The privatization Fight-Back Fund
As part of the merger agreement between OPSEU &
OLBEU, OPSEU established a Privatization Fight-Back Fund for its
members at the LCBO. Section 13 of the merger agreement says:
The initial size of such fund will be determined by
the market value of OLBEU assets, at the time such assets are
liquidated; plus the cash assets of the organization, including
money on the account of zones; reduced by all liabilities and/or
debts of OLBEU. Once established within OPSEU, the fund will accrue
interest and will be maintained from year to year for the benefit of
Under this provision, the value of the fund was
determined to be $2,836,000 at the end of 2005. The value of this
fund has been reported in the audited financial statements of OPSEU
every year since the merger. As well, OPSEU provides quarterly
updates to the Divisional Executive on the value of the fund,
including the details of any expenditures. As of December 31, 2010,
the value of the fund was $3,050,000.
Why has the amount increased? Hasn’t
the Division spent any money?
Yes, the Division has spent over $232,000 since 2005
from this fund. However, according to the merger agreement, the fund
accumulates interest. So, even though the Division has used over
$232,000, the value of the fund has still increased by $214,000.
This means that since the fund was first established in 2005, it has
actually increased by $446,000!
What about the building at 5757
The Fight-Back fund includes the value of the
Coopers building at the time of the merger. At that time, the
parties conducted market value assessments and it was agreed that
the value of Coopers would be established at $1.1 million. This
amount has been included in the Fund and has been earning interest
The OPSEU Executive Board recently transferred the
Coopers building from the Strike Fund to the General Fund.
What impact does this have on the Fight-Back
This has no impact on the Fight-Back Fund. The
building itself does not belong to the Fund, the building belongs to
OPSEU. It is the agreed upon value of the building ($1.1 million +
interest) that is included in the Fund. This amount has not changed
as a result of the Executive Board decision. The amount in the Fight
Back Fund will continue to earn interest as it has been since the
Fund was initiated
What expenses come out of the Fund?
As per the merger agreement, the Fund can only be
used to implement strategies/plans designed to protect the members
of the Division from privatization. Such plans are developed by the
Division, in consultation with OPSEU Campaigns and/or Communications
staff. The Divisional Executive has been provided with regular
quarterly updates on the expenditures that come out of the Fund.
Warren (Smokey) Thomas