cupe strike presentation

Upload: windsorcityblog1

Post on 30-May-2018

225 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/14/2019 CUPE Strike Presentation

    1/114

    1

    Ward 4 Councillors Meeting

    Councillor Ken Lewenza

    Councillor Bill Marra

    Tuesday, November 10, 2009

    Club Alouette

    2418 Central Avenue

  • 8/14/2019 CUPE Strike Presentation

    2/114

    2

    Can We Come Together to Build a Better City?

    By Ken Lewenza Jr.

    The hundred-day civic workers strike earlier this year was one of the

    most difficult and divisive events in our citys history. And the

    repercussion and recriminations from the strike continue even to this

    day, living on in nasty he-said-she-said recriminations that mar our

    deliberations at city council and other civic forums.

    With the perspective that comes with a bit of distance, I want to revisit

    some of the underlying issues both fiscal and social that lay at the

    heart of the conflict. My goal is not to carry on old battles. My goal is

    to consider what we can learn as a community from this destructive andunnecessary confrontation, and how to prevent similar debacles in the

    future.

  • 8/14/2019 CUPE Strike Presentation

    3/114

    3

    Because the hard truth is that public sector agencies in general are going to faceintense fiscal pressures in the next few years, a side-effect of the global financial crisisand resulting recession. Governments at all levels now face sizeable deficits. Wemust learn how to negotiate those fiscal challenges much better than we did inWindsor this year. The consequences, if we dont, will be measured in socialdivision, lost services and, perhaps surprisingly, higher costs.

    Lets take it at face value that the hard-line stance (demanding elimination of post-retirement benefits, or PRBs, for new hires, along with other concessions) taken bythe Citys leadership was motivated by a desire to keep costs in line and reduce thefiscal burden on the City and its taxpayers. (Another possible interpretation of eventsis that getting tough with public sector workers is always a sure vote-getter duringtough economic times.)

    The fundamental question I then ask is this: Was this an effective way to reach a cost-effective collective agreement with the CUPE bargaining unit? In retrospect, it clearlywasnt. In fact, by emphasizing confrontation over cooperation, not only did we sparka long, ugly work stoppage, and drive a wedge through the middle of a communitythat needs to come together right now. We also ended up with a collective agreementthat is clearly more expensive to the City, not less expensive.

  • 8/14/2019 CUPE Strike Presentation

    4/114

    4

    That may seem like a surprising claim, but heres my logic. Weve heard noend of doom-and-gloom actuarial projections regarding the ultimate cost of

    post-retirement health benefits for City workers. But in reality, the fiscalproblem associated with those benefits is not that the benefit itself is

    inherently rich. In reality, the Citys own actuary confirms that the currentservice cost of CUPEs post-retirement benefits is $2.7 million per year which works out to a little more than $1 per hour for all the full-time workerswho get this benefit.

    This seems very modest, compared to all the frightening headlines we saw

    about the Citys $300 million accumulated PRB liability. Because Canadasaccounting rules have only recently changed , and now require cities to reportthese lump sum liabilities, many average citizens (and even those who shouldknow better, like politicians and reporters) misunderstand these numbers.Less than one-quarter of that $300 million liability is associated with theCUPE unit. The annual current service cost of that liability is quite modest.

    And all of that cost is associated with existing employees not new hires.Yet PRBs for the current workforce werent even on the table. It was onlyfor new hires that the City wanted to snatch this benefit away.

  • 8/14/2019 CUPE Strike Presentation

    5/114

  • 8/14/2019 CUPE Strike Presentation

    6/114

    6

    Thats a simple way to address the cost-overhang resulting fromunfunded benefit promises. Instead of battling to the end to take themaway from workers in the future, we should fund them responsibly,sustainably and affordably.

    Even better, by taking this constructive problem-solving approach(rather than going to war), we could have reduced the overall cost ofthe CUPE contract. Early in bargaining I had proposed a status-quoroll-over agreement for this group, and I believe that CUPE officialswere signalling that could be a face-saving solution to a very tough

    round of contract talks. Instead we slipped into a hundred-day conflict,driven by overheated rhetoric about greedy unions, that wontproduce a penny of savings for at least thirty years to come. Yet toeventually get that deal, the City had to sweeten the offer with wageincreases that compound to more than 6 percent over four years. Thiscompares to many employers in Windsor who are presently negotiating

    wage freezes (not surprising, given the current recession). The Citythrew in another $2.8 million in signing bonuses ($2000.00 for full-timers, $1000.00 for part-timers) to seal the deal.

  • 8/14/2019 CUPE Strike Presentation

    7/114

  • 8/14/2019 CUPE Strike Presentation

    8/114

    8

    Needless to say, Windsor has been hit hard enough by the global financialcrisis and the manufacturing meltdown. Then, on top of tens of thousandsof jobs that have disappeared from the private sector, the City theneffectively eliminated another 1800 good jobs for over three months. How

    many millions of dollars of personal income, and how many thousands ofspin-off jobs, were lost by this aggressive stance precisely when ourcommunity could least afford it? We shouldnt be glorifying the savings ofthat needless battle. Rather, we should be regretting its costs monetary,economic, and social.

