Alleging that an insolvency-era agreement signed between Laurentian University and the province is interfering with collective bargaining, the university’s faculty union has launched a Charter challenge against the government of Ontario.
In a news release, the Laurentian University Faculty Association (LUFA) said that in exiting insolvency in 2022, Laurentian’s administration signed a long-term loan agreement with the Government of Ontario that is in effect until 2038.
But because of some of the stipulations in that loan agreement, the possibility of bargaining the terms of the pension plan is restricted, the union said, a key issue for faculty at the institution.
At a press conference today and later in conversation with Sudbury.com, LUFA president Fabrice Colin said he’d like to see the loan agreement clauses which he says are interfering with free and fair bargaining “disappear.”
“For the last four years, our members have made enormous sacrifices to ensure Laurentian University could continue to serve Francophone, northern and Indigenous communities across the province,” Colin said from the news release.
“It is only fair that the Government of Ontario remove any limitations to our right to bargain fully the terms of our pension, or, allow our employer be able to repay its debts so it can get back to the bargaining table and deliver on fair working conditions, comparable to those enjoyed by colleagues at other universities across the province.”
The Canadian Charter of Rights and Freedoms enshrines the right to collective bargaining, and with its court challenge LUFA alleges the deal between the province and Laurentian infringes on the union’s bargaining rights.
At issue is Laurentian University’s $35-million long-term loan with the province, signed in 2022 as part of its exit from insolvency restructuring under the Companies’ Creditors Arrangement Act (CCAA).
“This loan agreement includes language that prohibits the university administration, as our employer, from entering negotiations to improve our retirement pension plan,” said Colin, speaking at a Nov. 17 press conference.
In a survey, he said members made it clear they wish to move to a pension plan that’s out of the hands of Laurentian University, one that’s “comprised of many universities in Ontario, including University of Toronto.”
However, the terms of the exit loan, which would see Laurentian take until 2038 to pay off what it owes, prohibits that.
LUFA said because of the loan agreement between the province and the university, Laurentian is not to participate in any pension plan administration, sponsorship or creation without the consent of its lender, which in this case is the province.
Colin said the university has the money in the bank to pay off the loan from the province, and if it did so, there would no longer be an issue with the pension plan negotiations.
Laurentian, which posted a $55.2 million surplus for 2024-2025, now finds itself “in a stable and healthy financial situation, one that should allow it to reimburse its loan to the government in full,” and no longer be limited by the loan agreement, Colin said.
“That could be paid off tomorrow, if the university had to do it,” he told reporters after the press conference. “They have $212 million in available cash.”
But Laurentian is prohibited from doing that under the loan agreement until 2027 as well, Colin said, and both sides would have to agree.
With LUFA’s current collective agreement having expired June 30, the two sides started bargaining in earnest Nov. 17, when they were due to exchange full bargaining packages.
Sudbury.com reached out to Laurentian University on the union’s Charter challenge, asking for an interview with president Lynn Wells.
We instead received this brief statement. “The concerns raised by the faculty association would have to be addressed by the courts,” said the statement. “As a result, Laurentian is not in a position to comment on them any further.”
Laurentian also sent us a written statement last week, when we asked for an interview with Wells about the bargaining with LUFA.
"Laurentian is committed to productive negotiations with the faculty association. Faculty members and teaching staff are at the heart of the university’s commitment to deliver an exceptional student experience, to lead innovative research, and to reach our strategic objectives,” said the statement from Wells’ office.
“They are valued and respected members of the university community. We will provide further updates directly to the university community as negotiations progress."
We also reached out on the matter to both communications staff for the Ministry of Colleges, Universities, Research Excellence and Security (MCURES) and the office of Minister Nolan Quinn, who holds that portfolio.
Following this article's initial publication, we received a brief written statement from communications staff with MCURES.
“From the beginning, our government was there for students in northern Ontario by supporting Laurentian University following their decision to file for insolvency in 2021," said the ministry statement.
"As they emerged from the CCAA process, we provided a long-term loan to Laurentian University based on their ability to achieve financial sustainability and maintain operations.
"This agreement is in place until 2038 to support the institution’s accountability, transparency and financial discipline while ensuring ensure minimal disruption to students.”
Colin said the gap between the expiry of the last agreement in June and substantial bargaining is due to the pension issue, with the two sides looking into the matter, including engaging in mediation.
But in September, Laurentian made it clear that they couldn’t guarantee negotiations on the pension changes because of the exit loan agreement terms.
Asked by media during the press conference if the Charter challenge could hold up bargaining, Colin said LUFA is committed to bargaining in good faith.
He said the union plans to “give a real chance to the bargaining process,” but in terms of the pension issue, “the ministry should understand that we are serious.”
In terms of LUFA’s possibility of success with the Charter challenge, Colin said “I think the interference is clear, so I don't think that ministry is particularly looking for some bad publicity and wants to show that they are supportive of our community.”
As for the chances of a strike, Colin told Sudbury.com last week that “job action is always a possibility. As you know, that’s adding pressure to the employer for a fair deal.”
He said the union does not have a strike mandate from members as of yet, as this would be premature.
LUFA’s counterpart union, the Laurentian University Staff Union (LUSU), signed a three-year contract with the university in July 2024.
The university’s last contract with LUFA, which had a five-year term retroactive to July 1, 2020 and ran to June 30, 2025, was overseen by court-appointed mediator Justice Sean Dunphy as part of the university's insolvency.
The April 2021 term sheet for the contract with LUFA included, among other concessions, salary cuts, changes to the pension plan and job losses.
In the end, 81 per cent of LUFA members voted in favour of the contract, but at the time, Colin said it was a vote under duress, “because the alternative was the failure of the ratification vote and therefore the failure of the CCAA process.”
Colin now says “it's time to turn the page on the nightmare that was brought by the CCAA proceedings.”
Joining the LUFA president at the press conference were Robin Whitaker, president of the Canadian Association of University Teachers (CAUT) and Rob Kristofferson, president of the Ontario Confederation of University Faculty Associations (OCUFA).
Both associations say they will be applying for intervenor status in LUFA’s Charter challenge.
“This round of collective bargaining is a crucial step in turning the page on the nightmare that was brought on by the CCAA filing in 2021,” said Whitaker. “We can't let the government of Ontario and this loan agreement stand in the way of doing that.”
Heidi Ulrichsen is Sudbury.com’s assistant editor. She also covers education and the arts scene.