City of Winnipeg workers ratify contract worth $56M

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This article was published 25/10/2022 (1377 days ago), so information in it may no longer be current.

About five thousand members of CUPE Local 500 who work for the City of Winnipeg have ratified a tentative deal that includes a $900 signing bonus for each of them.

The union said the deal, reached just before the strike deadline earlier this month, was accepted by a vote of 75 per cent.

“I think our members deserve better… a lot of (them) are struggling,” said Gord Delbridge, president of Canadian Union of Public Employees Local 500. “This will assist, but they are still taking a major reduction in their standard of living (due to inflation).”

He acknowledged there were naysayers.

“Twenty-five per cent said ‘no.’ Not everyone was happy with it.”

The four-year deal includes a 1.7 per cent general wage increase in year 1 (retroactive to March 2021). A 2.5 per cent hike would follow in year 2, followed by 3.0 per cent in each of years 3 and 4.

In a letter to city council members, Winnipeg’s chief administrative officer Michael Jack estimates the deal will cost the city about $56 million.

The wages and bonus were a compromise considering the high rate of inflation, Delbridge said.

“These are tough economic times… Many of our members are underpaid, compared to market value. The city is going through recruitment and retention issues. It’s a very challenging labour market right now and in order for the city to become a successful organization they need to be a competitor (for workers).”

The signing bonus reflects a lower wage increase in the first year of the four-year deal, which ends in February 2025 due to its retroactive start date, Delbridge said.

However, mayoral candidate Kevin Klein said the deal isn’t great for taxpayers. He was especially critical of the signing bonus, which will cost more than $4 million.

“It’s fairly common when you sign a contract (that) you give somewhat of a bonus but that’s a huge bonus and it gets backdated,” said Klein. “This is another example of leadership not being able to manage… This contract negotiation has been going on for some time. One would have to think we’re paying more because (the) cost of living has certainly increased during the time in which the contract negotiations have been lagging,”

CUPE Local 500’s last contract with the city expired on Feb. 28, 2021.

“The employees have waited almost two years for a contract so I can see where that figure may have come from,” said Klein.

The candidate said he is relieved that Winnipeggers did not have to endure city service disruptions from a strike. The CUPE staff, who came within hours of walking off the job on Oct. 12, provide key services at pools, libraries, 311, public works and water and waste.

“The city seems to be always throwing a Hail Mary to get a contract agreed upon. When you’re consistently in that position, we end up costing taxpayers more,” said Klein.

By contrast, Delbridge said a lower financial offer would have risked the city paying more in the long run and potentially losing more staff to higher-paying jobs elsewhere.

“I think that the neglect of this issue is going to get more expensive. We’re in challenging economic times but there’s also challenges with the labour market,” he said.

City council is expected to cast the final vote on it in December.

The City of Winnipeg declined to comment on the details of the deal on Tuesday since union members were voting on it.

Joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga