Innovative Practices in Collective Agreements

Suzanne Payette, MBA, CHRP
Workplace Information Directorate
Human Resources and Skills Development Canada
Summer 2005

Slide 1 contains the above information (cover page)

Slide 2

Collective Bargaining Information

Workplace Information Directorate

• tracks, codes, analyzes and reports
• wage and non-wage provisions
• large bargaining units
  • 100 workers (federal jurisdiction)
  • 500 workers (provincial jurisdictions)

Negotech - Electronic database of collective agreements and settlement summaries

Slide 3

The Context 1995-2005

• Competitiveness
• Restructuring at industry and global levels
• Technological advances (Internet)
• Deregulation (Communications)
• Mergers and acquisitions
• Work-life balance
• Diversity in the workplace
• Aging workforce

Slide 4

Economy 1995 - 2005

• Wage settlements
• Work stoppages
• Inflation
• Economic indicators

Slide 5

Index for Public and Private Sectors Wage Adjustments and CPI, 1990–2004

Source: Workplace Information Directorate, Human Resources and Skills Development Canada and Statistics Canada.

Slide 6

Person-Days Not Worked, as a Percentage of Estimated Total Working Time, 1965–2004

Source: Workplace Information Directorate, Human Resources and Skills Development Canada and Statistics Canada.

Slide 7

Types of Innovations

• Industrial relations
• Organization of work
• Compensation and working conditions
• Work-life balance
• Training and development
• Labour-management committees

Slide 8

Industrial Relations

Practices that alter relationships and processes between labour and management

• Interest based negotiation
• Coalition bargaining
• Continuous bargaining
• Expedited arbitration
• Grievance mediation
• Pre-collective agreement bargaining

Slide 9

Long-term Agreements

• The analysis demonstrates that it is in the private sector, more specifically, the manufacturing sector, pulp and paper, that the duration of collective agreements are longer, followed by the food retail sector
• 25-year agreement with Cancrew (Hibernia) and Fish, Food and Allied Workers Union. Agreement is automatically renewed unless notice of 60 days is given

Slide 10

Average Duration in Months of Agreements in Force, 1993–2004

Source: Workplace Information Directorate, Human Resources and Skills Development Canada and Statistics Canada.

Slide 11

Market–Based Review of Wages

Alcan and Communications, Energy and Paper Workers Union of Canada

• For the last two years of the agreement
• The adjustment will be determined on the basis of a wage survey of 12 major companies and if Alcan’s wage position, including the 1% guarantee differs from the general market by more than 3%, employees will receive 50% of the difference in the form of quarterly lump-sum payments

Slide 12

Organization of Work

• Operational flexibility
• Contracting-out / Contracting-in
• Mutual assistance
• Broadening of job classifications
• Work teams / Modular production
• Delayering
• Distribution of work among workers

Slide 13

Organization of Work - Operating Flexibility

Weldwood of Canada (Hinton) and CEP

• various work practices to improve productivity, product quality, reduce down time and lower costs
• all employees will safely utilize their existing skills to maximize productivity
• learn and use new skills to enhance effectiveness
• job guarantees
• wage guarantees

Slide 14

Organization of Work - Teams

Molson Breweries and Teamsters

• Work is organized in teams of warehouse, shipping and garage operations
• Team leader premium of $15 per week
• Multi-skill premiums to encourage and foster multi-skilling in client service activities ($4/day) and for brewing operations ($0.50 per hour)

Slide 15

Flexibility

Crown Packaging (BC) and CEP

• Flexible work practices, taking into account training, safety, work tools and skills
• In maintenance, multi-skilling among trades
• Multi-skilling premium of $.95/hr
• Operations encouraged to resolve maintenance problems without trades and a $.40/hr premium

Slide 16

Contracting-out and Contracting-in

John Deere and CAW

• In-house paint unit in lieu of contracting-out

INCO Limited and USW

• Joint efforts to reduce contracting-out and its related costs and encourage in-house operations

Slide 17

Compensation

• Variable pay
• Follows the trend of Canadian organizations
  • Conference Board of Canada: 86%
  • Canadian section Worldatwork: 71%

Slide 18

Types of Variable Pay

Individual or Group-based

According to the Conference Board of Canada

• Cash bonus/incentive plans (88%)
• Profit-sharing (21%)
• Team-based (13%)
• Lump-sum payments (7%)
• Gain sharing (9%)

Slide 19

Gain Sharing Plan

Enbridge Consumers Gas

• Target of 2.5 %
• Eligible employees can receive up to 3.75 % of base pay

Slide 20

Gain Sharing Plan

Canadian Pacific and Steelworkers and other unions

• Employees will share 40% of the productivity gains achieved in each year of the contract for 2003, 2004, and 2005, up to 5 % of salaries
• Lump-sum payments generated will be included in the calculation of retirement benefit provisions

