondville July 15 and August 19, from 10:30 a.m. 270, rue Lindsay to noon and from 1 p.m. to 4 p.m. Granby Local employment centre of Granby August 20, from 8:30 a.m. to noon 77, rue Principale, R.-C. 02 and from 1 p.m. to 4:30 p.m. Havre-Saint-Pierre Local employment centre of Havre-Saint-Pierre August 13, from 8:30 a.m. to noon 1280, rue de la Digue, bureau 200 La Malbaie Local employment centre of La Malbaie August 13, from 8:30 a.m. to noon 21, rue Patrick-Morgan and from 1 p.m. to 4:30 p.m. Les Escoumins Local employment centre of Les Escoumins August 20, from 10 a.m. to noon 459, route 138 and from 1 p.m. to 3 p.m. Mont-Laurier Local employment centre of Mont-Laurier August 13, from 8:30 a.m. to noon 585, rue Hébert and from 1 p.m. to 4:30 p.m. Saint-Georges Local employment centre of Saint-Georges July 14 and August 11, from 8:30 a.m. to noon 11500, 1 re Avenue Est, bureau 30 and from 1 p.m. to 4:30 p.m. Victoriaville Local employment centre of Victoriaville July 9 and August 13, from 10 a.m. to noon 62, rue Saint-Jean-Baptiste and from 1 p.m. to 4 p.m. Ville-Marie Local employment centre of Ville-Marie August 18, from 1 p.m. to 4 p.m. 1-B, rue Notre-Dame Two Québec apprentices will participate in the WorldSkills Competition Two young apprentices, Mr. Kevin Jeanson and Mr. Mathieu Boily, will represent Canada at the 40 th WorldSkills Competition to be held in Calgary next September. Mr. Jeanson is a student in bricklayer masonry at the Centre de formation professionnelle Pierre-Dupuy. As to Mr. Boily, he acquired his vocational training in refrigeration at the Centre de formation professionnelle de Québec. Both received a $5,000 scholarship from the CCQ. The WorldSkills Competition will bring together roughly 800 competitors from 40 country members of the international organization WorldSkills. These competitors will measure their knowledge and skills in over 30 professional and technical trades. 2 The CCQ hopes the apprentices will benefit from excellent training and enjoy all the success they deserve, as they prepare to go to Calgary in September 2009 to participate in the 40 th WorldSkills Competition. The Commission also wishes to congratulate them for their determination, since they will have to train for several hours every day. Indeed, the training required for this international competition compares with that required for athletes to participate in the olympics. For several years, the CCQ has been a major partner in the Olympiades québécoises de la formation professionnelle et technique, organized every two years by Compétences Québec. These Québec trade olympics precede the Canadian Skills Competition, which in turn precedes the WorldSkills Competition. For the CCQ, this constitutes an excellent means to promote the construction trades among youth.

3 Pension plan for workers in the construction industry Impact of the 2008 returns from the Caisse de dépôt et placement du Québec The negative returns from the Caisse de dépôt et placement du Québec for 2008 and their impact on pension plans and insurance plans have attracted much attention from the media. But what is the situation as concerns the participants of the pension plan for workers in the construction industry? What will be the impact of this situation? As Mr. Ménard mentioned when he appeared before the Commission des finances publiques, the overall impact of the -17% return in 2008 on the Supplementary Pension Plan for Employees in the Construction Industry incurred a loss of assets valued at $2 billion. Once the security reserve was used, this loss generated a $600 million nonprovisioned actuarial deficit in the plan. The President and CEO took the opportunity of this parliamentary commission to put forward a number of courses of action stemming from discussion and exchanges with employer and union partners. For example, he requested that the CCQ partner with the Caisse de dépôt et placement du Québec as regards the strategic orientations touching on its major construction sites. He expressed his hope that the two organizations could agree on the coordination of their responsibilities through a renewed service agreement. We must underline that no changes will be made to the employee and employer contributions in Over the coming months, the employer and union parties may decide to cover this deficit. Short -term forecasts Several options are available to the employer and union parties. 4 They could enforce a provision of the Regulation respecting complementary social benefit plans which, in the event that the plan shows a deficit, provides for a reduction of the employer contribution paid out to the employee s account, equal to the amount required to amortize the deficit. 4 They could modify the Regulation in such a way as to prolong the amortization period for the plan s deficit, currently set at They could also agree on other measures during the negotiations of the next labour agreements to begin this fall. The construction industry s pension plan is not in trouble and has all the liquidity it needs to meet its commitments. Im p a c t o f t h e n e g a t i v e r e t u r n s on the plan s client groups Now let us consider the impact of these returns on the pension plan s different client groups. For retirees and eligible survivors: Once the retirement date is established and the pension is put into service, no change is made to the pensions of retirees and eligible survivors, regardless of the year in which the retirement took place. Pensions will continue to be paid every month for the lifetime of retirees and surviving spouses. If a worker has retired in 2009, the negative return of 2008 will have an impact on the calculation of the pension for new retirees. However, once the pension is fixed and put into service, it is guaranteed throughout the retiree s life and that of the surviving spouse, and it cannot be changed later on. For workers who are currently thinking of retiring: Workers who have accumulated between 35,000 and 40,000 hours worked during their working life will see an average drop of 4% in their pension, representing about $700 per year. This immediate impact results from the fact that the pension plan for construction workers includes a determined contributions section (like an RRSP), which currently represents an average of 23% of the value of the pension. IN A NUTSHELL, THE PENSION PLAN FOR WORKERS IN THE CONSTRUCTION INDUSTRY SEE PAGE 6 The pension plan for workers in the construction industry includes close to 145,000 employed workers, 225,000 inactive participants, and 77,000 retirees and eligible surviving spouses. The contributions rates are determined by the labour agreements between the employer and union parties. The procedures are established by a regulation enforced by the CCQ. Following a very large deficit caused by a major drop in stock markets in 2001 and 2002, the employer and union parties agreed on a new recovery plan in 2004, and made a modification to the plan that put an end to the accumulation of new pension credits in the determined benefits section. Thus, since 2005, workers have participated in a determined contributions section throughout their working life. In any case, when a worker retires, the sum that he or she has accumulated is used to provide a pension guaranteed by the plan. The financing plan also provided for the accumulation of reserves. Positive returns accumulated from 2005 to 2007 formed a security reserve that fully played its part by absorbing a large part of the losses caused by the negative returns in In addition, the investment policy, established in 2004 jointly by the employer and union partners, allows for prudent asset distribution. This no doubt helped to mitigate the negative impact of the returns for

4 Union poll Results of union poll 2009 Last June 11, the CCQ announced the results of the 12 th union poll, held in the construction industry throughout the province on June 4, 5, and 6. Once the compilation was complete, the new representation levels of the workers for each of the union associations was established as follows: 2006 (%) 2009 (%) CSD-Construction CSN-Construction CPQMC-International FTQ-Construction Syndicat québécois de la construction Among those eligible to join in determining the representativeness of the unions (called voters), 10,807 visited the polls to make known their choice of union allegiance. The presumption principle was applied, as only those who wished to modify their union allegiance had to vote. Those who were eligible to vote but who wished to preserve their current union allegiance expressed their wish by not voting. During a press conference, Mr. André Ménard, President and CEO of the CCQ, praised the work of the union association representatives. The union leaders and their teams played by the rules, he stated. They acted in a responsible manner and contributed to maintaining a good climate on the construction sites. I wish to thank them for their cooperation. Remember that the union vote, introduced in 1975 by the Government of Québec, aims at determining the representation levels of the union associations for purposes of negotiating the labour agreements. It also serves to determine the number of members who will seat on certain joint committees of the CCQ. According to the Act respecting labour relations, vocational training and manpower management in the construction industry, the poll must take place 11 months prior to the expiry of the labour agreements. Note that the current labour agreements will officially expire on April 30, Annual summer vacations You plan to perform works or to order works done? A person subject to the collective agreements can not perform works or order works done during the compulsory annual vacation period. However, certain exceptions may apply, as is namely the case for maintenance, repair, alteration, or renovation works, or works performed in an emergency. All other exceptions are set out in the sections of the collective agreements respecting the compulsory annual vacations. If you plan to perform works or to order that renovation or alteration works be done, as an employer, you must enter into an agreement with the concerned workers in order to change the dates of the compulsory vacation period. You must then report this agreement to the CCQ and to the majority union group without delay. These provisions apply to the four collective agreements. To find out more about special situations, refer to Division XIX of the collective agreements for the institutional, commercial and industrial sectors, and to Division XX for the civil engineering and roads sector. Residential sector As to the residential sector, all works linked to a new building and considered as light residential works may be carried out if certain conditions are met. These are listed in Division 24 of the collective agreement for this sector. However, the employer must enter into an agreement with the concerned employee if he or she wishes to depart from these conditions. In this case, the employer must report the agreement to the CCQ and to the majority union association within two business days following the conclusion of the agreement. Note that the compulsory annual vacation period begins on Sunday, July 19, at 0:01 a.m., and ends on Saturday, August 1, at midnight. Remember that the CCQ will not issue any authorizations or permissions to carry out works during the vacation period in the construction industry. OPEN OR CLOSED? Please note that in order to further the observance of the collective agreements, statutes and regulations, the CCQ will maintain its inspection services during the vacation period, namely as regards enterprises that do not benefit from the overriding provisions set out in the agreements. If you wish to file a claim regarding a site, and solely for this purpose, you may call the following telephone numbers: Montréal: Other regions: As to our customer services, they will be closed during this vacation period. Don t forget that a host of information is available on our Web site. Visit us at 4

