LifeWorks explained

LifeWorks
Type:Public
Key People:Stephen Liptrap, president and chief executive officer
Scott Milligan, executive vice president and chief financial officer
Gillian Denham, chair of the board
Industry:Professional services
Services:Health and Benefits, Administrative Outsourcing, Asset and Risk Management, Retirement and Pensions
Revenue: $722.3 million CAD (2018)[1]
Num Employees:6,000[2]
Fate:Acquired by Telus
Successor:Telus Health
Location:Toronto, Ontario, Canada

LifeWorks, formerly known as Morneau Shepell,[3] [4] was a human resources services and technology company[5] headquartered in Toronto, Ontario, Canada.[6] Established in 1966, LifeWorks served approximately 24,000 clients in North America. Besides North American offices, LifeWorks also had offices outside North America, including Brazil, Australia and the United Kingdom.[7] LifeWorks was a publicly traded company on the Toronto Stock Exchange (TSX: MSI), with market capitalization of $2 billion.[8]

On September 1, 2022, Telus closed its acquisition of LifeWorks for $2.9 billion, and merged the company into Telus Health.[9] [10]

History

In 1966, Frank Morneau founded W. F. Morneau & Associates, an actuarial and benefit consulting firm.[11] The firm expanded to open its first U.S. office in 1987 and it launched its administrative outsourcing practice in 1996.[12]

W.F. Morneau & Associates merged with Sobeco in 1997 to establish Morneau Sobeco, led by Bill Morneau as president and chief executive officer.[13] Morneau Shepell, as it was formerly known, was formed in May 2008 through Morneau Sobeco's acquisition of Shepell-fgi – Canada's largest provider of employee health management and workplace training and education services – from Clairvest Group Inc. for $321.9 million.[14]

In the following years, Morneau Shepell made a number of acquisitions, including SBC Systems Company Inc. (U.S. provider of employee benefits administration systems) in January 2012,[15] Mercer Canada's pension and benefits outsourcing business in November 2012,[16] Ceridian's U.S. health and welfare benefits administration business in August 2015,[17] Montreal-based Solareh (national health and wellness services provider that offers employee assistance programs) in December 2016,[18] Montreal-based Longpré (employee assistance and wellness program provider) in January 2017,[19] LifeWorks (platform focused on EAP, employee engagement, rewards and recognition, and human resources communications) in July 2018,[20] and Mercer’s stand-alone, large market, health and defined benefit pension plan administration business in the United States.[21]

Milestones and acquisitions

Corporate social responsibility

In April 2019, Morneau Shepell published its inaugural corporate social responsibility report. The company implemented a board diversity policy to maintain a minimum of 30 per cent women and 30 per cent men on its board of directors, it joined the 30% Club and it created a diversity and inclusion council in early 2019.[46]

In 2014, Morneau Shepell opened the Morneau Shepell Secondary School for Girls in the Kakuma Refugee Camp, located in northwestern Kenya. In 2016, Morneau Shepell pledged more than $1 million over five years to the school to cover operating costs such as teacher salaries, dorm supplies and security.[47]

Acquisition

On June 16, 2022, Telus announced its intent to acquire LifeWorks and combine the company with its Telus Health division. The $2.9 billion offer included $2.3 billion of outstanding equity at $33 per share, and taking on $600 million in debt.[9] The deal required regulatory and shareholder approval.

On September 1, 2022, Telus completed the acquisition and merged LifeWorks into Telus Health.[10]

Ethics controversy

Bill Morneau, the former finance minister of Canada, resigned from his position as executive chair of Morneau Shepell in October 2015.[48] In October 2017, Mr. Morneau became the subject of intense scrutiny regarding his holdings in the company, including the effectiveness of moving his holdings into a blind trust to assuage any concerns.[49] At the time, there were allegations that Morneau Shepell stood to benefit if a proposed small business taxation legislation was passed.[50] Critics claimed that Morneau Shepell would benefit if the proposed changes prompted more people to use individual pension plans, a claim which Morneau rejected,[51] In December 2017, Morneau Shepell said that individual pension plans account for less than one 25th of one per cent (0.04%) of the firm's revenues.[52]

Mr. Morneau was also criticized for holding shares in Morneau Shepell outside a blind trust, and thus being in a conflict of interest situation with respect to the pension plan changes.[53] In response, Mr. Morneau said that he acted on the recommendation of Conflict of Interest and Ethics Commissioner Mary Dawson, who stated that shares could remain behind a conflict-of-interest screen overseen by the minister's chief of staff, and that a blind trust was not necessary.[54] The Conflict of Interest Act states "that any such assets, irrespective of their value, must be divested by either the establishment of a blind trust or by way of sale at arm's length."[55] Mr. Morneau responded to the controversy by stating that he sold his remaining shares in Morneau Shepell and donated all of the money he's profited as a result of an increase in the value of the shares to charity.

