In June 2024, the Quebec government introduced a major piece of legislation outlining its vision for the future of electricity services in the province. Bill 69 has raised concerns, particularly because it paves the way for private projects in electricity production and transmission, challenging the Quebec model that has been in place since 1963. CUPE is actively participating in the parliamentary hearings on Bill 69.
At the beginning of the year, CUPE locals at Hydro-Québec launched a public campaign warning against any plans to privatize the crown corporation and public electricity services. The large-scale campaign was featured on television, online, and on giant billboards throughout Montreal and Quebec City.
“Public electricity services are a major driver of socioeconomic development. They allow us to control electricity prices while also having a say on regional economic development. In addition, Hydro-Québec contributes significantly to our communities, helping to fund health care and education,” says Patrick Gloutney, CUPE’s general vice-president for Quebec.
CUPE members are concerned that the bill, introduced by former Minister of Economy, Innovation and Energy Pierre Fitzgibbon, will harm Quebec society. They point out that the government was not elected to dismantle the Quebec model.
“Our collective asset is being squandered bit by bit. Hydro-Québec’s mission has been distorted by the reintegration of private interests into the energy sector, and Quebecers will not emerge from this unscathed,” warns Patrick Gloutney. “All around the world, privatization of electricity services, whether in production or distribution, has led to higher residential rates, inequitable distribution of private company profits, and diminished access to electricity. Electricity produced by private companies will cost Hydro-Québec more, which will be passed directly to customers, all of us Quebecers.”
A symposium and a petition
Faced with the Quebec government’s determination to open more of the energy sector to private interests, CUPE Quebec organized a symposium on March 14, 2024, attended by hundreds of members. Several experts spoke about the potential consequences of the government’s priorities. It was also an opportunity to present new data and research in support of maintaining public electricity services.
“In short, the experts confirm that the government is selling off our energy capacity at bargain prices without having made any serious plans for the sector. The ideological fixation of the Legault government on benefiting private sector players is draining money from public resources that are crucial for our public services,” explains Pierre-Guy Sylvestre, an economist at CUPE Quebec.
There is no evidence to suggest that the private sector is more economically efficient than the public sector when it comes to providing public services. Whether it is water management, electricity services, or even waste collection, privatization has not been shown to lower costs or improve service quality. In fact, the opposite is often true. In water management, privatizing water services has led to decreased quality because companies have little incentive to invest in infrastructure, which also drives up costs. For electricity services, price hikes have been observed following privatization in the industry.
Hydro-Québec workers are urging the public concerned by the Quebec government’s decisions to send a letter to elected officials and oppose the push to privatize public electricity services.
“We need to take a stand against a bill that does nothing to advance the energy transition. Instead, it allows private companies to seize control of Quebec’s exceptional economic potential in wind and hydroelectric power. The cost of letting private companies profit from business opportunities derived from our natural resources is enormous, and it would be irresponsible to let the current government continue down this path of economic and political decisions, which will benefit only a few at the expense of millions of people,” says Pierre-Guy Sylvestre.
Privatization a major barrier to racial justice
The growing push by governments and corporations to privatize public services is harming Indigenous, Black and racialized workers and their communities. CUPE’s research report entitled The Colour of Privatization shows how for-profit services worsen racial and economic inequity for groups who are already disadvantaged because of past and ongoing injustices.
The Colour of Privatization shares the stories of Indigenous, Black and racialized CUPE members working in public services such as the energy sector. Corporations and their shareholders profit when public services are privatized. The report shows how these profits come at the direct expense of Black, Indigenous and racialized workers who work in contracted-out services, or who depend on these services.
The Colour of Privatization shows that privatization drives down wages, erodes working conditions and shreds quality public services. The report calls on governments at all levels to walk their talk about racial and gender equity by protecting workers and their communities from the consequences of privatization.
Read The Colour of Privatization report or order printed copies
