Collective Bargaining A Chief Negotiator s Perspective The New National Bargaining Strategy February 22, 2018 Robert Kirby Financial Management Institute: Manitoba Chapter
Negotiation Rules A New Day
The Relationship Test The most important trip you may take in life is meeting people half way. Henry Boyle
Negotiator s Steps to Success Preparation Aim High Give Yourself Room To Compromise Put Pressure On The Other Negotiator Be Honest But Be Careful Use Concessions Wisely Be Patient Be Willing To Walk Away From Or Back To Negotiations
Labour Relations
Business Partner / Adversarial The industrial world would be a more peaceful place if workers were called in as collaborators in the process of establishing standards and defining shop practices, matters which surely affect their interests and well-being fully as much as they affect those of employers and consumers. Mary Barnett Gilson
Interest Arbitration-Essential Labour Relations Act Fire Paramedic Act No Strike or Lockout The Value of a Negotiated Settlement vs Interest Arbitration Award City of Winnipeg December 2016 Six of Eight Collective Agreements Expired CUPE, WPA, WPSOA, MGEU, UFFW and WAPSO
UFFW Increases vs CPI 90.0% 80.0% 70.0% 60.0% 50.0% CPI Fire 40.0% 30.0% 20.0% 10.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CPI 2.4% 5.4% 7.0% 8.9% 10.9% 13.9% 16.1% 18.5% 21.3% 21.88%22.85%26.41%28.66%31.12%34.58%37.19%40.03% Fire 2.5% 5.1% 9.3% 12.6% 17.1% 20.6% 25.4% 29.8% 35.0% 39.0% 44.6% 51.2% 57.3% 62.5% 67.4% 72.4% 77.6% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 % Increase 2.50% 2.50% 4.00% 3.00% 4.00% 3.00% 4.00% 3.50% 4.00% 3.00% 4.00% 4.50% 4.00% 3.25% 3.00% 3.00% 3.00% Difference 0.03% -0.35% 2.54% 1.22% 2.09% 0.36% 2.06% 1.43% 1.74% 2.43% 3.21% 1.63% 2.45% 1.03% 1.13% 1.67% 1.57% Salary $ 53,638 $ 55,250 $ 55,796 $ 57,460 $ 59,758 $ 61,551 $ 64,013 $ 66,253 $ 68,903 $ 70,971 $ 73,831 $ 77,179 $ 80,297 $ 82,927 $ 85,431 $ 88,011 $ 90,652
WPA Increase vs CPI 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CPI 2.4% 5.4% 7.0% 8.9% 10.9% 13.9% 16.1% 18.5% 21.3% 21.88% 22.85% 26.41% 28.66% 31.12% 34.58% 37.19% 40.03% Police 3.5% 7.2% 8.2% 12.0% 15.7% 19.8% 24.0% 28.3% 33.5% 38.2% 43.0% 49.5% 55.6% 61.0% 66.7% 71.8% 76.9% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CPI 2.50% 2.90% 1.50% 1.80% 1.90% 2.60% 1.90% 2.10% 2.30% 0.60% 0.80% 2.90% 1.60% 2.20% 1.90% 1.30% 1.40% Winnipeg 3.50% 3.50% 1.00% 3.50% 3.30% 3.50% 3.50% 3.50% 4.00% 3.50% 3.50% 4.50% 4.00% 3.50% 3.50% 3.00% 3.00% Difference 1.00% 0.60% -0.5% 1.70% 1.40% 0.90% 1.60% 1.40% 1.70% 2.90% 2.70% 1.60% 2.40% 1.30% 1.60% 1.70% 1.60% Salary 56,658 58,655 61,315 63,338 65,555 67,868 70,246 71,648 75,639 75,639 78,286 81,849 86,858 89,924 93,099 94,029 96,851
UFFW Arbitrated Future Forecast 160.0% 140.0% Cumulative Increases 2000-2016 Actual and Forecast 2017 to 2026 based on Average of Actuals from 2000-2016 CPI CPI and First Class Firefighter Fire 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 CPI Source Stats Canada table 326-0021 Metro Outlook forecast for CPI to 2020, beyond that 2% is estimated Estimates for Police and Fire based on the average wage increase (3.63%) from 2000 to 2016
WPA Arbitrated Future Forecast 160.0% 140.0% WPA Cumulative Increases 2000-2016 Actual and Forecast 2017 to 2026 based on Average of Actuals from 2000-2016 CPI CPI, and WPA WPA 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 CPI Source Stats Canada table 326-0021 Metro Outlook forecast for CPI to 2020, beyond that 2% is estimated Estimates for Police based on the average wage increase (3.70%) from 2000 to 2016
Police Historical Information Interest Arbitration was used in 1988, 1996, 2000, 2003, 2006 and 2010 The Employer and WPA jointly negotiated in all other years
Arbitrator Comparisons Interest arbitrators appear unanimous in their view that a board of arbitration should attempt to replicate the result which would have occurred if the collective bargaining process had not been interrupted by arbitration Re: Beacon Hill Lodges of Canada and Hospital Employees Union 19 L.A.C. 93d) 288 at 303 [Arbitrator Hope]
What is Interest Arbitration In the 1993 Vancouver Police Award by Arbitrator Hope, he noted at (p. 23): all other things being equal, in an interest arbitration wages and benefits will be fixed in accordance with the wages and benefits prevailing in the same or similar occupational groups
Negotiated 1980 to 1987 Four negotiated collective agreements Salary of a 1 st class constable 1979 $21,504 1987 $37,804 Represents an overall wage increase of 75.9% Civilian staff employees received the same wage increases
Interest Arbitration - 1988 Arbitrator Chapman summarized the criteria that the board took into consideration which has been noted in each of the following awards: 1. The salaries paid to police officers in other areas of Canada and in particular in other cities of similar size in a more closely allied area; 2. General salary levels in our community of persons employed in both the public and private sector;
Criteria - Wages 3. Settlements negotiated with other employees of the City of Winnipeg; 4. The general economic climate; 5. The effect that our Award might have on taxpayers in the community; 6. The state of the economy in this community and elsewhere;
Criteria Continued 7. The nature of the position and the skill training required to qualify as well as any risks which may be inherent to the position; and 8. The fact that the members of the Association cannot strike.
