VANCOUVER – After four and a half years of contract negotiations with the Telecommunications Workers Union (TWU) and an impasse at the bargaining table, western telco Telus today announced it will stop deducting union dues from employees’ wages (1.2% of an employee’s gross pay) and cease remitting the dues to the TWU.
“This action is the latest in a series of lawful lockout measures Telus has taken to put pressure on the bargaining process and achieve a replacement collective agreement. Telus has taken this action due to the lack of any meaningful progress at the bargaining table as well as the TWU’s current public campaign urging customers to cancel certain Telus services,” says the company’s press release.
The company’s announcement today follows its April 21, 2005 issuance of its comprehensive offer of settlement directly to employees and its April 25, 2005 implementation of certain lockout measures. These included suspending grievance and arbitration activities as well as the operation of several joint union/management committees; suspending the scheduling of accumulated time off and personal days off; suspending payment for the first day of absence for sickness; deferring all wage progression increases; and freezing vacation entitlements at their current levels.
“This additional lockout measure, similar to the ones implemented on April 25, does not prevent team members from reporting for work and/or performing their normal duties. This action will not affect our normal business operations,” says the company. Although it may have an impact on overall morale, we’re thinking.
Telus continues to participate, with the assistance of a federal mediator, in negotiations with the TWU. The company is committed to reaching a settlement that recognizes the needs of its employees, customers and shareholders.
On April 21, 2005, Telus provided copies of its comprehensive offer of settlement directly to employees in a further attempt to bring a successful conclusion to its labour relations situation. The offer would make Telus employees among the best paid telecommunications team in Canada and would increase the company’s ability to compete effectively and provide quality customer service.
Highlights of the offer include:
* Five-year agreement expiring on March 31, 2010.
* Basic wage increases of two per cent for each year of the agreement. In addition to base wage increases, variable pay would be extended to all employees increasing from three per cent of base pay in 2005 to four per cent in 2006 and to five per cent in 2007 and subsequent years.
* Lump sum payments to compensate employees for foregone wage increases equivalent to 5.25 per cent of base wages for each year between 2001 and 2004, including the first quarter of 2005.
Examples: A journeyperson in Alberta would receive $11,485; a customer service representative in B.C. would receive $10,340.
* In Alberta, in addition to base wage increases, variable pay increases, and a lump sum payment to compensate for foregone wages over the past four years, wages for employees in comparable positions in B.C. would be harmonized with B.C. wages over the course of the agreement.
* In British Columbia, in addition to basic wage increases, the introduction of variable pay, a lump sum payment to compensate for foregone wages over the past four years, employees will receive an additional lump sum to compensate for the reduction of nine "Accumulated Time Off" days employees receive each year. The lump sum would range from $6,815 to $10,700 and is equal to 45 days’ pay at the employees’ current daily rate.
* Examples of total incremental (additional) earnings as a result of the financial benefits of this offer include: $52,495 for an operator in Alberta; $51,705 for a journeyperson in B.C.
Other recent developments include:
On Sunday, April 24, 2005 the Canada Industrial Relations Board (CIRB) dismissed an application for interim relief brought by the Telecommunications Workers Union (TWU) seeking to prevent Telus from implementing its lockout measures. The CIRB ruled that preventing Telus from implementing its lockout measures was disproportionate to any alleged harm the TWU may suffer. As a result, Telus was able to legally proceed with the implementation of its lockout measures.
On Friday, April 22, 2005 the Federal Court of Appeal denied a TWU application that challenged Telus’ ability to proceed with the implementation of its notice of lockout measures. The TWU application argued the measures would cause "irreparable harm" to its members. In his ruling, Justice Rothstein stated that he saw no evidence that members would suffer irreparable harm, and ruled in Telus’ favour.
On February 2, 2005, the CIRB released Decision 1193 in which it reversed its ruling of January, 2004 that forced Telus into binding arbitration as a means to resolve this round of negotiations with the TWU. On April 20, the CIRB released the reasons behind its decision, reinforcing its strong preference for the process of free collective bargaining and adding that an order of binding arbitration should only be applied in the most dire of circumstances.
Telus and the TWU have been in contract negotiations for a replacement collective agreement for 13,700 bargaining unit employees since November 1, 2000 as a result of the merger between Telus (Alberta) and BC TELECOM.
