In the 1980s, Québec fell into a very deep recession that left nearly 25% of its youth unable to find jobs and more than 14% of the labour force unemployed. Sky-high interest rates forced many small and mid-sized businesses to close their doors.
In an effort to help their employers and save their jobs, workers invested their own money directly in their companies. But it was too little, too late. The businesses still went under and the workers not only lost their jobs but their savings as well.
In April 1982, Premier René Lévesque issued a call for solidarity during an emergency socio-economic summit convened in Québec City by the government.
Aware of the harsh reality, the Québec Federation of Labour (QFL) wanted to do its part. Action had to be taken, a form of action where the risk would be shared. Thus, Louis Laberge, president of the QFL - Québec’s largest labour body - suggested that in light of the layoffs and business closures, its members should adopt a new labour policy. “We must respond to this crisis, which is making it impossible to maintain and create jobs and which is affecting our members and Québec society. If we don’t, then what is the point of unions?”
The suggestion that was ultimately adopted was to create a solidarity investment fund controlled by the QFL that would invest venture and development capital in Québec SMEs. Professionals from the Société de développement des coopératives and officers from the QFL then proceeded to define the project. The Québec government endorsed the plan by promising to grant future shareholders of this investment fund attractive tax breaks, and the federal government did the same shortly after.
On March 3, 1983, the QFL announced the creation of the Solidarity Fund QFL, a first in the annals of the labour world.
QFL general secretary Fernand Daoust described the Solidarity Fund QFL as “a collective enterprise inspired by broad-based interest,” and “genuine social and economic innovation.”
Organized by the members of the QFL, the first subscription campaign collected upwards of $500,000 in just three weeks. Afterwards, the Fund set up a tremendous network of local representatives, knows as LRs for short, charged with spreading the word about the Fund’s advantages to their unionized co-workers.
To this day a unique institution, the Fund developed effective tools to support and help grow the Québec economy. More than ever before, the Fund makes an important contribution to Québec society by forging strategic alliances and partnership agreements with the largest players in the local economy.
The Fund’s mission revolves around four key aspects:
· Invest in businesses impacting the Québec economy and offer them services to further their development and create, maintain and protect local jobs;
· Promote economic training for workers so they can increase their influence on the economic development of Québec;
· Stimulate the Québec economy through strategic investments that benefit Québec workers and companies alike;
· Make workers aware of the need to save for retirement and encourage them to do so, as well as encourage them to participate in the development of the economy by purchasing Fund shares.
While fulfilling this mission, the Fund seeks to grow its shareholders’ savings and provide them with a fair return.
By leveraging the strength of its vast network of over 2,000 partner companies across Québec and the solidarity of its 571,000 shareholders, the Fund continues to play a key role on Québec’s employment and economic development fronts.