Slide 21

Individual and Collective Contribution

Bell Canada and Canadian Telecommunication Employees

• Sales bonus plan
• If sales objective are met at 100%, payments will be 20, 25 and 30% in 2004, 2005 and 2006

Slide 22

Corporate Team Incentive Plan

Canada Post and various unions

• Incentive potential of 3% based on meeting each of the corporate performance targets:
  • financial performance at 1.2%
  • performance Pay at 0.9%
  • client satisfaction at 0.9%
• Part-time eligibility based on prorated hours

Slide 23

Employee Bonus Plan

BC Rail and CAW and other unions

• Employees are eligible to a bonus of 1% of salary if operating revenue of BC Rail reaches $68,322,000, and 2% if revenue reaches $74,787,780 and 3% if revenue reaches $81,243,558

AllStream and CAW

• Bonus of 4% of salary based on corporate performance and client satisfaction

Slide 24

Collective Bonus and Work teams

La-Z-Boy and Communication Workers of America

• Employees will have the opportunity to work in production teams
• To encourage teams, employees will receive a bonus calculated on the level 5 base rate but, will have a guarantee of 150% of their salary base rate or the average rate, while they participate in the training / trial period

Slide 25

Investment Incentive

Kimberly Clark Forest Products and various unions

• The employer will contribute a maximum amount of 5% of regular revenue as either 75% of the first 2% of salary or 50% of the first 3% of salary following employee contribution

Slide 26

Aging Workforce

University of Alberta and various associations

• Provision for a reduction in workload for pre retirement. This program allows an employee the opportunity to work part-time for the two last years before retirement or implement 2/3 of the workload over 3 years or 3/4 of the workload over four years prior to retirement
• Pension contributions and benefits remain unchanged

Slide 27

Employee Assistance Pilot Program

OC Transpo and Amalgamated Transit Union

• A pilot program for employee assistance to help employees access competent / skilled co-workers to deal with work related issues
• The joint training program will involve 15 unionized employees, trained in the area of conflict resolution, employee assistance and anti-harassment and anti-discrimination

Slide 28

Health Management Spending Account

Government of Manitoba and MGEU

• A new Health Management Spending Account was created. This individual account will offer the reimbursement of supplemental medical expenses to employees, up to $120 in 2005 and $200 in 2006

Slide 29

Health Management Spending Account for Retirees

Hydro Manitoba and IBEW

• The individual account will initially be limited to $350, per year and indexed at 2.5%

Slide 30

Joint Committee on Leadership Improvement

Crown Packaging and CUPE

• Committee will develop strategy to improve safety, productivity, quality and working conditions
• Representatives from each party will receive training to acquire interpersonal and problem solving skills

Slide 31

Job Opportunities Joint Committee

Norske Canada and CEP

• Employment security in the pulp and paper industry is linked to economically viable activities, a high level of productivity, high levels of quality production, the parties will examine ways of improving job opportunities including new work arrangements, decreased overtime and new scheduling arrangements

Slide 32

Joint Committee for Resolving Non-monetary Issues

Atomic Energy of Canada and Society of Professional Engineers

• This committee was set up to resolve issues or obtain mediator assistance to resolve litigation questions concerning: contracting-out, competitors within bargaining unit, work outside of Canada, layoffs and defining training and development reimbursement of up to 3% of wages

Slide 33

Productivity Joint Committee

BC Assessment Authority and CUPE

• Productivity committee will identify improvements to workplace procedures, service delivery and innovations to improve efficiency at the corporate level

Slide 34

Workplace Health Joint Committee

Community Colleges (Ont.) and OPSEU

• With the purpose of maintaining a positive workplace, the committee will review the components of a positive workplace, identify sources of stress, assess feedback, collect and analyze information related to employee & management concerns

Slide 35

Health and Safety Joint Committee

Securitas Canada and USW

• The Health and Safety Committee has the mandate to identify dangerous situations, to make recommendations to the parties to improve employee health and safety and to recommend monitoring procedures and mechanisms

Slide 36

Labour-Management Committee

B.C. Gas Utility and IBEW

• Joint committee was struck to explore the concept of gain sharing, review wide variety of options, recommend and assess options, test alternatives
• Alternatives need to be consistent with company values of integrity, improvement and involvement, foster team work, etc.

Slide 37

Labour-Management Committee Senior Level Committee

Lake Erie and USWA

• In order to provide the basis for a more co-operative relationship through the exchange of information, the parties recognize the value of union input into the decision-making process as well as in the development and implementation of resolutions to matters related to the administration of the basic agreement
• The following subjects will form the main but not exclusive subjects for discussion: workplace reorganization, training, contracting-out and scheduling

Slide 38

How to Contact Us

• 1 800 567-6866 ou 1 819 997-3117
• 1 819 953-9582 (Fax)
• www.hrsdc.gc.ca/en/lp/wid/info.shtml (Internet)