5 A checklist to help you to better complete your monthly report Here are a few tips to help you to better complete your monthly report. Consistency of information Make sure the surname, name and social insurance number you provide in the monthly report are the same as those that appear on the employee s competency certificate. By correctly entering the employee s information, you ensure that the hours added to his ir her file are up to date. Thus, you can avoid being confronted with wage claims transmitted by an employee for failure of reporting hours in his or her file. LESS COST AND MORE TIME FOR YOUR ENTERPRISE In 2008, almost 50% of the monthly reports were transmitted to us by means other than on paper. Thus, the enterprises who transmit their monthly reports by telephone, the Internet or online see their files and those of their employees updated more rapidly. In addition to saving time, these enterprises reduce the administrative costs linked to this obligation (a reduction of up to 90%). Think about it! Better still: You can avoid these problems by filling in your monthly report, not on paper but through other means, namely by telephone or on the Internet! Monthly report by telephone service The Monthly report by telephone service was implemented 10 years ago! This service allows you to transmit the data of your monthly report to the designated CCQ personnel by telephone. We estimate that it takes only a minute per employee to complete your monthly report by telephone. When you hang up, you know the amount of your payment. You may subscribe to use this free service at all times. Interested? Fill in the form below and send it to us by mail or by fax. We will then contact you to give you the information you need to complete your monthly report by telephone. The Internet: another efficient means of transmission Be reminded that you can also complete your monthly report on the Internet, using either our online services or an accounting software that includes a function allowing to transmit data on the Internet. This service is offered at all times, whenever it is most convenient for you, and is protected and secure. For further information, visit our website at How to obtain hard copies of the monthly report? Though it is possible to complete the monthly report using the telephone, the Internet or an accounting software, some employers prefer to do so on paper. If you prefer paper, don t forget that you can obtain printed copies of the monthly report through our website at You can also photocopy any unused copy of the monthly report you have on hand, even if a number appears at the bottom of the page. SUBSCRIPTION FORM FOR THE MONTHLY REPORT BY TELEPHONE SERVICE Please accept my application to subscribe to the Monthly report by telephone service offered free of charge by the CCQ. Company name: Employer number: OR Québec Enterprise Number (NEQ) : Fax number: Telephone number: Name of applicant: Signature: Subscription form Monthly report by telephone Complete this subscription form and send it to us by fax at , or by mail to the following address: Commission de la construction du Québec P.O. Box 1000, Mount-Royal Station Montréal, Québec H3P 3J4 5

6 Erratum Safety equipment Please note that an error was included on our website in the section Salary and contribution rates. This error concerns the safety equipment allowance for the driller trade (code 697) and the general helper tile setter trade (code 715). Driller (code 697) For the institutional and commercial sector, schedules C-4, C-5, C-7 and C-8, the allowance posted on our website should have been $0.50. General helper tile setter (code 715) For the institutional and commercial sector, schedules C-3 and C-6, the allowance posted on our website should have been $0.35. PENSION PLAN FOR WORKERS IN THE CONSTRUCTION INDUSTRY For employed workers (about 145,000): The average age of these workers is 39 years. If we consider a 35-year working life horizon during which they participate in the plan, they can therefore expect, based on this horizon, a return of 6.3% from their pension plan. For inactive participants (about 225,000): The plan includes some 225,000 inactive participants workers who have accumulated contributions but have left the industry. The pensions accumulated by these participants are low and thus little affected by the negative returns in Any questions? If you have any questions regarding the pension plan for workers in the construction industry, don t hesitate to call the CCQ using the employers line. If your employees are concerned about this issue, invite them to call the CCQ s customer services at You have a new address? Don t forget to update your file or that of your accountant! You are moving or you wish to modify your employer file? Don t forget to notify the CCQ so that it can update the information concerning your company. Thanks to this update, you will avoid much inconvenience or useless waiting, often caused by erroneous information in our files. The fact is that employers often forget to transmit to the CCQ the modifications to their address or their accounting services. Be reminded that you can update this information using the CCQ s online services. If you have not subscribed to use these services, you can transmit these changes by telephone using the employers line. You can also send your modifications by telecopier to one of our regional offices. Should you choose to do so, you must provide us with all the information required for processing, including your employer number. You must also sign your request. Note that only a member of the company, duly registered in your employer file, can sign a modification request. You d like to subscribe to use the online services and benefit from a host of services at all hours, day or night? To do so, visit our website at choose the Employer profile, and click on the icon Access to online services on the left of the screen. The Bâtir is a monthly publication intended for the employers of the construction industry. Published by the Direction des communications of the Commission de la construction du Québec, 3530 Jean-Talon Street West, Montreal, Quebec H3R 2G3 Legal Deposit, National Library of Canada ISSN PU (0907)