Last month, the Mediation Services department of Alberta Jobs, Economy, and Trade published the June 2024 Bargaining Update.
This monthly report provides information about the unionized workforce, primarily in Alberta. Last month, Mediation Services received settlement information regarding 30 private sector and 11 public sector bargaining settlements, covering 2,728 and 1,181 workers respectively.
One of those settlements was between Oerlikon Metco and Local 530A of Unifor.
Their previous contract expired in March 2023. Both Oerlikon Metco and the workers approved this new contract that same March, but Mediation Services only recently received the contract.
Based out of New York, Oerlikon Metco also has locations in Canada, including one in Fort Saskatchewan, where between 25 and 30 workers produce nickel-based composite powders for aerospace, power generation, and electronics applications, as well as other specialty materials.
Here’s a look at the wage increases for the new 3-year contract.
| 1 April 2023 | 5.0% |
| 1 April 2024 | 3.5% |
| 1 April 2025 | 3.0% |
That’s a combined 11.5%, or an annual average of 3.83%.
Their previous contract gave them 6.25% over 3 years, or 2.08% per year, so this raise is definitely an improvement over their previous contract.
In April 2019, the last month these workers received a raise prior their previous contract, the consumer price index in Alberta was 143.7. Four years later, last April, CPI was at 163.7. That’s an increase of 20 points, or 13.92%.
That means that the raise in their previous contract at 6.25% failed to cover the inflation during the same period. In fact, inflation was more than double the raise they got, leading to a cut in real wages—wages adjusted for inflation—of 7.67%.
So, when accounting for inflation, these workers had received a reduction in their purchasing power, heading into negotiations.
Let’s put it this way: for every $1000 they spent on goods and services in April 2019, it now cost them $1,076.70 to buy those same goods and services. Or rather it did in April 2023. Either that, or that same $1000 would be able to buy only $923.30 worth of the goods and services they purchased back in 2019.
The good news is that the 11.5% increase they plan to receive in their new contract makes up that 7.67% difference, leaving about 3.83% left to cover inflation this year and next year.
That’s where the bad news comes in. Inflation in Alberta between April 2023 and April 2024 increased 2.99%. Unless inflation stays below 0.84% over the next two year, these workers are going to be short again heading into the next round of negotiations.
Here are some of the notable changes between the previous contract and the new contract.
Under the previous contract, workers reaching 24 years of continuous employment would qualify for 30 paid vacation days. That has been reduced to 20 years in the new contract.
Personal days have been increased from 4 days to 5 days in the new contract.
Shift premiums will increase from $1.01 an hour to $1.06 for the day shift, from $2.07 an hour to $2.17 for the afternoon shift, and from $3.68 an hour to $3.86 an hour for the night shift by the time this new contract in 2026.
