LBED Fact Sheet
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 the Division.

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.

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!

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 since 2005.

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 Fund?

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

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.

Denise Davis
Chair, LBED

Patty Rout
Vice-President, OPSEU

Warren (Smokey) Thomas
President, OPSEU