Grain Millers makes final offer to GSU Local 4 members

Grain Millers Canada Corporation has made a Final Offer to Local 4 members following the negotiations with GSU Local 4’s bargaining committee on May 1-3.

This information was sent to members by email on May 16. If you are a Local 4 member and you didn’t receive a copy of the email, we don’t have your email address in our database. Contact GSU staff Steve Torgerson at Steve@gsu.ca to update your contact information.

Send your teen to the SFL Summer Camp – Aug. 10-16

This year’s camp will be held at the Shekinah Retreat Centre (near Waldheim, SK).

This popular camp empowers young people through learning. Young people aged 13-16 who are children of union members (like GSU) are eligible to attend. The camp is a fun, safe environment where campers experience active learning based on cooperation, equality, and social justice.

The camp always fills up quickly, so don’t miss out! Act now to save your camper a spot.

Learn more here.

Contact your GSU staff rep to learn more about a GSU sponsorship for your camper or how to register.

Mastering your performance review

Do you remember the feeling you got in the pit of your stomach when it came time for your teacher to hand out report cards? It didn’t matter whether you were expecting a good or bad one. You just weren’t entirely sure of what he or she thought of your work until you saw it in writing. The same is true of your annual performance review from your employer. Even if you are confident of doing a good job, feeling stressed out about it isn’t uncommon. After all, this single evaluation may have profound effects on your career.

Employers often base their decisions about raises and promotions on performance reviews (sometimes called employee evaluations or performance appraisals). They may even use them to decide whether or not to fire an employee. Truth being told, often many managers dislike performance reviews as much as you do. Most managers would prefer to offer regular feedback, but organizations often require formal reviews.

A performance review makes workers feel helpless because the person writing it wields a lot of power. His or her opinion of what you’ve done over the past year-not necessarily an unbiased account-goes into the report and therefore into your permanent file. While you don’t have a lot of control over this situation, you do have some. Having a strategy for dealing with the review will alleviate some of your stress and could even improve the outcome.

To read the entire article at the Balanced Careers follow this link:  Mastering Your Performance Review

Happy May Day!

May 1 is celebrated in many countries as a traditional springtime festival and as an international day honouring workers.

If you are in Saskatoon, consider attending the May 1 at 1:00 p.m. ceremony in Friendship Park (19 Street E. (Spadina Crescent E.), Saskatoon).

Workers in the Regina area are invited to attend the May 1, 2019 May Day Parade in Regina. If you are interested in attending, join the line-up between 5:00 and 6:00 p.m. at the Regina Union Centre (2709 – 12th Avenue, Regina.) At 6:00 p.m. sharp, participants will begin their march to the Legislative Building for a rally.

Vote Results Released – GSU Locals 1 and 2

All of the membership meetings have been completed and the ballots cast to date by GSU Local 1 and 2 members on Viterra’s April 2, 2019 final offer have been tallied. The results of the voting are as follows.

Local 1:
59.53 percent of members who cast ballots voted to accept Viterra’s final offer. 40.47 percent voted to reject the final offer.

Local 2:
61.54 percent of member who cast ballots voted to accept Viterra’s final offer. 38.46 percent voted to reject the final offer.

The results of the vote are preliminary for GSU Local 1 since there might be one or two absentee ballots in the mail. Nonetheless, any outstanding absentee ballots will not affect the final outcome and the union bargaining committee will proceed to finalize a new operations/maintenance collective agreement based on Viterra’s April 2, 2019 final offer.

The results of the vote are final for GSU Local 2 and the union bargaining committee will proceed to finalize a new Regina office collective agreement based on Viterra’s April 2, 2019 final offer.

“Whether members voted in favour or against the final offer they engaged in workplace democracy that is unique to union representation,” said GSU president Jim Brown. “There were a significant number of votes to reject the final offer and that reflects the dissatisfaction members have with the Viterra’s pay system.”

“Even though the new collective agreements will be based on the final offer, GSU’s leadership team will continue to advocate and press for reform of the pay system,” said GSU general secretary Hugh Wagner. “Thank you to everyone who participated in the vote.”


