‘Historic milestone’ as city, union agree to arbitration if negotiations stall

The City of Winnipeg and its largest union will give an arbitrator the final say on their next collective agreement, if negotiations don’t produce a deal.

The arrangement rules out a strike or lockout, but only for the current round of bargaining, amid some concern the binding process could result in a deal that costs the city more.

In a bargaining update posted online, the Canadian Union of Public Employees Local 500 calls the one-time agreement a “historic milestone” and “major breakthrough.”

“Most importantly, this process means there will be no strike and no lockout during this round of bargaining. Members will continue to provide services to the public while receiving their regular wages and benefits,” the post states.

Gord Delbridge, CUPE local 500’s president, said he believes the deal brings substantial benefits for the city, its residents and union members.

“It’s a win for Winnipeggers, (who won’t see) services lost … if a strike were to occur. It’s a win for our members, knowing they don’t have to be out on a picket line and they can immediately go to arbitration in the event we can’t work out a deal,” said Delbridge. “Our members have been without a wage increase for about 1.5 years now and they most certainly deserve to see a wage increase sooner than later.”

The union represents about 5,000 city staff, including some 911 operators, as well as employees at water and waste, pools, libraries, 311, public works and more.

The union’s last contract with the city expired in February 2025.

Delbridge declined to state the average wage hike CUPE will seek, while suggesting arbitration could help ensure a fair deal.

“I do believe arbitrators have a tendency to be fair and take all aspects into consideration, such as a rate of inflation and (consumer price index),” he said.

Delbridge said negotiations with the city have already been productive, though some sticking points remain.

Coun. Brian Mayes, who previously worked as a labour lawyer, agreed avoiding job disruptions would help ensure city services aren’t interrupted by a labour dispute.

However, the St. Vital councillor noted city officials have often aimed to avoid arbitrated agreements in the past, over fears they could cost millions of dollars more to implement than negotiated deals.

“The cost implications, that’s out of your hands. You’re arguing it in front of a third party … The risk is you might get an award where you’re giving a much bigger wage increase than you planned,” said Mayes.

He said he was also “a bit surprised” municipal and CUPE leaders agreed to the deal, suggesting a strike before Winnipeg’s Oct. 28 election might have appeared “a pretty powerful” option for the union.

Mayes said arbitration is not expected to begin before November.

The decision also removes the need for the city and union to complete an essential services agreement during this round of collective bargaining (since the risk of job disruption is removed).

The two sides have been trying to hammer those rules out since the spring of 2025, after the province approved legislation that requires critical services to be maintained during a strike or lockout. Specifically, employers and unions are required to ensure some essential service workers can continue doing their jobs during any labour action, to avoid disruptions that could create health, safety or environmental risks.

The lack of an essential services agreement between the city and CUPE sparked concerns in October 2022, when the union came within a few hours of a strike with no agreement to keep critical services in place.

At the time, multiple sources feared the absence of municipal employees would increase the risk of sewage spills, boil-water advisories and delays in answering emergency calls.

A tentative labour deal alleviated that risk about four hours before that strike deadline.

A request to speak with Mayor Scott Gillingham about the arbitration agreement was not granted Monday.

In a brief written statement, the mayor said he’s pleased “both parties have agreed on a process that keeps services running for Winnipeggers and avoids the disruption of a strike or job action.”

A request to interview city labour officials was also not granted. In a statement, spokeswoman Julie Dooley said “significant progress” has been made in the negotiations so far.

joyanne.pursaga@freepress.mb.ca

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