Resolution #11: Labour funds (Official French version)
Labour funds (Fonds de solidarité FTQ, Fondaction CSN) and Capital régional et coopératif Desjardins cost Québec taxpayers 221 M$ in 2012. Only 21% of raised funds were invested in Québec SMEs. Portfolio return is so low that it would be hard pressed to raise capital were it not for the considerable tax advantage it offers, which is paid for directly by the federal and provincial governments. The cost of managing the Fonds de solidarité FTQ was 130 M$ in 2013.
Governance of labour funds is poor. Unions generally do not invest in the funds and yet unions, not investors, appoint fund administrators. And shareholders can not withdraw their funds prior to retirement even if they are dissatisfied with the return on their investment.
A CPQ government will review the rules on workers funds. This revision will include:
- a cap on underwritten share;
- a redeployment of labour funds capital;
- a redefinition of the funds’ mandate to ensure that truly helps Quebec SMEs; and
- a review of government strategies with a view to encouraging investment in venture capital by promoting a model where business angels and private investors would provide the majority of the development capital.