Last week, Local 401 of the United Food and Commercial Workers posted an update on their website regarding contract negotiations for their members employed with Alberta Beverage Container Recycling Corporation.
ABCRC oversees the collection and recycling of over 150,000 types of regulated, non-refillable beverage containers, which are transported from over 220 independently-owned depots located throughout Alberta to ABCRC facilities, where they are sorted and processed.
The most recent contract for these workers expired in December 2022, so the 135 or so workers have been without a new contract for over a year.
According to Local 401, the employer has submitted an offer to the workers, including improvements to wages and other benefits.
Over the course of the 4-year contract, which is backdated to 1 January 2023 and expires 31 December 2026, the workers will receive 4 wage increases, two of which will be retroactive.
| 1 January 2023 | 4.0% |
| 1 January 2024 | 3.0% |
| 1 January 2025 | 2.5% |
| 1 January 2026 | 2.5% |
That’s an average of 3% per year for a combined total increase of 12%, or 12.54% if you account for compound increases.
In their previous contract, workers saw their pay increase from a range of $19.73–24.67 in 2018 to $20.74–25.93 in 2022, depending on hours worked (more hours means a higher hourly wage).
That works out to an increase of 5.11–5.12% over the life of the contract.
During that same period, the consumer price index in Alberta increased from 138.9 in January 2018 to 160.5 in January 2023, which is about 15.55%.
So while wages increased 5.11–5.12% by the end of their last contract, inflation increased by about 3 times that much, meaning the workers ended up with a decrease in real wages.
Real wages are wages adjusted for inflation. When you apply a 15.55% inflation rate to a wage increase of 5.11–5.12%, you end up with a real wage cut of 10.43–10.44%.
That means that the workers were coming into the new contract already more than 10% behind in wages. And while a 12.54% increase does seem like enough to make up for that loss, remember that the workers won’t see all of that 12.54% for another 2 years, in January 2026.
That’s not even including inflation over the life of the new proposed contract, assuming the workers ratify it.
For example, the consumer price index during the first year of the new contract was 3.18%. Technically, it’s not even the full year, as it’s from 1 January to 1 December, so we still don’t have data on the increase for the month of December.
Regardless. That 3.18% has already eaten up the gains the proposed increases will make on the lost real wages from the previous contract. And we still have inflation for this year, next year, and the final year of the new contract yet to come.
Make no mistake about it: the increase proposed by the employer is more than twice what the workers got in their previous contract. But don’t let that distract you from the fact that they worse off now, relatively speaking, than they were in 2018.
But those poor wage increase in the last contract are coming back to bite these workers.
It’s not just wages that have changed in the proposed contract.
The employer has proposed 3 shift schedules that workers will be able to choose from:
| # of days | Shift length | Days off |
|---|---|---|
| 5 | 8 hours | 2 |
| 4 | 10 hours | 3 |
| 3 | 12 hours | 4 |
Anyone working for over 10 hours in a shift will be entitled to 4 15-minute breaks during their shift. The current maximum is 3 breaks, but it’s reserved for those working 9 hours.
Under the previous contract, ABCRC could terminate employment for a worker who had had been laid off if the lay-off had lasted for more than 60 days. Under the new contract, that limit has been extended to 12 months.
The personal protective equipment allowance is proposed to increase from $175 to $200. It used to cover work boots, insoles, and CSA approved prescription eyewear, but that will be expanded to include gloves, ear protection, and “any other related personal protective equipment required”.
If they ratify the new contract, workers will see their sick leave replaced with personal leave. Under their previous contract, workers were able to accumulate a base rate of 4 hours of sick leave for each full month of employment. That will increase to 5 hours per month. That’s not including the 0.6% per hour worked for bonus leave, which will remain in place.
ABCRC agrees to increase their contributions to the workers’ Education and Training Fund. Previously, they were contributing 3¢ for every hour an employee worked. That would change to 4¢ per hour under the new contract.
The employer also agrees to increase long-term service premiums, which is additional pay workers receive if they’ve been with the ABCRC for a long time.
| Employment length | Current premium | New premium |
|---|---|---|
| 3–5 years | $0.25 per hour | $0.25 per hour |
| 5–10 years | $0.60 per hour | $0.60 per hour |
| 10–15 years | $1.00 per hour | $1.25 per hour |
| 15–20 years | $1.50 per hour | $1.75 per hour |
| 20–25 years | $2.50 per hour | $2.75 per hour |
| 25+ years | $2.75 per hour | $3.00 per hour |
Dental care will be expanded to include 100% for recall oral examination, if the contract is ratified.
The employer has agreed to increase how much they match of what a worker contributes to a group RRSP plan. Under the previous contract, they were matching 65% of the worker’s contribution to a maximum of $350 per year. It’ll increase to 75% and a $400 maximum. However, the employer won’t match worker contributions that are made from vacation time, personal leave time, or annual PPE allowance.
Under the previous contract, workers were entitled to 3 weeks of vacation after they had been with the company for 5 years. The new contract drops that requirement down to 4 years.
Other changes include improved language around dignity and respect, better administration of union dues, and a commitment to address pertinent issues at joint labour–management meetings in 2024.
Workers will have two chances to vote on the proposed contract. The first voting period will run from 13:00 to 16:00 tomorrow at the conference room in the Edmonton workplace. The second will run from 13:00 to 16:00 on 11 January in the conference room in the Calgary workplace.