Questions? Comments? Contact your GSU bargaining committee representatives.

1 MINUTE ACTION: Help keep Canadian workers safe

Every year on April 28, the National Day of Mourning commemorates workers who have been killed, injured or suffered illness due to workplace related hazards and occupational exposures.

Canada’s unions continue to call for better enforcement of related legislations. They also call on employers and governments to do more to prevent such fatalities from happening in the first place.

You can help by sending an email to your labour minister, calling on your government to:

• Enforce the laws that keep workers safe, including Occupational Safety and Health requirements in every jurisdiction and the Westray provisions in the Criminal Code of Canada.

• Focus on prevention. Investing in prevention the best way to save lives. Pro active inspections, a robust enforcement regime, strong health and safety committees, and a systemic approach to prevention are needed.

• Ensure meaningful worker participation in developing and monitoring the systems that will make workplaces safer. A strong, effective health and safety committee is a powerful tool for making workplaces safer and protecting the lives and health of workers.

• Punish the bad actors. When employers do not fulfill their duty to ensure a safe workplace, there must be consequences. Otherwise, workers lives will continue to be put at risk.

• Call on your federal counterpart to reinstate the previous, stronger definition of danger in the Canada Labour Code. The right to refuse unsafe work is one of the three basic rights at work in Canada.

Learn more and send your email here.

SOURCE: Canadian Labour Congress

GSU’s Joint Executive Council meeting to be held May 15

The Joint Executive Council (JEC) of GSU comprises the representatives elected by the Locals. This group of officers is the governing body of the union which formulates policy and oversees the business of the GSU between Policy Conventions.

At its May meeting, council members review GSU’s 2018 Audited Financial Statements, review current events, receive an administrative update, and address any other business which arises.

Members who have concerns they would like addressed at the JEC meeting can contact their elected officers or a GSU staff representative.

Today is #EqualPayDay

According to the Ontario’s Equal Pay Coalition, today the average female worker’s earnings since Jan. 1, 2018 match their male co-worker’s earnings for the 2018 calendar year.

The numbers don’t lie, and they are appalling. Today – in 2019 – women overall make 32 percent less than men.

The gender gap is even wider for some. Here’s how, on average, different women fare compared to white men born in Canada:

  • Racialized women make 40 percent less.
  • Indigenous women make 45 percent less.
  • Immigrant women make 55 percent less.
  • Women with a disability make 56 percent less.

Wage discrimination is real. 

Equal work deserves equal pay. It’s common sense.

BARGAINING UPDATES: Grain Millers, Discovery Co-op, Lloydminster Co-op

Local 4 (Grain Millers) bargaining meeting April 10, 2019

The Local 4 bargaining committee met with Company representatives March 26-28. This was the second time both sides have met since negotiations began.  

The Company has taken a hard line this past round and they didn’t make any significant movement in the last bargaining session. As a result, GSU’s bargaining committee is holding membership meetings on April 10 to consult with union members.

GSU Local 4 bargaining committee: Alex MacKay, Ryan McNabb, Kerry Whitters, Tyler Chorneyko, Glen Wlaschuk, and GSU staff rep Steve Torgerson.

Local 17 (Discovery Co-op) bargaining update

GSU’s Local 17 members rejected the company’s final offer and the parties are at an impasse.  The Union served notice of impasse to the Minister of Labour Relations and Workplace Safety and we expect the Minister will appoint a conciliator to arrange conciliated bargaining session(s) within the next 60 days to assist the parties and attempt to reach an agreement.

Local 18 (Lloydminster Co-op) bargaining update 

As was the case in Local 17, GSU’s Local 18 members also rejected the company’s final offer and the parties are at an impasse.  The Union served notice of impasse to the Minister of Labour Relations and Workplace Safety and we expect the Minister will appoint a conciliator to assist the parties and arrange a conciliated bargaining session(s) within the next 60 days.

Local 2 (Viterra – Regina Office) NOTICE OF EMPLOYER FINAL OFFER AND VOTE

April 3, 2019

GSU Local 2 Members (Viterra Head Office),

On March 26 and 27, 2019 the bargaining committees for GSU Locals 1 and 2 met with Viterra representatives to resume agreement renewal collective bargaining. Despite our best efforts those bargaining meetings did not result in a tentative settlement since we were unable to resolve key issues related to wage rates and wage increases.

