Innovative Workplace Practices

Excerpt from the Workplace Gazette, Vol. 6, No. 4, Winter 2003

Bruce Aldridge
Workplace Information Directorate
Labour Program, Human Resources Development Canada

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This overview of workplace innovations is based on a review of 81 collective agreement settlements negotiated during the third quarter of 2003. Of these, slightly over one-half (43 settlements) contained provisions considered to be innovative or of particular interest.

Duration

Of the 81 settlements reviewed during the quarter, approximately 34 per cent (27 collective agreements) had a duration of between 31 and 36 months. Seven settlements had durations of 12 months. Seventeen settlements had durations of between 24 and 29 months while 13 had durations of between 43 and 48 months. Ten settlements had durations of exactly 60 months. Seven agreements had the longest duration of 72 months as follows:

Compensation

Innovative elements in compensation appear in 13 agreements. Two agreements have established new profit-sharing plans. Weldwood of Canada Limited, Williams Lake and 100 Mile House, British Colombia and Industrial Wood and Allied Workers of Canada introduced a plan based on the industry's return of capital investment which will provide annual lump-sum payments of $500 in years 2, 4, 5, and 6 of the collective agreement and $1,000 in year 3, if the return on capital investment reaches specified levels in each year.

Air Canada, system-wide and four unions negotiated collective agreements with a wage freeze or reductions. Of these, three agreements with International Association of Machinists and Aerospace Workers, Air Canada Pilots Association and Canadian Union of Public Employees will introduce a profit-sharing plan when the company begins to earn profits. The plan is offering 7.5 per cent of before-tax profits that represent 7.0 per cent or less of revenue, and 25 per cent of all before-tax profits for more than 7.0 per cent of revenue. The fourth bargaining agent, the Canadian Auto Workers, representing the customer service employees, have declined to participate in the profit-sharing plan.

INCO Limited, Sudbury and Port Colborne, Ontario and United Steelworkers of America have an earnings-based compensation plan. For every US$10 million in quarterly operating earnings for the Ontario division, employees receive an additional 25 for every hour worked in the quarter. For every $1 million thereafter, the compensation increases by a further 2.5 per hour. There is no cap to the potential amount payable and any amount paid for the quarter will not be less than their Nickel Price Bonus payment for the quarter. If the compensation plan is paid for the quarter, the Nickel Price Bonus payment will not be paid for the same quarter.

A variable compensation plan continues between Téléglobe Canada inc., Montréal, Quebec and Canadian Overseas Telecommunications Union. The plan is based upon both the achievement of the company's financial objectives and performance assessment of individual employees. Assessment of employee performance is centered on quantity and quality of work, attendance, and teamwork skills.

Timberjack Inc., Woodstock, Ontario and Glass, Molders, Pottery, Plastics and Allied Workers International Union have installed a productivity bonus plan which will provide employees with a monthly bonus based on sharing productivity increases measured in improved output for each hour of input.

Cariboo Pulp and Paper Company, Quesnel, British Columbia and Howe Sound Pulp and Paper Limited, Port Mellon, British Columbia and Communications, Energy and Paperworkers Union of Canada have introduced a pulp price trigger bonus provision. The employers will make a payment of $500 per employee to the local union for each calendar quarter that the RISI (Resource Information Systems Inc.) reported the NBSK (Northern Bleached Sulfite Kraft) price delivered to the Eastern United States averages over $1,020 (Canadian) per metric tonne. The bonus will be used to establish a fund for the sole purpose of funding pension bridge benefits from age 60 to age 61. The first three quarterly payments will be directed for this purpose and subsequent payments will be used for the benefit of active or retired employees.

