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© Copyright 2000 Rogers Media. The following article first appeared in the November 2000 edition of
BENEFITS CANADA magazine.
Progressive paternalism
There's nothing wrong with taking care of plan members. It's what they want.
Former Prime Minister Pierre Elliott Trudeau's passing in September felt like a last look back at this
country's era of big government. At the time, many of us were in Victoria attending a terrific conference
organized by the Western region of the Canadian Pension and Benefits Institute. Its theme, "Charting a New
Tomorrow," offered a stark contrast to remembrances of Trudeau's time.
While politicians and Ottawa watchers filled the airwaves and newspapers with fond memories of strong
central governments, delegates in Victoria went about mapping the exciting new relationship between
Canadian employers and employees.
The declining relationship between Canadians and government, largely a result of the fiscal
shortsightedness of leaders like Trudeau, has created a compelling need for stronger ties between employees
and employers.
The challenge for sponsors of benefits and pension plans is to accept that this relationship is
fundamentally paternalistic in nature.
That runs contrary to an assumption held widely in our industry--that paternalism is on the decline. The
rise of defined contribution pensions and flexible benefits are regularly held up as proof of that point.
It is a miscalculation. As Canadians come to find more and more holes in the government-woven safety net,
they are looking to employers for support.
That employers will fill these gaps is a perfectly natural assumption. The employer/employee bond has
always been paternalistic in nature. Their exchange of labour for the compensation you provide addresses
their most basic needs. How could they see you in any other light?
The challenge for employers is not to reorient this perspective, but rather to address the lack of
independence that sometimes emerges as an unhealthy side-effect of an otherwise appropriate
employer/employee bond.
A more progressive paternalism is a realistic and worthwhile goal.
That means better communication. As a plan sponsor, it is your role to educate members, for example, about
the financial pressures faced by so many benefits plans and to explain why you are considering a switch to
a flexible benefits strategy.
Progressive paternalism means empowering plan members to make the right retirement planning choices. Teach
them, for example, in detail what the various investment options available in your defined contribution
pension plan provide them.
Progressive paternalism also means giving people a sense of control of their own working lives. What is a
casual dress policy, for example, other than a flexible dress plan?
This at once answers the needs of plan members and the pressures of responsible management. It is a
strategy that will attract and retain.
Pierre Trudeau believed in an active federal government that helped make possible citizens' hopes and
dreams.
Now Canadians look to employers for the same support. Some plan sponsors will consider that a threat,
others will see it as an opportunity.
Plan members will be able to tell the difference.
--Kevin Press
kpress@rmpublishing.com
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