A high-ranking union official who was removed from her position has launched a lawsuit against the Public Service Alliance of Canada (PSAC), alleging the union stripped her of power to prevent her from exposing significant financial misconduct, including an unapproved pay scheme for staff.
Trusteeship Imposed Days Before Whistleblowing
Alisha Kang, the former national president of the Union of National Employees (UNE), a component of PSAC, filed documents in Ontario Superior Court this week. The documents state she was effectively sidelined less than two months ago. Kang claims PSAC's board placed UNE under trusteeship on October 24, just four days before she was scheduled to present audited financial statements for 2023 alongside external auditors to the union's board.
According to the court filings, that presentation would have revealed irregularities that "affected all of PSAC's activities and its components." Kang alleges the disclosure could have had a "devastating effect" on the careers of PSAC President Sharon DeSousa and other senior union leaders.
Allegations of a "Spurious" Pay Scheme
The core of the alleged financial misconduct involves the Alliance Employees' Union (AEU), which represents UNE staff, and the former national executive of UNE. The court documents describe a scheme where the AEU would file "spurious or artificially substantiated" classification grievances on behalf of union staff.
These grievances were then allegedly settled informally by awarding "general damages for human rights." This process, Kang claims, allowed union staff to receive extra compensation without the required approval from the broader membership. Furthermore, the lawsuit alleges this method was used to avoid standard taxes and certain payroll deductions.
Internal Review and Reported Restitution
Kang's lawsuit states she conducted a review of UNE's financial operations after becoming president. In March of this year, she wrote to AEU president Louis Bisson expressing her "deep discomfort" with the pay arrangement.
The court documents reveal that approximately two months later, UNE self-reported the issue to the Canada Revenue Agency and made a restitution payment of $69,000. Employees involved were disciplined, and the matter was reported to the Ottawa Police.
However, Kang's legal action contends that her efforts to address the problems and present the full audited findings were cut short by the trusteeship. In an October 24 press release, PSAC justified taking control of UNE by citing concerns from members about the "level of representation and support," alongside issues with financial practices, accountability, high staff turnover, and complaints about Kang and other executives.
Neither PSAC President Sharon DeSousa, who defeated Kang in the 2024 election for the top position, nor Alisha Kang, who had vowed to run again, could be reached for comment late Wednesday. The lawsuit sets the stage for a public legal battle over transparency and governance within Canada's largest public service union.