The National Research Council Canada, Canada-wide and Professional Institute of the Public Service of Canada have a provisional bonus to resolve recruitment and retention difficulties. Employees are eligible for a bonus of $8,000 per year paid bi-weekly. The payment is not folded into wages but will be used for pension calculations. Also, the Vancouver Police Board, Vancouver, British Columbia and British Columbia Federation of Police Officers have deemed that the second wage adjustments of 1.75 per cent in years 2003 and 2004, and of 2.0 per cent in 2005, are for recruitment and retention objectives. A market adjustment award has been established by the Regional Health Authorities of Manitoba, province-wide and Manitoba Association of Health Care Professionals. A majority of classifications will receive additional wage adjustments ranging from 3.0 to 9.5 per cent to resolve recruitment and retention problems. The employer will contribute additional sums of $400,000 on April 1, 2004, October 1, 2004, and April 1, 2005. These additional monies were awarded due to the likelihood that there would be a need to look objectively at salary and market comparisons during the term of the agreement. In the event of a dispute out of the implementation of these amounts, the matter will be referred to arbitration for final decision. The Université Laval, Québec, Quebec and Canadian Union of Public Employees have introduced a job market premium. Employees who possess the same special expertise recognized as rare or southtafter in the labour market and who justify a competitive wage may receive up to 15 per cent of the maximum level of their wage scale.

A performance pay provision has been introduced between Hamilton Police Services Board, Hamilton, Ontario and Hamilton Police Association. All uniform employees are eligible for the payment which will form part of the base salary and be included when calculating overtime, vacation and statutory holiday pay pension contributions, etc. but not for calculating salary for the purpose of sick leave credits. Effective July 1, 2003, the payments will be equal to 3.0 per cent of the First Class Constable wage rate after 8 years of service, 4.0 per cent after 17 years, and 5.0 per cent after 23 years; July 1, 2004 and 2005, 3.0 per cent after 8 years, 6.0 per cent after 17 years, and 9.0 per cent after 23 years.

The Université Laval, Québec, Quebec and Syndicat des professeurs et professeures de l'Université Laval have negotiated two wage parity adjustments. A wage reopener specifies that wages will be adjusted by the same percentages as the Quebec government's public and parapublic sector employees.

Working Conditions

Fishery Products International Limited, Bonavista and other centres, Newfoundland and Labrador and Canadian Auto Workers have negotiated a return-to-work provision. Local managers and union executives shall work together to help crew members make an early and safe return to work after an injury or illness leave. Such accommodation shall not cause the displacement of an employee with greater seniority. Also, the employer has initiated a clause concerning women's issues. At each plant, up to three women who establish a committee on women's concerns will have three paid hours per month for meetings.

A work flexibility initiative has been initiated between Air Canada, system-wide and International Association of Machinists and Aerospace Workers. It allows employees to perform tasks for which they have the required skills. Also, an agreement with the Air Canada Pilots Association presents a special permitted absence program in order to limit surplus of pilots subject to layoff. The voluntary leave of absence may be taken for up to three years or longer if both parties are in agreement. While on such leave, pilots shall retain their seniority date.

Air Transat A. T. inc., Mirabel, Quebec and Air Line Pilots Association International have introduced a guaranteed two days of personal leave which may be reserved in advance for a special occasion.

Job Security

Within both agreements negotiated between Canada Safeway Limited, Calgary, Alberta and Bakery, Confectionery and Tobacco Workers' International Union, and province-wide, Alberta and United Food and Commercial Workers International Union, a work restructuring provision was established. The employer will offer a voluntary employment buyout to a limited number of employees whose rate of pay is greater than $14.00 per hour. The special severance package ranges from $700 for part-time employees, who work less than 4 hours per week, to $25,000 for full-time employees and part-time employees who work more than 36 hours per week. Employees who have 20 or more continuous years of service will receive an additional buyout enhancement in the amount of $500 per year of service over 20 years, to a maximum of $5,000. The employer has the right to limit the number of employees by classification, department and bargaining unit, to ensure that the buyout does not affect the efficient operation of the business.

The City of Winnipeg, Manitoba and Amalgamated Transit Union initiated a provision for charter bus service that uses retired employees but also guards the employment of regular employees on layoff. In the event of layoff of regular bus operators, the use of retired operators would only occur if it were necessary in order to fulfill a charter booking that was accepted prior to the layoff and only after offering any charter work to those employees on layoff.