Instead of a tentative settlement GSU’s Local 1 and 2 bargaining committee has received a final offer from Viterra and is bringing that offer to union members for a vote as to acceptance or rejection. Each Local will conduct a separate vote on Viterra’s final offer as it pertains to the collective agreement covering their bargaining unit.

The questions on the ballot members will receive are as follows:

  • I accept the final offer received from Viterra Inc. on April 2, 2019 and I authorize Grain & General Services Union to conclude the renewal of the collective agreement covering the bargaining unit employees based on the proposed final offer.
  • I reject the final offer received from Viterra on April 2, 2019.

GSU’s bargaining committee is not recommending how members should vote with regard to Viterra’s April 2, 2019 final offer.

Each member is entitled to a vote by casting a ballot. There will not be any proxy voting permitted. Absentee voting will be permitted provided the member wishing to cast an absentee ballot makes prior arrangements with the GSU office in Regina and casts their ballot by April 22, 2019.

Union members will be informed of the date, time and location of the meeting where the vote will be conducted.

Once the voting is complete, the ballots cast will be counted by the executive committee. The results will be reported to GSU members and Viterra.

Sincerely,
ON BEHALF OF GSU LOCAL 1 & 2 BARGAINING COMMITTEE,
Hugh Wagner
Bargaining Committee Spokesperson

BARGAINING COMMITTEE MEMBERS
Local 1 – Jim Brown (Balgonie), Brett North (Moose Jaw), Wilfred Harris (Carnduff), Travis Brewer (Saskatoon)
Local 2 – Sheila Tran (Regina), Howard Wilson (Regina)

FINAL OFFER REPORT

GSU/Viterra Regina Office

In addition to the Notice of Final Offer message above, a link to this Final Offer Report and the final offer received from Viterra on April 2, 2019 was sent to members via email on April 3.

Members can read and download Viterra’s final offer by clicking on the following link:

If an Article or section of an Article of the collective agreement is not mentioned in this report, it means there will not be any change to that Article or section as the case may be. 

Article 1 – Scope and Definition of the collective agreement would be changed to reflect Viterra’s somewhat new approach to wages based on salary ranges, job rate ranges and work streams which are set out in the April 2 final offer.

Article 4 – Company Relations of the collective agreement would be changed to update the language regarding employee access to performance appraisals, evaluations and personnel files. In addition the prohibited grounds of discrimination would be updated to be consistent with the Canadian Human Rights Act. It has been changed by amending section 12.3 to recognize that postings are now online.

Article 8 – Benefit Plans of the collective agreement would be amended by updating the sick leave procedure in section 8.2 Sick Leave to include providing medical reports to a designate of the Company. Section 8.3 Extended Sick Leave would be amended to reduce the waiting period to one week (currently two weeks) and increase the covered period of time from 105 calendar days to 112 calendars days. Similar to regular sick leave, employee medical reports may be provided to a designate appointed by the Company. The reference to extended sick leave ceasing at normal retirement age will be deleted.

Article 11 – Workers’ Compensation of the collective agreement would be amended to delete the current section 11.2 since WCB benefits are paid directly to Company at 90 percent of the employee’s net salary, while the employee continues to receive her/his salary from the Company. Section 11.4 will be amended to clarify participant’s in an employee’s return to work plan and section 11.5 will be deleted since it is redundant.

Article 13 – Leaves of Absence of the collective agreement would be amended by modifying the description of Pressing Necessity set out in section 13.3 and by adding a new section 13.9 Personal Family Leave. The proposed new section 13.9 would provide for up to five days of personal family leave; with up to three days being paid and charged to employees’ accumulated sick leave (provided the employee has at least three months of continuous service.)

Article 14 – Supplemental Employment Benefit (SEB) of the collective agreement would be amended in section 14.1 a) by reducing the eligibility for SEB benefits to one year and by increasing the number of weeks of SEB benefits available to employees with more than one, but less than four years’ service.

