City Employees Ratify Contract

Friday, September 19, 2014 - 5:45 PM

The City of St. John’s has been formally notified that CUPE Local 569 (outside workers) and CUPE Local 1289 (inside workers) have voted to ratify a four-year contract. A deal was reached between City and CUPE negotiators on Friday, September 12 and presented by CUPE representatives to the employees this week.
 
“Our hope was to reach a mutually agreeable position before any labour action was taken, and we have achieved that,” said Mayor Dennis O’Keefe. “We feel this deal is fair, not only for our valuable employees but also for the residents of St. John’s.”
 
The new collective agreement will be for four years. Highlights include:

  • An 18 per cent wage increase over four years (5 per cent in 2014; 4 per cent in 2015; 4 per cent in 2016; and 5 per cent in 2017)
  • A prorated signing bonus up to $1000 for all members (depending on service) with a minimum payment of $350
  • Increased shift premiums and an increased meal allowance.

The cost implications for the negotiated wage increases are as follows:

2014                  $1,925,307
2015                  $3,413,479
2016                  $3,190,774
2017                  $3,755,712
2018                  $2,039,932
Total                $14,325,205
 
“Our negotiated salary increases help to bring the City more in line with other employers, particularly in the skilled trades,” said Mayor O’Keefe. “It is our hope that this will not only help us to attract new employees but will also help us retain current employees as well.”
 
On the issue of pensions, all current employees and beneficiaries as at December 31, 2014 will maintain their defined benefit plan as it currently exists for life. 
Current premiums will increase from 7.5 per cent to 8.1 per cent and will be shared with the employer on a 50/50 basis thereafter. Employee shares’ will never exceed 9 per cent  in future years.
New hires effective January 1, 2015 will be entitled to a defined contribution pension plan. For the first 3 years of employment, contributions will be matched by the employer at 6 per cent.  After 3 years, the contribution will rise to 7 per cent. 
 
The impact of higher employee contributions and higher salary increases offset each other over time. Furthermore, the negotiated changes to the pension plan help to secure the plan for members into the future.  The deal also serves to reduce future pension expense for the City.  Within 7-8 years the City is projected to spend less on employee pensions than it would have had the current plan been maintained.  The savings are expected to commence around 2021 and continue to increase significantly on an annual basis.
 
“We are pleased to have a collective agreement with our employees that sets them, and the City, up for success and fiscal stability into the future,” said the Mayor.
 
Media Contact:
Susan Bonnell
Manager, Marketing and Communications
City of St. John's
Phone: 709-576-3906
Cell: 709-690-9285
Email: sbonnell@stjohns.ca