BARGAINING UPDATE As presented on April 22, 2015

BARGAINING UPDATEAs presented on April 22, 2015

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CAVEAT

This slideshow, presented to different union decision-making bodies as of April 22, 2015, seeks to make it easier for people to understand the Common Front’s bargaining proposals, as well as the state of negotiations in the public sector, on the day that it is presented. It does seek to be an exhaustive analysis of all the issues and challenges involved in this negotiation. The Common Front’s position, as is the case of the economic, political and social situation and any analysis that one might make of the foregoing, is obviously subject to change in the future.

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THE COMMON FRONT IS MADE UP OF:

Three organizations:

• The Secrétariat intersyndical des services publics (SISP, which groups together the CSQ, SFPQ and APTS)

• The CSN

• The FTQ

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THE COMMON FRONT COVERS:

• Some 400,000 people out of 530,000 public sector employees;

• Workers in the health and social services sectors, the public service, the school commissions, CEGEPs and government agencies;

• More than 650 job classifications.

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THE COMMON FRONT’S GOAL:TO ENSURE THE LONGEVITY AND SURVIVAL OF OUR PUBLIC SERVICES

With the deterioration of the quality of the jobs in the public and parapublic sectors, the quality of services and its capacity to attract and retain the workforce have become jeopardized. It thus becomes essential to:

•Improve the elements making up people’s remuneration (prioritizing salaries);

•Improve working conditions (reduce job insecurity, put a stop to the erosion of professional autonomy, improve the measures needed to foster family-work education balance, stop subcontracting and privatization).

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THE TREASURY BOARD’S GOAL:AUSTERITY TO CONTROL PUBLIC EXPENSES

The Treasury Board, as of the publication of its budget plan in June 2014, announced the principles that would guide it in the current round of bargaining:

“The increase in total remuneration will have to take into account the slow growth of program expenditures […] until a balanced budget returns.

Salary increases could be improved to the extent that efficiency gains in the delivery of public services would be achieved. For example, such gains could be measured by the size of the workforce.

The agreements will have to take into account […] the taxpayers’ capacity to pay.”

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WE’VE HEARD THAT SONG BEFORE…

• One must manoeuvre while being fully aware of the capacity to pay in the difficult context of getting back to a balanced budget. –

Monique Gagnon-Tremblay, march 2010

• The money quite simply isn’t there […] Quebec citizens’ capacity to pay still remains limited. – Jean Charest, septembre 2005

• I don’t have a little piggy bank. – Monique Jérôme Forget, february 2005

• Accepting the Union’s proposals would aggravate the economic and financial situation of the Province of Quebec and would prevent us from providing Quebeckers with the income tax reductions they so sorely need […]. – Lucien Bouchard, april 1999

• Getting things back on track will above all require an examination of program expenditures, new budget cuts and the signing of collective agreements in the public sector that reflect the state of public finances. – Gérard-D. Lévesque, march 1986

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STATE OF THE SITUATION

• The Common Front tabled its bargaining proposals on October 30, 2014.

• The Treasury Board presented its offers on December 15, 2014.

• As of April 17, seven bargaining sessions have taken place, where the parties have been able to share their perspectives and present their arguments.

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SALARY INCREASES:COMMON FRONT’S OBJECTIVE

To put an end to impoverishment and the 7.6% disparity in the total remuneration of government employees vis-à-vis other Quebec workers, as has been noted by the Institut de la statistique du Québec.

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SALARY INCREASES:COMMON FRONT BARGAINING PROPOSALS

A three-year collective agreement with the following salary increases:

April 1, 2015: 4.5%

April 1, 2016: 4.5%

April 1, 2017: 4.5%

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SALARY INCREASES:COMMON FRONT BARGAINING PROPOSALS (CONTINUED)

• 2% per year to rectify salary disparity (and an increase at the end of the agreement to eliminate the remaining disparity);

• 2% per year to maintain salary parity and to protect ourselves against increases in the cost of living (and an additional increase, if inflation is greater than 2%);

• 0.5% as a fixed amount to benefit from collective enrichment (and an additional increase, if real GDP growth is greater than 1%).