Article 17 – Temporary Performance of Higher Duty (TPHD) of the collective agreement would be amended to provide that TPHD pay is only available when an employee is assigned to temporarily relieve in a position with a higher salary grade.

Article 19 – Shift Differential, Call Out and Standby Pay of the collective agreement would be amended by increasing the shift differentials set out in sections 19.1 and 19.2 to $1.75 per hour.

Article 21 – Vacations of the collective agreement would be amended in section 21.3 to increase the maximum vacation accrual rate on overtime worked from eight (8) percent to ten (10) percent.  

Article 24 – Position Elimination of the collective agreement would be amended to provide that employees subject to position elimination who receive pay in lieu of notice instead of working notice will have the option to choose immediate termination of employment and severance pay.

Article 25 – Scale of Wages/Salaries, Job Titles, Work Streams Salary Grades and Salary Ranges of the collective agreement would be amended to include the concept of work streams as well as changes to position titles, salary grades and salary ranges (including minimums and maximums for each grade and work stream as set out the attached copy of the Company’s April 2 final offer.

Notwithstanding the Company’s proposed new compensation (pay) structure, the salary maximums set out in the collective agreement that expired on October 31, 2018 will continue to apply to all current employees (as of the date of ratification) for the duration of the proposed collective agreement, after which the amended compensation (pay) structure will apply to all employees. Pay adjustments as proposed by the Company would become effective as of January 1, 2019.

The Company proposes the following annual aggregate salary increases:

  1. January 1, 2019 – 2.5%
  2. January 1, 2020 – 2.0%
  3. January 1, 2021 – 2.0%
  4. January 1, 2022 – 2.5%  

Article 27 – Effective Date and Duration of Agreement of the collective agreement would be from November 1, 2018 to October 31, 2022; a term of four (4) years.

Analysis of Viterra’s April 2, 2019 Final Offer

A key agreement renewal bargaining focus by GSU’s bargaining committee was making changes to the so called pay for performance salary system by guaranteeing each employee annual wage increases at least equal to the rise in the cost of living.

In addition, GSU’s Local 1 and 2 bargaining committee attempted to convince Viterra management to agree to additional incremental annual pay increases that would help employees progress towards the maximum of the salary range for their position.

In response to GSU bargaining proposals, Viterra’s April 2 final offer contains some improvement to collective agreement language in relation to extended sick leave, personal family leave, supplementary employment benefits, vacation pay on overtime, shift differentials and aggregate pay increases. However, the final offer does not address the above wage increase objectives identified by union members and pursued by GSU’s bargaining committee.

GSU’s bargaining committee also argued against the reduction of salary grade maximums and salary downgrades applicable to a number of job titles as contained in Viterra’s proposed salary grades and work streams. However, as indicated in its April 2 final offer, Viterra is only prepared to continue to apply the salary grade maximums from the expired agreement to current employees who would otherwise be negatively affected by the proposed new salary grades and/or salary range maximums.  

Your bargaining committee fought hard to obtain wage increases and a better salary system for all employees. We were not able to convince Viterra management of the worthiness the union bargaining proposals on these subjects. For these reasons GSU’s Local 1 and 2 bargaining committee is not making any recommendation on whether union members should vote to accept or reject Viterra’s April 2, 2019 final offer.

If Viterra’s philosophy in relation to pay for performance salary system is going to change, it is clear to your GSU bargaining committee that a clear and overwhelming commitment to action by union members is required.

It is your bargaining committee’s sincere belief that the members of Locals 1 and 2 are best positioned to determine whether Viterra’s final offer is sufficient to form the basis of new collective agreements.

On behalf of the GSU Local 1 and 2 Bargaining Committee,
Hugh Wagner
General Secretary

Questions? Comments? Concerns?

Contact a bargaining committee member directly or email bargaining committee spokesperson Hugh Wagner at gsu@gsu.ca.


