Last month, Local 401 of the United Food and Commercial Workers published an update on their website regarding contract negotiations for some of their members.
These 50 or so workers are employed by Excel Society at the employer’s Gerard Raymond Centre location in Edmonton, where they provide support and advocacy for people of all ages who have mental, physical and developmental disabilities.
The workers include licensed practical nurses, health care aides, and community support workers.
This round of negotiations is for the workers’ third contract with their employer since unionizing a decade ago. Their most recent contract expired over 3 years ago, in March 2021.
After months of negotiations, the employer has tabled their final offer, and it’s not great. At least not as far as wage increases go.
There’s only one wage increase for the entire contract: 7.15% in July 2023. They got only one increase in their last contract, too. Here’s a look at the raises between the two contracts.
| 2018 | 0.00% |
| 2019 | 1.00% |
| 2020 | 0.00% |
| 2021 | 0.00% |
| 2022 | 0.00% |
| 2023 | 7.15% |
| 2024 | 0.00% |
| 2025 | 0.00% |
| 2026 | 0.00% |
That works out to a combined 8.15% over 8 years, or an average of 1.02% per year.
Keep in mind that the consumer price index in Alberta was 137.4, but it had increased to 168.6% this past April. That’s a jump of 31.2 points, or 22.71%.
So, while their wages have increased 8.15% over the last 7 years (assuming the workers even ratify this new contract), inflation has increased 22.17%.
This means that the workers will end up with a cut to real wages—wages adjusted for inflation—of 14.02% if the new contract goes into effect.
In other words, for every $1000 they received in April 2017, their purchasing power would be worth only $859.80 as of this past April. If they bought $1000 worth of goods and services in April 2017, they’d only be able to afford $859.80 of those same goods and services. Either that, or they’d have to spend $1140.20 to be able to purchase all those same goods and services.
And remember, that’s just for inflation up to this past April. It doesn’t include inflation in the final two years of the proposed contract, which would undoubtedly rise even more.
Excel Society did offer a lump sum payment of 10% for 2023, which will help, but lump sum payments don’t increase the base salary.
If you are making a $30,000 and get a 10% lump sump payment, you’ll end up with $33,000 that year, but the next year, your salary will be back to $30,000.
Here are a few other changes in the tentative agreement.
Paid injury leave will increase from 10 days to 15 days, National Day for Truth and Reconciliation will be recognized as a statutory holiday, and Excel Society has agreed to contribute to an education fund, which will help workers learn new skills.
There is currently no date set for the workers to vote on whether to ratify this tentative agreement, although the union is working on organizing that. The union is refusing to recommend that the workers ratify the agreement, calling it a “problematic” offer.
If the workers reject the offer, the bargaining committee will need to go back to the negotiating table to see if they could get a better contract. If the employer continues to refuse to pay their workers a wage that allows them to afford the skyrocketing cost of living, then negotiations may go to mediation.
