Fort McMurray equipment operators get wage freezes

Last month, the Mediation Services department of Alberta Jobs, Economy, and Trade published their May 2024 Bargaining Update, which includes details on recently settled collective agreements.

One of the agreements was between Local 955 of the International Union of Operating Engineers and Two Crossings Maintenance Services Ltd.

Local 955 represents about 5 workers employed by Two Crossings in various equipment operator positions, as well as mechanics, welders, machinists, and flag persons. In 2011, the union represented over 60 Two Crossings workers.

Based out of Fort McMurray, Two Crossings is a full-service civil construction firm. They provide civil construction, site maintenance, labour, road maintenance, and equipment rental services to the bitumen mining industry.

The previous contract for these workers, which was had lasted for 5 years, expired at the end of April 2024. The new contract came into effect on 5 May 2024, but it will last for only two years, ending on 30 April 2026.

Notable in this contract is that the workers will get no wage increases at all before it expires two years from now. That in itself sucks, but it’s worse when you go back a decade to see what wage increases looked like in the previous two contracts.

1 May 2014	1.5%
1 May 2015	2.0%
1 May 2016	2.0%
1 May 2017	2.0%
1 May 2018	2.0%
1 May 2019	0.0%
1 May 2020	0.0%
1 May 2021	1.5%
1 May 2022	1.5%
1 May 2023	1.5%

That comes to a total of 14% since 2014. Technically, it’s 14.89% if you account for compound increases. that works out to less than 1.5% per year, on average.

However, in May 2013, the consumer price index in Alberta sat at 129.5, and a decade later, in May 2023, it had jumped to 164.1. That’s an increase of 34.6 points, or 26.72%.

So, while these workers were getting a raise of less than 15% over a decade, inflation increased by nearly 27% during the same period.

That means that these workers ended up with a cut to real wages—wages adjusted for inflation—of 11.83% heading into negotiations.

In other words, for every $1000 they spend on goods and services in May 2013, it would cost them $1118.30 to purchase the same goods in May 2023.

Or to put it another way, If they tried to spend that same $1000 today, they’d be able to afford only $881.70 worth of those same and goods.

And remember, that’s just accounting for inflation up to May 2023. It doesn’t include the 3% interest between May 2023 and May 2024, the interest leading up to May 2025, or the interest in the final year of the contract.

Either way you look at it, these workers are falling behind financially.

Here are some other changes in the new contract.

Health and wellness payments were frozen for this contract. In the previous contract, workers saw payments increase by 9¢ an hour over the length of the contract.

Pension contributions will increase by 25¢ this year, but not next year. In the previous contract, they increased by 50¢ in the first year and 25¢ in all subsequent years.

There are no increases to boot or tool allowances, transportation allowances, or shift premiums.