Local 1 (Viterra – Ops & Maintenance) NOTICE OF EMPLOYER FINAL OFFER AND VOTE

 April 3, 2019

GSU Local 1 Members (Viterra Country Operations & Maintenance),

On March 26 and 27, 2019 the bargaining committees for GSU Locals 1 and 2 met with Viterra representatives to resume agreement renewal collective bargaining. Despite our best efforts those bargaining meetings did not result in a tentative settlement since we were unable to resolve key issues related to wage rates and wage increases.

Instead of a tentative settlement GSU’s Local 1 and 2 bargaining committee has received a final offer from Viterra and is bringing that offer to union members for a vote as to acceptance or rejection. Each Local will conduct a separate vote on Viterra’s final offer as it pertains to the collective agreement covering their bargaining unit.

The questions on the ballot members will receive are as follows:

  • I accept the final offer received from Viterra Inc. on April 2, 2019 and I authorize Grain & General Services Union to conclude the renewal of the collective agreement covering the bargaining unit employees based on the proposed final offer.
  • I reject the final offer received from Viterra on April 2, 2019.

GSU’s bargaining committee is not recommending how members should vote with regard to Viterra’s April 2, 2019 final offer.

Each member is entitled to a vote by casting a ballot. There will not be any proxy voting permitted. Absentee voting will be permitted provided the member wishing to cast an absentee ballot makes prior arrangements with the GSU office in Regina and casts their ballot by April 22, 2019.

GSU is arranging with Viterra to conduct workplace votes at each location. Members will be informed of the date and time of the opportunity to vote at their workplace.

Once the voting is complete, the ballots cast will be counted by the executive committee. The results will be reported to GSU members and Viterra.

Sincerely,
ON BEHALF OF GSU LOCAL 1 & 2 BARGAINING COMMITTEE
Hugh Wagner
Bargaining Committee Spokesperson

BARGAINING COMMITTEE MEMBERS
Local 1 – Jim Brown (Balgonie), Brett North (Moose Jaw), Wilfred Harris (Carnduff), Travis Brewer (Saskatoon)
Local 2 – Sheila Tran (Regina), Howard Wilson (Regina)

FINAL OFFER REPORT

GSU/Viterra Country Operations & Maintenance Collective Agreement

In addition to the Notice of Final Offer message above, a link to this Final Offer Report and the final offer received from Viterra on April 2, 2019 was sent to members via email on April 3.

Members can read and download Viterra’s final offer by clicking on the following link:

If an Article or section of an Article of the collective agreement is not mentioned in this report, it means there will not be any change to that Article or section as the case may be. 

Article 1Scope and Definition of the collective agreement would be changed to reflect Viterra’s somewhat new approach to wages based on salary ranges, job rate ranges and work streams which are set out in the April 2 final offer.

Article 4 Company Relations of the collective agreement would be changed to update the language regarding employee access to performance appraisals, evaluations and personnel files. In addition the prohibited grounds of discrimination would be updated to be consistent with the Canadian Human Rights Act. It has been changed by amending section 12.3 to recognize that postings are now online.

Article 8 Benefit Plans of the collective agreement would be amended by updating the sick leave procedure in section 8.2 Sick Leave to include providing medical reports to a designate of the Company. Section 8.3 Extended Sick Leave would be amended to reduce the waiting period to one week (currently two weeks) and increase the covered period of time from 105 calendar days to 112 calendars days. Similar to regular sick leave, employee medical reports may be provided to a designate appointed by the Company. The reference to extended sick leave ceasing at normal retirement age will be deleted.

Article 11Workers’ Compensation of the collective agreement would be amended to delete the current section 11.2 since WCB benefits are paid directly to Company at 90 percent of the employee’s net salary, while the employee continues to receive her/his salary from the Company. Section 11.4 will be amended to clarify participant’s in an employee’s return to work plan and section 11.5 will be deleted since it is redundant.

Article 13Leaves of Absence of the collective agreement would be amended by modifying the description of Pressing Necessity set out in section 13.3 and by adding a new section 13.9 Personal Family Leave. The proposed new section 13.9 would provide for up to five days of personal family leave; with up to three days being paid and charged to employees’ accumulated sick leave (provided the employee has at least three months of continuous service.)

