40 years of the Fonds de solidarité FTQ | An Unexpected Legacy of Economic Education

When he was appointed first President and CEO of the Fonds de solidarité FTQ in 1983, Claude Blanchet was well aware of the mandate that awaited him: finding money to invest in companies. What he does not know is that the organization is preparing to play a locomotive role in a major economic education campaign that continues today.

“We had never thought of the importance that economic training would have had in changing mentalities in Quebec,” he summarized in an interview with The Press. To encourage workers, we had to explain to them why putting $10 in the fund would create jobs. »

Beyond the effect that the Fonds de solidarité FTQ has had on the Quebec economy, the 77-year-old man believes that the democratization of financial literacy in the union environment is one of the main legacies of the organization. It has narrowed the gap that sometimes exists between unions and the private sector, says Mr. Blanchet.

With net assets in excess of $18 billion and several hundred thousand shareholder-savers, the Fonds de solidarité FTQ no longer needs an introduction. About one out of six Quebec workers is a shareholder.

But at the time of its constitution, thanks to a law adopted by the National Assembly exactly 40 years ago this Friday, the portrait is very different. Today’s labor shortage is a utopian concept. Companies are not looking for workers. Rather, they seek to get rid of it. The proof: the unemployment rate reached 13.9% in Quebec in 1983. We had to wait until 1988 before seeing it fall back below the 10% mark (9.5%).

Despite the tax credits offered for the purchase of shares, the workers are not convinced of the “well-foundedness” of this tool, recalls Mr. Blanchet, who will lead the institution until 1997. At the time, the president of the Quebec Federation of Labor (FTQ), Louis Laberge – who also played a key role in the creation of the organization – had to intervene.

“Louis said to them: ‘You are going to put the equivalent of a pack of cigarettes a week in the Fund and with that we will create jobs for our brothers and sisters who don’t have any’”, explains Mr. Blanchet. People were asking to understand a little more. We had to do a lot of training. We hadn’t imagined that. »

Economy 101

This is what sets the table to a new structure. Economic concepts – the importance of profits, understanding financial statements – are taught to local representatives as well as members of union offices. Over time, this has “changed the future of Quebec” by bringing the union world closer to that of business, underlines Mr. Blanchet.

“Before the Fund, Quebec was the champion of lockouts and strikes,” he says. Across Canada, people made fun of Quebec. The workers were able to understand why capital was needed in companies and to understand the need for profits in a company. »

Former Quebec finance minister Raymond Bachand agrees. Administrator of the labor fund at the time of its creation, the former politician also directed it from 1997 to 2001. He speaks of “cultural evolution”.

Through the Center de formation économique, the Fonds de solidarité FTQ pursues this mission of in-company education. This program involves “leaders and employees [des] partner companies” to promote “a better understanding on both sides of the economic and financial issues”, explains the Fund.

Still useful?

The economic context has changed a lot since the birth of the labour-sponsored fund. Due to its size and that of its net assets, should the organization continue to benefit from tax credits when individuals acquire shares? Benoît Lévesque, professor emeritus of sociology at UQAM and co-author of a book on the Fonds de solidarité FTQ, thinks so. The reason: the investor is always a major player in the venture capital niche, where start-ups or companies in the research and development stages are financed.

“There is a regional dimension,” he says. Venture capital funds, they are almost all concentrated in the big cities. The Fund has branches in each of the regions. »

For his part, Mr. Bachand recalls that economic shocks have been rather rare since the financial crisis of 2008. In this context, perhaps some have forgotten how useful labor funds can be.

“In periods of great prosperity, in the market, you have a lot of competitors to remain relevant, he underlines. When everyone pulls out of the market, the Fund stays there. When the sea is beautiful, we sometimes forget the usefulness of having a lifeboat in the ship. »