CUPE 38 update, June 6

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    ISSUE 2

    NEGOTIATION UPDATEOfficial Publication of the Canadian Union of Public Employees, Local 38

    14399th Av. SE, Calgary, T2G 0T4, Phone (403)233-2700 Fax (403)290-1757

    [email protected] Website-www.cupe38.org

    June 6 , 2011

    Following our last update, we received a call from both the Citys Negotiator and the Media-tor to inform us that the City has increased its offer to 2% for 2011; 2.5% for 2012 and 3% for 2013.While this shows movement the Citys offer still remains well below the broader Alberta public sec-tor and the Calgary labour market. It still provides us less over the first 2 years than what Counciltook for themselves this year.

    To provide some context as to the settlements in Alberta, Medicine Hat provided its electri-cal workers with a raise of 3% for 2011 and 2012; The City of Lethbridge gave its employees a4.5% increase for 2011 and there are many other citys such as Red Deer, Brooks, and Canmorethat fall within this range. The regulated utility sector, such as ATCO, AltaLink and TransAlta allhave negotiated 3% increases for their employees this year and next. The AltaLink agreement is a3 year agreement which provides a 4% increase in 2013. In light of this, how does City Councilbelieve it is reasonable to offer us less than half of what they have taken for themselves?

    Your Negotiating Committee tabled a proposed two (2) year agreement with the City thatcalled for a 3% raise in both 2011 and 2012 that was subsequently rejected by the City. Your com-

    mittee felt that this is a reasonable offer that also reflected the Citys financial concerns. While thisoffer would place us at the bottom end of the current market, the fact is it still puts us within themarket. Since offer was only two (2) years in duration it took the uncertainty of 2013 out of theequation. A three (3) year agreement causes your committee significant concern since the Calgarylabour market is positioned to take off (as reported by the Provincial Government in both major pa-pers). The Alberta Minister of Labour and economists are reporting the likelihood of a labour short-age by next year and inflation potentially as high as 5%. It is for these reasons that a third yearagreement ought to be above 3% as inflation is already at 3%.

    Your Negotiating Committee needs your support in sending a clear message to the

    City that we deserve a fair and equitable wage increase in line with the Calgary labour market andthe broader public sector. It is only with a strong strike mandate that theCity will be forced to make us a decent offer.