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SALARY INCREASES:COMMON FRONT BARGAINING PROPOSALS (CONTINUED)

• That the salary increases be applied to everyone on the same date: • Correct the discrimination affecting CEGEP

teachers whose salary increases apply two months after all other public sector employees.

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SALARY INCREASES: TREASURY BOARD OFFERS

A five-year collective agreement with the following salary increases:

April 1, 2015: 0.0%

April 1, 2016: 0.0%

April 1, 2017: 1.0%

April 1, 2018: 1.0%

April 1, 2019: 1.0%

Date for the salary increases to take effect:The Treasury Board maintains the discrimination affecting CEGEP teachers.

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THE TREASURY BOARD PROPOSES TO IMPOVERISH PUBLIC SECTOR EMPLOYEES:

-10% FROM 1989 TO 2015 AND -7% FROM 2015 TO 2020

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THE TREASURY BOARD PROPOSES TO DOUBLE THE SALARY DISPARITY BORNE BY THE PUBLIC SECTOR

Over the past 10 years, the private sector has enjoyed average salary increases of 2.3% per year.

By proposing a 3% increase over 5 years, the Treasury Board will expand the salary disparity from 7.6% to nearly 15%.

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THE PENSION PLAN:THE COMMON FRONT IS PROPOSING THE STATUS QUO

• Significant modifications were made in 2010,

notably to stabilize the contribution rate;

• The costs of the plan are already shared 50/50

by the parties;

• Capitalized at 98.4%, the RREGOP is in

excellent financial health: it is fully capable of

fulfilling its current and future commitments.

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RREGOP: TREASURY BOARD OFFERS

As of January 1, 2017:

• Postpone the age of retirement without any actuarial penalty from 60 to 62 years old;

• Increase the actuarial penalty for an early retirement from 4% to 7.2% per year;

• Calculations for annuity payment purposes will be done on the basis of one’s 8 best years, rather than one’s 5 best years.

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RREGOP: TREASURY BOARD OFFERS (CONTINUED)

• The Treasury Board wishes to introduce a mechanism that would automatically adjust the eligibility age for retirement upwards, based upon increases in peoples’ life expectancy.

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EXAMPLE OF LOUISE:

An employee who retires after 35 years of service, regardless of her age. At the present time, her pension is calculated on her 5 best years.

Annual salary prior to retirement

43 254 $44 119 $45 002 $45 227 $45 566 $46 249 $47 059 $48 000 $

$46,420 x 35 years x 2% = $32,494 pension annuity when she retires.

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EXAMPLE OF LOUISE: (CONTINUED)

Under management’s demands, the calculation of the pension would be done on her 8 best years.

Annual salary prior to retirement

43 254 $44 119 $45 002 $45 227 $45 566 $46 249 $47 059 $48 000 $


This represents $602 less than when using the current calculation formula.

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EXAMPLE OF JOHANNE:

An employee who retires at age 58. She has 28 years of service. She is not yet 60 years old and doesn’t have 35 years of service either.

Annual salary before she retires

43 254 $44 119 $45 002 $45 227 $45 566 $46 249 $47 059 $48 000 $


One must subtract a “penalty” of 4% per year owing to her early retirement. 8% of the total is deducted, because she still has 2 years to go before she turns 60.

$25,995 - 8% = $23,915 pension annuity.

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EXAMPLE OF JOHANNE: (CONTINUED)

In the management demands, the age of retirement without any penalty would jump to 62 years old. The penalty would be 7.2% per year of early retirement.