Plant closure provisions occur in five agreements settled in the third quarter of 2003. Weldwood of Canada Limited, Williams Lake and 100 Mile House, British Columbia and Industrial Wood and Allied Workers of Canada negotiated a provision that in the event of permanent closure of a plant or logging camp, employees will be entitled to a payment equal to 10 days' pay per year of continuous service. Howe Sound Pulp and Paper Limited, Port Melon, British Columbia and Communications, Energy and Paperworkers Union of Canada offer a severance pay in a lump-sum payment equal to 2 weeks' pay per year of service to a maximum of 52 weeks. Timberjack Inc., Woodstock, Ontario and Glass, Molders, Pottery, Plastics and Allied Workers International Union introduced a provision whereby, should a fabrication facility close; senior employees would be subject to layoff and receive specified training. Junior employees who are laid off would receive a severance pay of $1,500 and extended health insurance for six months.

Funds

The Regional Health Authorities of Manitoba, province-wide and Manitoba Association of Health Care Professional have a wage standardization fund. The employers will contribute $1,200,000 to properly finalize wage standardization issues during the term of the collective agreement. With respect to still-unresolved issues, the parties will continue discussions for a further 60 days. Following that period of time, any unresolved issues will be referred to arbitration for a final and binding decision.

INCO Limited, Sudbury and Port Colborne, Ontario and United Steelworkers of America have established a retiree assistance fund to provide financial and moral support to retiring employees. Deductions of $5.00 per employee, per year will be made available from the Earning-Based Compensation Plan payments.

Training

Several agreements now include apprentice training. Field Aviation West, Calgary, Alberta and International Association of Machinists and Aerospace Workers have agreed to set parameters for a program to include training in the trades of avionics, composites, interiors, aircraft maintenance and sheet metal in order to develop qualified aircraft workers. A settlement provision with Finning (Canada), various locations, British Columbia and International Association of Machinists and Aerospace Workers states that the employer will pay all tuition fees and expenses for apprentices annually attending authorized training classes at a vocational school.

Both Scott Paper Limited, New Westminster, and Howe Sound Pulp and Paper Limited, Port Melon, British Columbia with Communications, Energy and Paperworkers Union of Canada have also instituted the payment of apprentice out-of-town training expenses. On successful completion of the required period of vocational school training, the employer will reimburse out-of-town expenses to a maximum of two hours' pay per day on a seven-day per week basis at the first year apprentice rate. These parties will also develop a strategy for maintaining the principles of certified trades training for British Columbia and the opportunity for employees to participate in interprovincial qualifications examinations.

Ontario Hospital Association, various locations and Ontario Public Service Employees Union have negotiated a provision for training before layoff. An employee who has the right to displace another employee will have the entitlement to the same training period as would be typically accorded to a new employee, and may commence such training prior to the anticipated layoff.

Labour-Management Committees

During the third quarter of 2003, 14 of the 43 agreements with innovative practices contained provisions for establishing committees dealing with a wide variety of concerns.

Fishery Products International Limited, Bonavista and other centres, Newfoundland and Labrador and CAW-Canada have introduced a committee regarding technological change and ergonomics. To help develop the committee's work, the employer will provide $5,000 to help union-nominated committee members acquire ergonomics training. A committee concerning frontline police staffing has been established between Hamilton Police Services Board, Hamilton, Ontario and Hamilton Police Association. The committee will review all aspects of staffing and the advantage of the hiring of frontline officers and the need for a viability of part-time policing within the city.

The Université Laval, Québec, Quebec and Canadian Union of Public Employees introduced a telework committee. It will review the various methods whereby employee's duties can be decentralized so as to enable employees to use telematic networks to perform work at home.

Cariboo Pulp and Paper Company, Quesnel, British Columbia and Communications, Energy and Paperworkers Union of Canada have initiated a committee to examine ways to enhance employment opportunities. They will review new work arrangements including reduced overtime and working time alternatives, and report recommendations to the employer as soon as they are developed.

Other committees included in collective agreements discuss such items as customer communication, health and welfare benefit costs, training, and job scheduling.