Last month, the Alberta Union of Provincial Employees published an update on their website regarding contract negotiations for long-term care workers in Calgary.
These 100 or so health care workers are employed by Signature Living, a Toronto-based company that owns 16 care homes for older adults across Canada.
The most recent collective agreement for these workers expired in December 2024, over 16 months ago. Bargaining on the new agreement did not begin until last June, however.
According to last month’s update, the two parties met on the 8th and 9th of April to finish “up several items and started bargaining for our raises and benefits”.
The workers’ bargaining committee proposed a 3% raise every year in a 4-year contract, which is similar to most other public sector bargaining agreements ratified last year and this year.
Signature Living, however, countered with just a 1% raise per year over only 3 years.
Just to be clear, the workers asked for a combined 12%, and the employer lowballed with a measly 3%.
How about we put these two proposals into some context. First, here are the wage increases from the last two contracts:
| 1 July 2018 | 0.00% |
| 1 July 2019 | 0.00% |
| 1 July 2020 | 0.00% |
| 1 July 2021 | 1.00% |
| 1 July 2022 | 2.00% |
| 1 July 2023 | 1.00% |
| 1 July 2024 | 2.00% |
| 6.00% |
These workers unionized back in 2018. However, because they did not ratify their first collective agreement until 2021, they never received any wage increases during the first 3 years of that collective agreement, and there were no retroactive increases.
As a result, their wages were effectively frozen until their first increase in the summer of 2021.
Now, let us compare this to inflation.
In July 2017, the consumer price index in Alberta was 137.0. It increased 33.4 points by July 2024 to 170.4. That is a jump of 24.38%.
Because these workers received a wage increase of only 6% during a period when inflation was over 24%, they ended up with a cut to real wages of 18.38%.
The 3% increase proposed by Signature Living will not be anywhere close enough to cover the loss in wages these workers have had to endure. Even the 12% offered by the workers’ bargaining team falls short.
Plus, keep in mind that because those wages are spread out over several years, rather than being given all at once, that means there will be several years of more inflation, too. This will drive the real wage cut even higher.
Inflation since July 2024, for example, has already hit 3.23%.
On top of that, Signature Living wants to increase the health benefit costs that the workers would shoulder.
Currently, the employer pays 100% of health care premiums and dental care premiums. They want to reduce that to 80% and 50%, respectively, which would force the workers to make up the difference.
Which is ridiculous given that their wages are worth nearly 20% less than they were back in 2017.
The workers’ bargaining team opposes both of those proposals. They have also tabled a few more proposals as well.
They want to convert the health spending account to a flexible spending account and increase it to $1,200. Right now, only workers who have been with the employer for at least 4 years qualify for $1,200.
As well, they want Signature Living to fully cover the professional fees for licensed practical nurses and health care aides need to renew every year to remain registered professionals.
