The Carleton University Students’ Association (CUSA) received an extension until Jan. 17 to file their statement of defence in a legal conflict with the Graduate Students’ Association (GSA) over changes to their former joint health plan.
The extension was needed due to CUSA changing lawyers, according to CUSA vice-president (finance) Michael De Luca.
“We just wanted more time to do our research and analysis so we have the strongest defence possible,” he said.
According to the GSA’s statement of claim, CUSA broke agreements with them and their health plan provider Green Shield Canada in July 2012, as well as their health plan broker Morneau Shepell, in order to join Studentcare Networks.
The agreement could only be dissolved through mutual consent or a referendum of either the GSA or CUSA’s members, but executives of CUSA passed a motion which changed the meaning of “referendum” and allowed them to bypass putting the vote to students, according to the GSA’s claim.
GSA president Kelly Black said CUSA terminated their contract in a legally indefensible way, therefore the GSA recognizes their original agreement as in full force and effect.
“We are waiting for their statement of defence and once that’s filed we will be going to court, unless CUSA decides to reinstate the health plan and the agreements that we had,” Black said.
Black said the GSA was not willing to make a decision last summer without more information.
“They asked us to take them at their word and break our existing contracts. That is not something any good organization would do,” he said.
But De Luca said he doesn’t think the GSA has much of a claim against CUSA.
“They didn’t want to switch health plans with us and make this look like it was some miraculous, glorious switch that saved their students money, which is what it is,” De Luca said.
Black said the GSA was provided with minimal information about CUSA’s health plan in the summer, except that it is a five-year agreement with rates guaranteed for two years.
“So what happens in years three, four, and five? It could go up,” he said.
De Luca said CUSA’s health plan broker will have to go back to market after the first two years of the plan are up, but that he is sure they can find a rate that is equally competitive.
According to him, a portion of the savings they’ve made by switching to the new health plan go into a reserve fund and will protect students from paying higher fees if rates go up in the future.
