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 roughly 30 workers employed by the Rexall Pharma Plus Pharmacies in Edmonton.
These workers are represented by the Health Sciences Association of Alberta. They include all Rexall workers at their University of Alberta Hospital, Royal Alexandra Hospital, and Kay Clinic locations.
They include pharmacists, pharmacy technicians, and pharmacy assistants.
Their previous contract actually expired in December 2023, nearly a year ago. The new contract was settled back in July, 7 months later, but Mediation Services received it only recently.
These workers will get wage increases in each year of their new 4-year contract.
| 1 May 2024 | 2.00% |
| 1 December 2024 | 2.00% |
| 1 May 2025 | 2.50% |
| 1 May 2026 | 2.50% |
| 1 May 2027 | 3.50% |
This works out to a combined wage of 12.5% over the the life of the 4-year contract, or 13.13% if you account for compounding increases. That averages out to 3.13% (3.28%) per year.
There’s a catch though. The 2% wage increase scheduled for this month is only for the top of the wage grid. Anyone not in that top tier will end up with just 10.5% over 4 years, not 12.5%.
These are the first wage increases these workers have received since April 2018. And even then, the increases they got in 2017 and 2018 were the first ones they received since 2013.
So, to summarize:
| 1 April 2013 | 3.00% |
| 1 April 2014 | 0.00% |
| 1 April 2015 | 0.00% |
| 1 April 2016 | 0.00% |
| 1 April 2017 | 1.85% |
| 1 April 2018 | 2.00% |
| 5 December 2019 | 0.00% |
| 5 December 2020 | 0.00% |
| 5 December 2021 | 0.00% |
| 5 December 2022 | 0.00% |
| 5 December 2023 | 0.00% |
These workers had received a 6.85% wage increase over the last 10 years.
Clearly, 8 years of wage freezes means these workers have seen their real wages—wages adjusted for inflation—drop during this time.
The consumer price index in Alberta grew from 127 in April 2012 to 168.6 in April 2024, a jump of 41.6 points. In other words, during that period, inflation increased by 32.76%.
Seriously, inflation grew nearly 5 times faster than their wages did, leaving them with a cut to real wages of 25.91%. This new wage increase won’t even cover half that.
And that’s not even considering inflation during the next 4 years.
Now, to be fair, these workers received lump sum payments in 2014, 2015, and 2020. As well, the new contract brings in a $500 lump sum payment for full-time workers and $250 for part-time workers.
That’s certainly better than nothing at all, but the problem with lump sum payments is that they don’t increase your base salary.
Let’s use entry-level assistants to illustrate.
They make just $17.89 an hour. Assuming they work 40 hours a week for 52 weeks, they should receive $37,211.20 in gross pay. Add on $500 for being full-time workers, and they get $37,711.20.
But when they get the 2.5% wage increase next year, it will be based on $37,211.20, not $37,711.20. So, they end up with $38,141.48, not $38,653.98.
Here are some highlights of other changes between the new contract and their previous contract.
The weekend shift premium will increase from $2.25 per hour to $3.25 per hour. The evening shift premium will remain at $2.75 an hour, where it has been since at least 2013.
National Day of Truth and Reconciliation has been added to the list of named holidays, bringing the total number of holidays eligible for stat pay to 12.
