CUPW’s New Proposal and Management’s Response

As reported in the June 3, 2011 Negotiations Alert, we met with CPC management on June 3^rd and provided our response to their most recent proposal.

The Union’s response contained some very important moves with respect to pensions and wages.

Pension

The union has maintained its position that all postal workers should have the same pension plan and enjoy the same benefits. We know that if we accepted CPC’s proposal to eliminate early retirement for new hires, it would only be a matter of time before management would try and reduce the early retirement provisions for all current employees. To safeguard the pension for all CUPW members we have made the following proposal:

• The pension benefits must be included in the collective agreement;

• In the event of a future pension surplus, following the repayment of any special payments previously made by CPC, all surplus funds attributable to CUPW members must be used to improve benefits for CUPW members;

• Over the next ten years the proportion of employee contributions shall increase from 40% of current service contributions to 50%. In 2012, the increase would amount to $3.13 per bi-weekly pay. After 10 years, this would result in an increase in contributions of $31.25 per bi-weekly pay. (This amount is tax deductible and based on current average wage rates.)

Wages

The union maintained its position that all postal workers must reach the same maximum hourly wages. To encourage CPC to conclude a collective agreement that fully meets the needs of postal workers, we have submitted the following proposal:

• We have maintained our demand for a wage increase of 3.3% in the first year and 2.75% in each of the following three years. For Groups 1 and 2, the wage increases are based on the PO5 maximum rate. For groups 3 and 4, the wage increases are based on a MAM 11 maximum rate;

• A cost of living allowance (COLA) that provides full protection of our wages;

• Reclassification of all Group 1 workers to PO5s with a PO5 wage rate;

• For Groups 1 and 2, increments based on five years of service. This is an increase of increments for Group 1;

• A wage scale which begins at the current minimum rate of Group 2 of $23.11 per hour, and gradually establishes a 10% differential between the minimum and maximum rates. This is an increase in the differential. Currently there is a 1.8 % differential for Group 1 workers (postal clerks) and 4.5 % for Group 2.

Management’s Response

We have received no counter-offer from management. Instead, the response of management has been to attack the integrity of the union’s leadership. Despite the fact that the union explained that we believe we have the legal right to negotiate the contribution rates of the pension, we were accused by CPC of trying to trick them. They stated that our proposal amounted to nothing. When asked if, in the event they were correct and there was a legal obstacle, they would agree to approaching the government to request a legislative change, they refused to answer. They were also completely dismissive of our wage proposal.

Media Stunt or Negotiations?

Management has yet to make a counter-offer to our proposal. Given their aggressive attitude at the bargaining table, it may be that they are preparing yet another media stunt instead of real negotiations. We shall see.