It was reported that Mr. Morneau and his father sold Morneau Shepell shares before the tax change announcement in December 2015, before any potential increase in value would have occurred.[56] Media reports state that Mr. Morneau sold 680,000 shares for proceeds of $10.1 million before December 7, 2015. Subsequently, Mr. Morneau is said to have sold an additional 320,000 shares on December 17, 2015, for a profit of $4.5 million, which he donated to charity.[57] It was later reported that Mr. Morneau's father sold 100,000 shares in Morneau Shepell before the tax change announcement, on November 23, 2015, and 100,000 shares in Morneau Shepell on December 3, 2015.[58]

Leadership

In March 2017, Morneau Shepell announced Alan Torrie's retirement from the company and Stephen Liptrap as his successor to the position of president and chief executive officer, effective May 5, 2017.[59]

Notes and References

  1. https://www.morneaushepell.com/permafiles/91677/annual-report-2018.pdf"
  2. Web site: Company profile - Canadian Company Capabilities: Morneau Shepell Ltd.. 2017-03-23. 2017-08-25. https://web.archive.org/web/20170825023113/http://www.ic.gc.ca/app/ccc/srch/nvgt.do?lang=eng&prtl=1&estblmntNo=123456056837&profile=cmpltPrfl&profileId=501&app=sold. dead.
  3. Web site: Human resources services company Morneau Shepell changes name to LifeWorks - NEWS 1130. 2021-05-17. 2021-05-22. www.citynews1130.com.
  4. Web site: Morneau Shepell is now LifeWorks. 2021-05-22. lifeworks.com. en.
  5. Web site: Morneau Shepell Ltd - Complete profile - Canadian Company Capabilities - Industries and Business - Industry Canada . 2017-03-23 . www.ic.gc.ca . en . 2017-08-25 . https://web.archive.org/web/20170825023113/http://www.ic.gc.ca/app/ccc/srch/nvgt.do?lang=eng&prtl=1&estblmntNo=123456056837&profile=cmpltPrfl&profileId=501&app=sold . dead .
  6. News: Study examines connections between organizational change and health - OHS Canada Magazine. 2017-01-31. OHS Canada Magazine. 2017-03-23. en-US.
  7. Web site: Global Offices. Morneau Shepell. en-ca.
  8. Web site: The Globe and Mail - Stock Quote. The Globe and Mail. en-ca. 2017-03-23.
  9. News: Posadzki . Alexandra . Telus acquires LifeWorks Inc. for $2.9-Billion to boost health subsidiary . live . . https://web.archive.org/web/20230210171907/https://www.theglobeandmail.com/business/article-telus-acquires-lifeworks-inc-for-29-billion-to-boost-health-subsidiary/ . 2023-02-10 . 2023-09-10.
  10. News: Paglinawan . Denise . 2022-09-01 . Telus sees global opportunity in employee wellness as it closes LifeWorks acquisition . live . . https://archive.today/20230910044916/https://financialpost.com/fp-work/telus-closes-2-3b-lifeworks-deal-expanding-health-division . 2023-09-10 . 2023-09-10.
  11. News: A CEO, but not exactly a Bay Street guy: Bill Morneau's path to becoming Canada's finance minister. Financial Post. 2017-03-23. en.
  12. Web site: Morneau Shepell. dmcgrath@hr.com. 2017-03-23. www.hr.com. en. 2017-03-23.
  13. News: Top Forty Under 40. The Globe and Mail. 2017-03-23. en-ca.
  14. Web site: Morneau Sobeco buys Toronto's Shepell-fgi Toronto Star. thestar.com. 13 May 2008 . 2017-03-23.
  15. Web site: Morneau Shepell acquires U.S. benefits administrator. www.benefitscanada.com. en-US. 2017-03-23.
  16. Web site: Morneau acquires Mercer's pension and benefits outsourcing business. www.benefitscanada.com. en-US. 2017-03-23.
  17. Web site: Morneau Shepell completes acquisition of Ceridian division. www.benefitscanada.com. en-US. 2017-03-23.
  18. Web site: Morneau Shepell acquires Montreal-based EAP provider. www.benefitscanada.com. en-US. 2017-03-23.
  19. Web site: Morneau Shepell acquires another Montreal-based EAP provider. www.benefitscanada.com. en-US. 2017-03-23.
  20. Web site: Morneau Shepell Completes Acquisition of LifeWorks Corporation Ltd.. Morneau Shepell. www.prnewswire.com. en. PR Newswire. 2019-09-13.
  21. Web site: Cision.