Article 14Supplemental Employment Benefit (SEB) of the collective agreement would be amended in section 14.1 a) by reducing the eligibility for SEB benefits to one year and by increasing the number of weeks of SEB benefits available to employees with more than one, but less than four years’ service.

Article 17Temporary Performance of Higher Duty (TPHD) of the collective agreement would be amended to provide that TPHD pay is only available when an employee is assigned to temporarily relieve in a position with a higher salary grade.

Article 19 Shift Differential, Call Out and Standby Pay of the collective agreement would be amended by increasing the shift differentials set out in sections 19.1 and 19.2 to $1.75 per hour.

Article 21Vacations of the collective agreement would be amended in section 21.3 to increase the maximum vacation accrual rate on overtime worked from eight (8) percent to ten (10) percent.  

Article 24 Position Elimination of the collective agreement would be amended to provide that employees subject to position elimination who receive pay in lieu of notice instead of working notice will have the option to choose immediate termination of employment and severance pay.

Article 25Scale of Wages/Salaries, Job Titles, Work Streams Salary Grades and Salary Ranges of the collective agreement would be amended to include the concept of work streams as well as changes to position titles, salary grades and salary ranges (including minimums and maximums for each grade and work stream as set out the attached copy of the Company’s April 2 final offer.

Notwithstanding the Company’s proposed new compensation (pay) structure, the salary maximums set out in the collective agreement that expired on October 31, 2018 will continue to apply to all current employees (as of the date of ratification) for the duration of the proposed collective agreement, after which the amended compensation (pay) structure will apply to all employees. Pay adjustments as proposed by the Company would become effective as of January 1, 2019.

The Company proposes the following annual aggregate salary increases:

  1. January 1, 2019 – 2.5%
  2. January 1, 2020 – 2.0%
  3. January 1, 2021 – 2.0%
  4. January 1, 2022 – 2.5%  

Article 27 Effective Date and Duration of Agreement of the collective agreement would be from November 1, 2018 to October 31, 2022; a term of four (4) years.

Analysis of Viterra’s April 2, 2019 Final Offer

A key agreement renewal bargaining focus by GSU’s bargaining committee was making changes to the so called pay for performance salary system by guaranteeing each employee annual wage increases at least equal to the rise in the cost of living.

In addition, GSU’s Local 1 and 2 bargaining committee attempted to convince Viterra management to agree to additional incremental annual pay increases that would help employees progress towards the maximum of the salary range for their position.

In response to GSU bargaining proposals, Viterra’s April 2 final offer contains some improvement to collective agreement language in relation to extended sick leave, personal family leave, supplementary employment benefits, vacation pay on overtime, shift differentials and aggregate pay increases. However, the final offer does not address the above wage increase objectives identified by union members and pursued by GSU’s bargaining committee.

GSU’s bargaining committee also argued against the reduction of salary grade maximums and salary downgrades applicable to a number of job titles as contained in Viterra’s proposed salary grades and work streams. However, as indicated in its April 2 final offer, Viterra is only prepared to continue to apply the salary grade maximums from the expired agreement to current employees who would otherwise be negatively affected by the proposed new salary grades and/or salary range maximums.  

Your bargaining committee fought hard to obtain wage increases and a better salary system for all employees. We were not able to convince Viterra management of the worthiness the union bargaining proposals on these subjects. For these reasons GSU’s Local 1 and 2 bargaining committee is not making any recommendation on whether union members should vote to accept or reject Viterra’s April 2, 2019 final offer.

If Viterra’s philosophy in relation to pay for performance salary system is going to change, it is clear to your GSU bargaining committee that a clear and overwhelming commitment to action by union members is required.

It is your bargaining committee’s sincere belief that the members of Locals 1 and 2 are best positioned to determine whether Viterra’s final offer is sufficient to form the basis of new collective agreements.

On behalf of the GSU Local 1 and 2 Bargaining Committee,
Hugh Wagner
General Secretary

Questions? Comments? Concerns?

Contact a bargaining committee member directly or email bargaining committee spokesperson Hugh Wagner at gsu@gsu.ca.

