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. In June, 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 Moduline Industries and Medicine Hat Employees’ Association.
The previous contract for these workers expired at the end of May. Both Moduline and the workers approved this new contract on 10 June.
Moduline is a division of Michigan-based Champion Homes. At their Medicine Hat location, about 35 workers build modular homes.
These workers are set to receive 3 wage increases during the new 3-year contract prior to it expiring in May 2027.
| 24 June 2024 | 3.21% |
| 26 May 2025 | 1.78% |
| 25 May 2026 | 2.51% |
That works out to a combined 7.5% over the course of the contract, or 7.68% if you account for compound increases. That averages out to 2.56% per year.
In their previous contract, they received increases of 2.26%, 2.01% and 1.99%, which averages out to 2.13% per year if accounting for compound increases. So this is a better wage increase.
That being said, the wages they got in their last contract didn’t keep up with inflation. In June 2019, the consumer price index in Alberta was 142.7. Four years later, in June 2023, it had reached 164.4, an increase of 21.7, or 15.21%. That’s more than the increases in the new contract and the last contract combined, even if you consider compounding increases.
These workers came into negotiations with a cut to real wages—wages adjusted for inflation—of 8.82% but ended up with a 7.68% increase. That falls short of addressing inflation by more than a percentage point, and that’s without adding on the inflation we’re sure to see this year, next year, and in the final year of the contract.
Mediation Services included a complete copy of the new contract, so I’ve decided to highlight a few of the more significant changes between the two contracts.
New to this contract is a clothing allowance of $300. It’s not an annual allowance, so it’s meant to last for the length of the entire contract. It’s available to workers who labour in the outdoor elements, and it can be used to replace or repair outdoor protective clothing.
The footwear allowance will be increased from $175 per year to $200. Footwear must meet certain guidelines and be approved by the safety manager.
As far as health benefits go, most of the coverage remains unchanged. Chiropractor coverage will increase from $500 per year to $600, however, and laser eye surgery will increase from $250 per year to $300 per year. Dental care will increase from $2,500 per year for basic and major to $3000 and from $1,500 lifetime for periodontal to $2,000.
Under the previous contract, workers going on maternity leave would be entitled to health coverage during their first 15 weeks of leave. In the new contract, workers on maternity leave now fall into the same category as workers out on sickness or injury, and coverage is based on seniority.
Workers who have been with the company for under two years will have coverage until the end of the month. Those who have been with the company for at least 2 years but under 5 years will have coverage for up to 3 months. Anyone with the company for over 5 years will get 6 months coverage.