  22. Web site: Morneau Shepell to buy Mercer's US large market health and DB pension plan admin unit. www.consulting.ca. 7 May 2019 . en. 2019-09-12.
  23. News: Top Forty Under 40. 2019-09-12.
  24. Web site: HR consultancy Morneau Shepell to acquire LifeWorks. www.consulting.ca. 11 July 2018 . en. 2019-09-12.
  25. Web site: Briefly. 2006-04-24. Advisor. en. 2019-09-12.
  26. Web site: Morneau Sobeco buying two Cowan practices. May 15, 2007. Benefits Canada.com.
  27. Web site: Benefits Canada.
  28. News: Morneau Sobeco acquiring Shepell-fgi. 2019-09-12.
  29. Web site: Andrew Kitchen joins Russell Investments as managing director. July 25, 2017. Benefits Canada.com.
  30. Web site: Benefits Canada.
  31. Web site: Benefits Canada.
  32. Web site: Morneau Shepell acquires Mercer Canada's pension and benefits outsourcing business Canadian HR Reporter. www.hrreporter.com. en. 2019-09-12.
  33. Web site: Benefits Canada.
  34. Web site: Morneau Shepell buys Collage Pediatric Therapy. September 3, 2013. Benefits Canada.com.
  35. Web site: Morneau Shepell buying Groupe AST. March 3, 2014. Benefits Canada.com.
  36. Web site: Morneau makes acquisition in the GTA. July 8, 2014. Benefits Canada.com.
  37. Web site: Morneau Shepell to buy Ceridian division. July 22, 2015. Benefits Canada.com.
  38. Web site: Bensinger, DuPont & Associates bought by Canadian employee assistance firm. Elejalde-Ruiz. Alexia. chicagotribune.com. December 2015 . 2019-09-12.
  39. Web site: Benefits Canada.
  40. Web site: Morneau Shepell acquires another Montreal-based EAP provider. January 10, 2017. Benefits Canada.com.
  41. Web site: Morneau Shepell adds to Quebec EAP presence with Pro Health acquisition. November 2, 2017. Benefits Canada.com.
  42. Web site: Chestnut sells EAP division; no jobs will be lost. Paul. Swiech. pantagraph.com. December 2017 .
  43. Web site: Morneau Shepell to acquire EAP, wellness provider LifeWorks. July 10, 2018. Benefits Canada.com.
  44. Web site: Morneau Shepell closes acquisition of some of Mercer's U.S. health, DB businesses. August 7, 2019. Benefits Canada.com.
  45. Web site: Morneau Shepell announces acquisition of MorningStar Health. us.lifeworks.com.
  46. Web site: Morneau Shepell publishes first corporate social responsibility report. April 26, 2019. Benefits Canada.com.
  47. Web site: This Is What It's Like to Go to School in a Refugee Camp. Sarah. Butrymowicz. The Hechinger. Report. January 7, 2019. Marie Claire.
  48. News: Morneau Shepell: We won't make big money off pension bill tabled by Bill Morneau. Global News. 2017-12-14. en.
  49. News: Terence Corcoran: Morneau agrees to a blind trust, but that won't fix the problem. 2017-10-20. Financial Post. 2017-12-14. en-US.
  50. Web site: Morneau's Town Hall Turns Into A Shouting Match. 29 September 2017.
  51. News: Despite conflict-of-interest claims, ethics commissioner not examining Morneau over tax reforms. 2017-10-06. National Post. 2017-12-14. en-US.
  52. News: Should we know what the federal finance minister owns?. Ballingall . Alex . 2017-10-16 . The Toronto Star . 2017-12-14 . 0319-0781.
  53. News: Morneau sells shares in family's pension company . CBC News . 2017-12-01.
  54. News: Under fire, Morneau to sell $21M worth of shares, put assets in blind trust . 2017-10-19 . NEWS 1130 . 2017-12-14 . en-US.
  55. Web site: Federal ethics rules under attack after more Liberal ministers blasted for using investment 'loophole'. 30 October 2017. The Toronto Star.
  56. Web site: Morneau at centre of fiery debate in Commons that leads to Tory MP's ejection . Blatchford . Andy . November 30, 2017 . CBC News.
  57. Web site: John Ivison: Liberals stand by beleaguered Morneau in face of Conservative calls for his head . National Post.
  58. Web site: Bill Morneau's father sold 200K shares in family company days before tax changes announced. David Akin. Global News.
  59. News: Morneau Shepell getting new CEO. Baert. Rick. 2017-03-03. Pensions & Investments. 2017-03-23. en-US.

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