SFL News release – Solidarity Committe to support UFCW 1400 striking workers (Saskatoon Co-op)

From: Lori Johb [mailto:l.johb@sfl.sk.ca
Sent: Monday, March 25, 2019 10:02 AM
To: Lori Johb <l.johb@sfl.sk.ca>
Subject: News Release – Solidarity Committee UFCW 1400 
Importance: High

SFL Central Strategy Committee,

Please see below and attached. A motion from the Central Strategy Committee meeting March 21st, 2019.

Please see attached the News Release  regarding the Solidarity Committee that was formed in support of UFCW 1400 striking workers at the Saskatoon Coop and went out this morning. Please share this with your members along with the message you wish to convey to them. We avoided using the word ‘boycott’ as the request was withdrawn, however some will encourage their members to not support any Coop, FCL or FCL Holdings while the strike is on.

For your reference the motion passed at the Central Strategy Committee reads;

Wagner/Burkart
Motion that the SFL support a solidarity campaign urging union members to not shop at Co-ops across Saskatchewan, including FCL and FCL Holdings, until the Saskatoon Co-op has settled its dispute with UFCW 1400 members.
CARRIED

Please let me know if you have questions. I am certain we will have further solidarity actions to follow in the coming days.

In Solidarity,

Lori

Lori Johb, PresidentSaskatchewan Federation of Labour
Email- l.johb@sfl.sk.ca
Website: www.sfl.sk.ca

How an Aggregate Salary Increase works


A number of GSU’s collective agreements refer to aggregate salary increases and recently a number of GSU members have inquired how this approach works. The aggregate increase approach means that the payroll of an employer will increase by an agreed upon minimum amount  (usually expressed as a percentage), but the individual employees’ salary increases may be higher or lower than the aggregate percentage increase.

The following example illustrates how the aggregate approach works. 

  1. Let’s assume the payroll is $1,000 and the company proposes to pay an aggregate salary increase of 2.5%.
  2. The result would be a 2.5% increase to the payroll or $25.
  3. There are two employees. Employee A whose salary is $600 and employee B whose salary is $400.
  4. If both employees received a salary increase of 2.5%, Employee A would get $15 and Employee B would get $10. The payroll would rise by 2.5% or $25.
  5. But, if the company decided that Employee A should receive a 3% salary increase, her/his salary would rise by $18 leaving $7 for employee B (an increase for her/him of 1.75%).
  6. On the other hand, if Employee B was given a 3% salary increase, her/his salary would rise by $12 leaving $13 for Employee A (an increase for her/him of 2.167%).
  7. In any of the above scenarios the aggregate increase to the payroll is 2.5% or $25. However the individual shares will vary.

 As an alternative, GSU has proposed to employers using the aggregate approach to annual salary increases that there should be a guaranteed increase for every employee at least equal to the rise in the consumer price index, 2% for example.

The following example illustrates how GSU’s approach would work. 

  1. The payroll is still $1,000. Employee A’s salary is $600 and Employee B’s salary is $400. The aggregate salary increase would still be 2.5% ($25), but every employee in this example would be guaranteed a salary increase of at least 2%.
  2. Therefore, Employee A would receive a guaranteed salary increase of $12 (600 x 2.0%) and Employee B would receive a salary increase of $8 ($400 x 2.0%). There would still be $5 left to distribute since the aggregate salary increase has to be 2.5% ($25).
  3. The additional $5 could be divided equally between the two employees, or by some other proportion or the entire amount could be given to one employee or the other. Whatever division of the $5 occurs in this example the aggregate payroll still rises by 2.5%.

Bargaining with Viterra to resume March 26

The GSU Local 1 (Viterra Ops) and Local 2 (Viterra Head Office) bargaining committee will resume agreement renewal collective bargaining with Viterra representatives on March 26 and 27.

“Since the last bargaining meeting in February, GSU’s committee has been able to consult with delegates and members from the two locals and we have a renewed sense of their priorities,” said GSU general secretary Hugh Wagner. “The bargaining committee will take the information gathered and put it to work in favour of reaching a bargaining settlement.”

A further update will be issued following the bargaining meetings on March 26 and 27.