Conflicting views on Laurentian University's debt plan

Laurentian University's creditors have a big decision to make as the school looks to emerge from insolvency and repay some of its debt, and now, more affected groups are weighing in with recommendations.

While a group representing terminated faculty calls for votes against the proposed plan of arrangement, two major groups representing current faculty and staff are recommending that creditors vote in favour of it.

The Laurentian University Faculty Association (LUFA), staff union (LUSU) and school's board of governors made the recommendations to their members in a news release Aug. 16.

"Parties have been engaged in negotiating the plan of arrangement for several months. Following further negotiations on issues important to its members, including a commitment to union consultation on governance reform and a commitment to fast-track the evaluation process in connection with three new faculty positions with a view to adding up to three tenure track appointments in 2023, LUFA has joined LUSU in confirming that it supports the (Companies' Creditors Arrangement Act) Plan," the school said in a news release.

"Implementation of the plan will secure the future of the university, continuing employment for approximately 600 full-time employees and several hundred part-time employees, the continuation of the pension plan, and no disruption for students."

The Terminated Faculty Committee said in a letter provided to CTV News, the concern that voting against the proposal would lead to the school's closure is false.

"In past CCAA cases, a vote against the plan simply sends all the parties back to the negotiating table to come up with a better plan. In some cases, CCAA insolvency plans have gone through as many as four revisions," the committee said.

Louis Durand, the LUFA vice president is quoted as saying the plan represents the best path forward for his group's members.
"It provides additional faculty input in governance, protects our members’ hard-earned pension plans, and secures the future of Laurentian University in Sudbury," Durand said.

The Terminated Faculty Committee disagrees.

"The plan would fundamentally change what it means to be a faculty member, it would strip what little remains of collegial governance and set back working conditions by generations. The faculty will no (longer) lead in academic matters through the Senate, and the faculty’s professional expertise will no longer be respected," it said.

"Laurentian’s proposed plan allows the board of governors to implement the NOUS report as they see fit, which will result in a 'top-down,' non-transparent governance model dictated by the board of governors. It will not lead to a university in which decisions are made 'through a democratically elected, transparent, accountable, and representative governance bodies.'"

Creditors will vote on the proposed plan of arrangement on Sept. 14.