Last month, the Mediation Services department of Alberta Jobs, Economy, and Trade published the July 2025 Bargaining Update.
This monthly report provides information about the unionized workforce, primarily in Alberta. In July, Mediation Services received settlement information regarding 19 private sector and 15 public sector bargaining settlements, covering 2,179 and 4,684 workers respectively.
Among those settlements was a contract for about 100 workers employed by Weldco Heavy Industries.
Located in the Fort MacKay Caribou Energy Park, about 60 kilometres north of Fort McMurray, Weldco specializes in steel fabrication and repair.
These workers are unionized with Local 99 of the International Association of Machinists and Aerospace Workers, also known as IAM or just the Machinists. They include everyone employed by Weldco except those working in sales or office positions.
Their previous collective agreement expired at the end of last year, and their new one was ratified this past February, about 2 months later.
The workers are set to receive wage increases in each year of their 3-year contract, which expires at the end of 2027. The first increase is effective as of the ratification date, not retroactive to the start of the contract
| 5 February 2025 | 5.00% |
| 1 January 2026 | 4.00% |
| 1 January 2027 | 3.00% |
This comes to a combined increase of 12%, or 12.48% if we account for compounding increases. That averages out to 4% (4.16%) per year.
This is more than the 7.5% they received in their previous contract.
| 23 March 2022 | 2.50% |
| 1 January 2023 | 2.50% |
| 1 January 2024 | 2.50% |
Keep in mind that the consumer price index in Alberta rose 20.1 points from 145.8 in January 2021 (their last raise prior to their previous contract) to 165.9 in January 2024. That is a 13.79% increase.
If inflation was 13.79% during the period when they saw a 7.5% wage increase, these workers were dealing with a cut to their real wages of 6.29% heading into negotiations.
The 5% raise they got earlier this year after ratifying their new contract was not enough to completely erase that real wage cut, especially considering that inflation between January 2024 and January 2025 was 2.53%.
Next year’s 4% increase could finish the job, but that will depend on what inflation this year will be. So far, it is 1.47%, with 5 more months left to go.
It might end up that these workers will end up breaking even by the end of the contract.
Speaking of which, by the time this contract expires, no one will be making less than $25 an hour, and some of them will finally be making over $50 an hour.
Here are some highlights of what changed between the previous collective agreement and the new collective agreement.
The following clause was added to the collective agreement:
4.10 The Company will pay regular wages with applicable premiums and maintain benefits for Employees on the bargaining committee for time spent in actual bargaining when bargaining takes place during their scheduled shift. The Company may then invoice the Union for the full amount paid to the Employee. The invoice is due in 30 days, failing which interest at prime plus 2% shall be payable.
As was this one:
9.12 The Union agrees that the Employer will develop a policy that will allow for the exchange of shifts by mutual agreement between Employees that will be subject to prior management approval and which will function without leading to additional costs for the Employer. The Employer will review the policy with the Union for its input before implementation and that will occur no later than 90 days after ratification.
The new contract includes National Day for Truth and Reconciliation among the stat holidays, which brings the total number of stat holidays to 12.
The transportation allowance increased from $271 a month to $296 a month. The meal allowance also increased, going from $325 a month in the previous agreement to $350 in the new one.
The accommodation allowance no longer has a maximum listed in the agreement. As well, it now excludes overtime work when calculation the allowance.
Optional group RRSP contributions have increased from 4% of base wage to 5% of base wage, payable by the worker; although the employer’s matching contribution also increased to 5%. As well, a new clause was added so that if the contribution increases again, Weldco’s contribution will match that increase.
Under the previous contract, the employer had agreed to “furnish all power tools and equipment required to perform daily tasks”. The new contract removed the word power.
The boot allowance increased from $200 per year to $250 per year.
As of the new collective agreement, workers will now have access to a $250 clothing allowance for such things as AdFlos and winter clothing. Plus, the workers will have access to an employee purchase programme to buy their own AdFlo, including parts; although it maxes out at $150 per pay period.
Also new to the collective agreement is an alcohol and drug testing policy.
20.01 The Employer will pay for 75% of the cost of the initial assessment when an Employee has a positive drug/alcohol test. The Employee will be responsible for reimbursing the Employer for 25% of the cost and the Employer is authorized to deduct that from the Employee’s pay to a maximum deduction of $250.00 per pay cheque except for the Employee’s final pay cheque where there will not be that cap.
Adopted children have been added to the list of immediate family members for whom workers can take their 3 days of bereavement leave.
The grievance procedure has been updated to reduce the amount of time that must pass before the union can escalate a grievance to the general manager from 28 days to 16 days.
Workers can now bank up to 72 hours of overtime, up from the maximum of 40 hours they received in their previous contract.
This is the third collective agreement these workers have ratified since unionizing in 2019.