Interest Arbitration - 1988 General Wage Increase Uniformed January 24, 1988 2.5% October 24, 1988 2.5% January 24, 1989 1.75% October 24, 1989 1.75% 1 st class constable salary at end of contract was $41,106 General Wage Increase Civilian Staff 1988 3% wage increase 1989 3% wage increase
Negotiated 1990 to 1995 Two Negotiated Collective Agreements (3 years each) 1993 contract saw concessions from WPA primarily in rank differential and sick leave cash out Different wage increase negotiated for Staff 0% Wage Increase in 1993 1 st class constable salary at end of contract in 1995 was $51,324
1995 Vancouver Award - Arbitrator Albertini said, There are no current local conditions that can override the fact that the duties of police officers are unique. They cannot be compared to the typical civic or government employee. The environment in which they perform those duties, the related dangers and the demands and attitude of society are but examples of the difference. It follows that consideration as to salary increases may also be different.
Interest Arbitration - 1996 No General Wage Increase (GWI) for 1996 was awarded No Rank Differential Pay increases No change to Sick Leave/Cash-out Equal pay adjustments for civilian member positions however the Board was clear to note some differences will properly remain with respect to civilians and uniformed Arbitrator imposed the joint shift committee to address scheduling concerns
Negotiated 1996 2000 Based on the 1996 award the parties subsequently negotiated a collective agreement with a 4 year term 0% wage increase in 1996 & 1997 Overall wage increase total of 7.5% for both police component and staff component 1 st class constable salary was $55,276 at end of contract term
Interest Arbitration 2000 2002 General Wage Increase for all: December 24, 2000 2.5% September 24,2001 1.0% December 24, 2001 2.5% September 24, 2002 1.0% No changes to Rank Differential Arbitrator paid close attention to gap between Winnipeg, Calgary and Edmonton 1 st class constable salary was $59,242 at end of contract term
Interest Arbitration 2002 2004 General Wage Increase for all 2003 3.5% 2004 3.3% Night Shift Premium increased from $0.50 to $0.60 per hour effective 2003 Benefit improvements of $203,000 with the cost to City. The City s arbitration costs were $32,249 1 st class constable salary was $63,338 at end of contract term
Negotiated 2004 2006 7% General wage increase for both Police and Staff components Dec 2004 3.5% Oct 2005 1.25% Dec 2005 2.25% No major changes to operational or economic issues 1st class constable salary was $67,868 at end of contract term
Interest Arbitration 2006 2008 General Wage Increase for all: January 2007 3.5% January 2008 2% July 2008 2% Night Shift Premium increase from $0.75 to $0.85 per hour The City s arbitration costs were $121,447 1st class constable salary was $73,081 at end of contract term
Negotiated 2008 2010 2 year term 7% General Wage Increase for all: December 2008 3.5% January 2010 3.5% Introduction of Auxiliary Force Cadets (2 tier policing) 1 st class constable salary was $78,197 at the end of the contract term
Interest Arbitration 2010 2012 General Wage Increase for uniformed and civilian staff: January 2011 2% July 2011 2% January 2012 2% July 2012 2% The City s arbitration costs were $201,717 1 st class constable salary was $85,155 at the end of contract term
Negotiated 2012 2016 13% General Wage Increase for uniformed and civilian staff: 2013 2.0% in Jan and 1.5% in June; 2014 2.0% in Jan and 1.5% in June; 2015 2.0% in Jan and 1.0% in June; January 2016 3% Schedule C-2 1 st class constable salary at the end of contract term was $96,851
Police Salaries 2002-2016 $120,000 Western Cities First-Class Police Annual Salaries $100,000 $80,000 Winnipeg $60,000 Edmonton Calgary Regina $40,000 Saskatoon $20,000 $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Police 2016 2021 Priorities Reduce Overtime Pay for Time Not Worked Civilian Rates of Pay Commensurate to Other Similar Civic Positions (Income disparity) Expansion of Auxiliary Cadet Duties Central Processing Unit Civilian Classification Disaffiliate Police Officer Layoffs from Auxiliary Cadets Shift Scheduling & Emergency Response Cars Wage controls for five civilian classifications 2016 0% 2017 / 2018 / 2019 2.5% End of Dec 2020 / 2021 June 1% December 1%
Winnipeg Police Association
Fire Salaries 2002-2016 $120,000 Western Cities First-Class Firefighter Annual Salaries $100,000 $80,000 Winnipeg $60,000 Edmonton Calgary Regina $40,000 Saskatoon $20,000 $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
United Fire Fighters of Winnipeg
WPSOA JUST GWI 2016-2021
WPSOA Concession Impact
Regional Bargaining Outcomes
Interest Arbitration Comparison
National Bargaining Strategy Video: Interest Arbitration should be Efficient, Transparent and Accountable click here Where do we go from here?
Questions?