43 254 $44 119 $45 002 $45 227 $45 566 $46 249 $47 059 $48 000 $

$45,560 x 28 years x 2% = $25,514 pension annuity when she retires. One must subtract a “penalty” of 7.2% per year owing to her early retirement. 28.8% of the total is thus deducted, because she still has 4 years to go before she turns 62. $25,514 - 28.8% = $18,166 pension annuity. This represents $5,749 less than under the current calculation formula, namely, a 24% cut in her pension annuity.

Annual salary before she retires

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RREGOP: STATE OF THE DISCUSSIONS

• The Treasury Board negotiators acknowledge that defined benefit plans, such as the RREGOP, constitute the best way to ensure retirement income;

• They likewise recognize that the RREGOP is in very good financial health, given that its capitalization rate is almost 100%;

• Nonetheless, according to the Treasury Board, the survival of the RREGOP must be ensured.

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RREGOP: STATE OF THE DISCUSSIONS

• For its part, the Common Front has argued that the measures proposed by the Treasury Board would all have the same effect: impoverish public sector retirees;

• These measures do not ensure the longevity and survival of the plan over the long run;

• The Common Front believes that the Treasury Board’s goal is simply to reduce its financial commitments by impoverishing retirees;

• The risk of an exodus and a loss of expertise between now and 2017 is very real.

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RREGOP: IMPORTANT

Amongst other things:

•The new rules would apply in the case of a phased retirement already under way and where the last day

worked would take place after January 1, 2017.

Warning •Please be very careful about making any hasty decisions.

•These are management demands, not the results of the collective bargaining process.

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PREMIUMS AND ALLOWANCES:THE COMMON FRONT IS ASKING THAT:

• Salary parameters apply to premiums as a fixed amount;

• That the amounts set out in the letters of agreement regarding severe behavioural disorders (SBD), attraction and retention mechanisms in the Far North region and for employees working with CHSLD residents be integrated into the collective agreements.

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PREMIUMS AND ALLOWANCES: TREASURY BOARD OFFERS

• Increase the premiums expressed as fixed amounts on the same date and by the same percentage as the salary parameters;

• No response to the other Common Front bargaining proposals related to premiums and allowances.

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PARENTAL RIGHTS: COMMON FRONT BARGAINING PROPOSALS

• Although there is always room for improvement with regard to parental rights, we opted to not table any demands during this round of bargaining, in view of the substantial modifications that were made during the last two rounds.

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PARENTAL RIGHTS:TREASURY BOARD OFFERS

• Attack the people who are contingent, part-time or seasonal employees, by proposing to have the calculation of maternity, paternity or adoption benefits done on the 20 previous calendar weeks (whether the employee was remunerated or not) and no longer on the 20 previous weeks where the employee was remunerated.

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REGIONAL DISPARITIES:COMMON FRONT BARGAINING PROPOSALS • An increase of 6.5% per year (2015, 2016 and 2017) to the

isolation and remoteness premium;

• For any employee who shoulders a fiscal burden when

receiving a payment or a reimbursement for outing expenses

that they incur, that the impact of taxing such benefits related

to working in remote areas be eliminated;

• That the localities of Kuujjaq, Kuujjuarapik and

Whapmagoostui be integrated into sector IV;

• That the City of Fermont be included in the localities covered

by the dependent child clause pertaining to post-secondary

education.

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REGIONAL DISPARITIES:TREASURY BOARD OFFERS

• Abolish the 8% retention premium applicable to employees working in the cities of Sept-Îles, Port-Cartier, Gallix and Rivière-Pentecôte;

• Undertake exploratory discussions on the definition of the sectors in the regional disparities plan, it being understood that any additional amounts that would be required, where applicable, would be financed by reconfiguring the sectors.

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WORK ORGANIZATION AND QUALITY OF LIFE AT WORK:COMMON FRONT BARGAINING PROPOSALS • Reduce job insecurity;

• Put an end to subcontracting, the recourse to employment agencies and to the privatization of public services;

• Implement practical solutions to the erosion of the professional autonomy of public sector employees;

• Improve the measures pertaining to balancing family-work-education.

