Mayors unite to negotiate pension reform

CTV Montreal: Unions blame corruption for pension Unions say there is a direct link between mismanagement and the $3.9 billion pension fund deficit.

Mayors of dozens of town and cities across Quebec are forming a united front in the looming pension disputes.

Montreal Mayor Denis Coderre, joined by the mayor of Westmount Peter Trent and Suzanne Roy, leader of the Union of Municipalities of Quebec, were in Montreal on Monday to show their solidarity.

They said that while they respect unions and their employees the staggering deficits across Quebec must be dealt with, preferably fairly and calmly.

Cities and towns across Quebec are facing a combined $3.9 billion in deficits, due in part to underfunded pension funds.

Many municipalities and their unions have a 70-30 split when it comes to pension funding, and the provincial government is leading the way in saying this must change.

Trent said Monday that municipal deficits are a longstanding problem that must be dealt with, saying it is unfair and not realistic to expect cities and towns to keep borrowing money to pay retired employees.

Last week the Liberals tabled Bill 3, a proposal to reform public pensions and set up a framework for 18 months of negotiations and, if necessary, six months of arbitration.

Many unions have called the tabling of Bill 3 and the proposals to reform public pensions a "declaration of war," but mayors are calling on union leaders to tone down the rhetoric.

Coderre said even once the law is passed there will be two years to work out a way to fund pensions.

The provincial government is recommending union members increase their own retirement funding, contributing up to half of the required amount.