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Union local leaders call for independent forensic audit

The Union of Northern Workers headquarters in Yellowknife. Emily Blake/Cabin Radio
The Union of Northern Workers headquarters in Yellowknife. Emily Blake/Cabin Radio

The leaders of several union locals are calling for more financial transparency from the Union of Northern Workers, or UNW.

The UNW represents thousands of territorial government workers as well as staff at various northern municipalities, businesses and mines.

In an April letter to the union’s parent – the Public Service Alliance of Canada, or PSAC – five local presidents and one former president requested a third-party forensic audit of UNW finances.

They further asked that the full results of that audit be made available to union members upon request within six months.

“Our members contribute millions in dues, yet serious concerns remain unanswered about their use,” states the letter, which was recently obtained by Cabin Radio.

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“Where is the money going? How can we expect members to trust UNW leadership to negotiate fair wages and benefits when there is no clear accountability for how dues are managed?”

The letter alleges, in particular, that the accumulation of lieu time and vacation pay by UNW executives has gone unchecked, “allowing them to stockpile paid leave indefinitely and receive large payouts over extended periods – years and years – even after leaving office,” and such benefits are not afforded to union members by their employers.

The letter further asserts that “repeated efforts to discuss financial transparency have been blocked, censored or ignored” by the UNW executive.

The local leaders state all internal avenues for accountability have been exhausted and an independent forensic audit would provide full transparency on “executive compensation, benefits, discretionary spending, professional fees, travel, and financial management potentially misaligned with member interests.”

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“This is not about division, it is about ensuring that UNW remains strong, accountable, and worthy of the trust of the workers it represents,” the letter states.

“If union leadership expects members to stand with them in bargaining, then they must first be accountable to those members. That trust cannot exist without transparency.”

UNW financial statements ‘in order and compliant’

In a statement to Cabin Radio, PSAC spokesperson Michael Aubry said the UNW provides annual audited financial statements to PSAC. He said audited financial statements are also reported to UNW locals and the UNW convention.

“The auditors and PSAC have confirmed that the UNW budget and financial statements are in order and compliant with our governance and financial obligations,” Aubry wrote.

The April letter states, however, that financial reports released to union members “do not provide granular information that would allow members to understand how it is possible for UNW executives to accumulate years and years of banked time and how much such benefits cost.”

PSAC did not respond to Cabin Radio’s questions about whether it was willing to commission an independent forensic audit or how it has responded to the concerns expressed in the letter.

The letter was signed by local presidents in the union’s Hay River, Somba K’e and North Great Slave regions. They asserted that other locals “may have an interest in joining this call, but they remain shut down and unsupported.”

The UNW is made up of 27 locals.

None of the locals whose presidents signed the letter responded to Cabin Radio’s requests for comment, and nor did the UNW.