Coke plant workers in Edmonton get 19.5% raise

Last month, the Mediation Services department of Alberta Jobs, Economy, and Trade published the September–October 2024 Bargaining Update.

This monthly report provides information about the unionized workforce, primarily in Alberta. In the months of September and October, Mediation Services received settlement information regarding 36 private sector and 31 public sector bargaining settlements, covering 3,408 and 4,855 workers respectively.

Among those settlements was a contract for 240 workers employed by the Coca-Cola Canada Bottling at its Edmonton plant.

These workers are represented by Local 350 of Unifor. They include everyone employed at the plant except account managers, sales execution specialists, supervisors, financial analysts, inventory analysts, dispatchers, anyone ranked higher than supervisor, and 3 administrative assistants.

Their previous contract actually expired this past May. The new contract was settled just the next day, but Mediation Services received it only recently.

These workers will get wage increases in each year of their new 6-year contract, including a 4% increase on the first day of the contract.

16 May 2024	4.00%
16 May 2025	4.00%
16 May 2026	3.00%
16 May 2027	3.00%
16 May 2028	3.00%
16 May 2029	2.50%

This works out to a combined wage of 19.5% over the the life of the 4-year contract, or 21.14% if you account for compounding increases. That averages out to 3.25% (3.52%) per year.

This is way better than what they got in their last contract, which was only half the length.

16 May 2021	0.00%
16 May 2022	2.00%
16 May 2023	2.50%

And they should get a way better wage increase in this new contract. The raises in their last contract sucked.

I mean, seriously, a wage freeze the year before skyrocketing inflation?

The consumer price index in Alberta grew from 144.1 in May 2020 to 169.1 in May 2024, a jump of 25 points. In other words, during that period, inflation increased by 17.35%.

Of course, Coca-Cola couldn’t have predicted inflation would shoot sky high in 2022, which is why it’s important to make it up in subsequent agreements.

With inflation growing more 4 times faster than their wages did, these workers ended up with a cut to real wages of 12.85%. A raise of 19.5% will erase their cut to real wages. So, that’s a good thing.

But the bad news is that the first year comes with an increase of only 4%. In fact, it’s not until the 4th year that the workers will have enough raises to cover the loss in real wages.

Over the life of the contract, these workers are set to receive 19.5% (21.14%), which will give them 6.65% (8.29%) after covering the lost real wages. That works out to 1.11% (1.38%) per year, on average.

Remember though, that’s supposed to cover inflation over the next 6 years, so that’s not really extra money in their pocket.

For example, inflation between May 2023 (the last time they got a raise prior to this new contract) and October 2024 (the most recent data available) increased by 3.66%.

The average wage increase—after adjusting for making up lost wages—for the same period is 1.67%, half of what inflation was during the same period.

Here’s hoping inflation drops over the next 6 years. If not, these workers will see a cut to real wages heading into bargaining in 2030.

By the end of the contract, the lowest-paid worker will be getting $23.85 an hour, up from $19.68 an hour at the end of the previous contract.

Below are some highlights of other changes between the new contract and their previous contract.

Office workers had a different overtime formula than other workers, with overtime kicking in after 7.5 hours, with it being 8 hours for everyone else. It’s now 8 hours for all workers in this bargaining unit.

The boot allowance has increased from $185 per year to $200 per year.

Under the previous contract, “inside” workers were issued a parka or a bomber-style jacket, which could be replaced once every 4 years. In the new contract, they are issued a 3-in-1 jacket, which can be replaced every 2 years.

Under the previous contract, the company’s extended group insurance plan was to not lower, change, modify, or delete any benefits that were in place as of May 2003. That date has been changed to May 2024.

Life insurance coverage has increased from $55,000 to $70,000. Also, accidental death & dismemberment wasn’t included in the previous contract, but it is now and covers $140,000.

Weekly benefits for workers who have to go on disability used to be based on income level. Now, it’s just two-thirds of their regular pay for everyone, regardless of income level.

Dental care has increased from $1,500 per year for routine and major treatment to $2,000 per year. Orthodontic treatment has increased from $2,500 per child to $3,000 per child. The rates were based on the 2008 dental fee schedule. It’s been updated to include the current fee schedule.

Vision care has increased from $250 per family member every 2 years to $350 per family member every 2 years.

New to the contract is a survivor benefit, which ensure coverage for a worker’s family continues for a year, in the event that the worker dies.

The retirement plan under the previous contract included a basic monthly benefit of $50 per month for each year a worker were employed with the company. That has changed depending on when the worker retires.

Retire date	Basic monthly benefit
1 October 2006	$50
1 June 2024	$52
1 June 2025	$54
1 June 2026	$56
1 June 2027	$58
1 June 2028	$60
1 June 2029	$62

There has also been improvement in language throughout the contract to make it more gender neutral.