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WORK ORGANIZATION AND QUALITY OF LIFE AT WORK:TREASURY BOARD OFFERS

• The proposals tabled by the Treasury Board are silent on these four issues.

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WORK ORGANIZATION AND QUALITY OF LIFE AT WORK:STATE OF THE SITUATION

The Common Front has reiterated to the Treasury Board that it is imperative that the parties keep track, at the central bargaining table, of the sector-based negotiations on this matter, in order to avoid impasses and to identify the mandates and resources that must be established.

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SKILLED WORKERS

• The parties at the bargaining table have resumed discussions on the problems of attracting and retaining skilled workers, based upon the task force reports;

• The Common Front has reiterated its demands: they are laid out in the union recommendations of the Task Force’s final report, tabled in 2013;

• The question today is whether the Treasury Board is prepared to make the salary adjustments that are necessary.

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SALARY RELATIVITY

• The Treasury Board wants to first settle the complaints from 2010 with regard to pay equity and agree upon maintaining pay equity in 2015 before approaching the work dealing with salary relativity;

• The Common Front is asking that the evaluation of the mixed categories be completed and that discussions begin with regard to the salary adjustments that will be necessary;

• The Common Front reminded their vis-à-vis that the complaints are not a subject of collective bargaining given that they arise out of the Pay Equity Act.

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OFFERS FROM BYGONE DAYS…

“After taking cognizance of the offers presented yesterday by the Minister, one gets the impression that the Government would like to turn back the clock a half century, to a sanctified time where the tasks of nursing and school mistress were jobs for women who had chosen to serve the Lord with the promise of just rewards in the hereafter for all eternity.”

Jean-Robert Sansfaçon, One’s reward is in heaven, Editorial in Le Devoir, December 16, 2014.

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RESOLUTION

In view of the various legislative constraints that govern the legal exercise of the right to strike;

In view of the strategic framework into which we have put the present round of bargaining;

Be it resolved:

•That the general meeting mandate the Union to work at planning for a general strike, as a Common Front, to take place in the fall 2015;

•That a general meeting be called as quickly as possible when the summer vacation period is over, in order to acquire a strike mandate in light of the progress of our negotiations.

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TIME LINE FOR ACQUIRINGTHE RIGHT TO STRIKE

minimum 90 days

minimum 60 days

minimum 20 days

7 days

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1. Transmission of a list of essential services to the employer by the Union- (at least 90 days prior to exercising the right to strike)


minimum 90 days

minimum 60 days

minimum 20 days

7 days

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2. Appointment of a mediator upon the request of one of the parties- (expiry of a minimum 60-day period prior to the receipt of the

mediator's report).


minimum 90 days

minimum 60 days

minimum 20 days

7 days

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3. Receipt of the mediator's report and notice to the Minister of Labour- (a minimum of 20 days must pass after the receipt of the report

by the Minister before the right to strike can be acquired)


minimum 90 days

minimum 60 days

minimum 20 days

7 days

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4. Notice to the Minister of Labour, the employer and the Essential Services Commission- (a 7 clear day period for giving notice)


minimum 90 days

minimum 60 days

minimum 20 days

7 days

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5. Exercise of the right to strike


minimum 90 days

minimum 60 days

minimum 20 days

7 days

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minimum 90 days

minimum 60 days

minimum 20 days

7 days

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OUTILS À VENIR :

• A 10-minute video summarizing the contradictory debate held on March 31;

• Other videos on what took place on this day;

• Interactive Internet presentation on exercising a strike in the public sector;

• Print material on the right to strike in the public sector;

• “Frequently asked questions (FAQs)” document for use in the general meetings.

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RESOLUTION

It is proposed that increasing the means of action up to a possible legal strike amongst the Common Front this coming fall should be discussed with members by the CGN planned on June 3rd and 4th.

Documents

BARGAINING UPDATE As presented on April 22, 2015