The Public Service Alliance of Canada (PSAC) has slammed the Public Sector Pension (PSP) Investment Board’s involvement with a for-profit, long-term care provider, saying it is inconsistent with the Board’s fiduciary and legal obligations to its members.
The union, which represents more than 200,000 Canadian public sector employees, says the Board should end its investment in Revera Inc., its wholly owned subsidiary, and transfer its management and control to Provincial health authorities.
Pensions and Disability Insurance Officer at the PSAC, James Infantino (pictured) said the issue had been raised in the past on several occasions “but we’ve got nothing but lip service back”.
“We think the way they’ve managed these facilities put the [pension] plan in a situation of undue risk and that is contrary to its obligations toward plan members,” Mr Infantino said.
Revera, which operates long-term care and retirement homes across the country, is the target of a $C50 million ($A53.5 million) class action lawsuit launched by families of Coronavirus victims in the company’s Ontario facilities.
The families allege the facilities lack proper sanitation and testing protocols to prevent the spread of the virus.
In a letter to the President and Chief Executive of PSP, Neil Cunningham, National President of the Union, Chris Aylward said it suspected that the lawsuit would be the first of many.
“The PSAC has long warned PSP Investments that the continuation of business practices without addressing the concerns of our organisation would not only be detrimental to the residents and employees of Revera Inc., but could also pose long-term consequences for the contributors and beneficiaries of the Federal Public Service Pension Plan,” Mr Aylward said.
In a reply to Mr Aylward, Mr Cunningham wrote that the PSP insisted its partners operating the assets it invests in “use best industry practices in their operations, including, but certainly not limited to, health and safety concerns for the workers and all those who access our facilities”.
“This is especially true for residents and staff of Revera-operated long-term care homes and other facilities,” Mr Cunningham said.
Ottawa, 30 May 2020