    As a city councillor , I am concerned both with treating our own employeesfairly, and managing our finances in a responsible, sustainable way. Therewere much better ways to achieve both goals, than through the now-infamous War of 2009.

    Lets hope that as we grapple with fiscal challenges in future years, we find

    better ways to solve our problems by working together instead of battlingeach other in epic confrontations that no-one can win.

    Ken Lewenza Jr. is a member of Windsor City Council

  • 8/14/2019 CUPE Strike Presentation

    9/114

    9

    Understanding the CUPE Strike

    Just as in any major undertaking, a post-audit of what happened is important. Byhonestly looking at what took place, we can build on all of our positives and can learnfrom what we did not do so well so that we can improve in the future.

    My purpose is not to point fingers but rather to let the public know my perspective ofthe 101-day labour dispute. I expect that people may look at the events of the disputefrom a fresh point-of- view after they have had the chance to consider what I have to

    say.It is a different view from that which was provided by our local media, and in particular the Windsor Star, which coloured how Windsorites viewed the labourdispute.

    Both sides did not handle the dispute well and mistakes compounded mistakes.

    In fact, there were opportunities lost during the 101 days that would have allowedboth sides to have reached an agreement by which each side could hold their heads uphigh for achieving a positive result.

  • 8/14/2019 CUPE Strike Presentation

    10/114

    10

    What I intend to help Windsorites understand:

    s What was the strike all about?

    s Was it really about wages and PRBs, OR was it a political strike?

    s Did the City and Taxpayers get the best deal possible?

    s Did the City achieve what they led citizens to believe relative to long

    and short term cost savings?s Was elimination of PRBs the core issue for Citizens?

    OR did the Citizens want us to get the best deal possible, if there was

    one?

    s Were we well served by our major news outlet,

    The Windsor Star?

    s Was the public given proper information about the role of arbitration?

    s Were the consequences to you and the city worth a 101 day strike?

  • 8/14/2019 CUPE Strike Presentation

    11/114

    11

    Why did the so called

    hardlinerson Council fold in a

    one hour span on

    June 17, 2009

    that caused such

    an enormous shift in the

    City's position?

  • 8/14/2019 CUPE Strike Presentation

    12/114

    12

    s Did the City reduce its leverage to reach a negotiated solution with theremaining 70% of its workforce?

    s Does anyone really know what the strike settlement was especially in

    relation to PRBs for new hires?

    s How do we avoid repeating this experience?

    s Answer any questions you may have on this issue.

  • 8/14/2019 CUPE Strike Presentation

    13/114

    13

    LEGEND

    s RED text signifies Councillor Lewenza

    comments/actions/opinions

    s BLACK and/with ITALIC text signifies

    Council Minutes and Motions

    s PURPLE text signifies Windsor Star reporting

  • 8/14/2019 CUPE Strike Presentation

    14/114

    14

    Some ask me:

    "when do you think the strike with CUPE

    could have been avoided?"

    I think going back to 2006 provides a glimpse of the labour

    relations atmosphere, opportunities lost, and is a signal of things

    to come.

    1. Council Minutes, Page 7 Windsor Ontario May 15th, 2006

    2. Post Retirement Benefits - Consultation Process

    3. John Miceli, President and Mike Stamp, CANUE4. Item 9 Post Retirement Benefits - Consultation Process

  • 8/14/2019 CUPE Strike Presentation

    15/114

    15

    1. From the May 15, 2006 Minutes of City Council, Page7:

    John Miceli, President And Mike Stamp, Civic Associationof Non - Union Employees (CANUE) request that item 9.1

    being the report of the City Treasurer dated March 22,

    2006 entitled "Post Retirement Benefits" - Non Union

    Employees" and item 9.2 being the report of the City

    Treasurer dated April 11, 2006 entitled "Post Retirement

    Benefits - Consultation Process" be deferred to allow

    CANUE membership and representatives from local 543

    and 82 an opportunity to be in attendance since it wasCANUE 's understanding that report 9.1 had been

    substituted with report 9.2.

  • 8/14/2019 CUPE Strike Presentation

    16/114

    16

    2. Post Retirement Benefits Consultation Process

    Moved by councillor Lewenza , seconded by Councillor Valentinis,

    That the reports of City Treasurer dated March 22, 2006entitled "Post Retirement Benefits" - Non Union

    Employeesand item 9.2 being the report of the CityTreasurer dated April 11, 2006 entitled "Post Retirement

    Benefits Consultation Process" BE DEFERREDfor oneweek to allow CANUE membership and representatives from 543 and 82 to be in attendance.

    The Motion is put and it is LOST

    Aye Votes: Councillors Lewenza and Valentinis.Nay votes: Councillors Cassivi, Brister, Gignac, and Halberstadt.

    Other councillors in conflict or absent

  • 8/14/2019 CUPE Strike Presentation

    17/114

    17

    3. Item 9.1 from the May 16, 2006 Minutes of City Council:

    John Miceli, President, and Mike Stamp, Civic Association of Non-Union

    Employees (CANUE) appear before Council to express concern that only

    CANUE and none of the other employee bargaining groups were includedin the initiative which will adversely affect the future of non union

    employees and asks for a fair consultive process recognizing the benefit

    costs are of concern and that CANUE welcomes the opportunity to meet

    with Senior Administration to discuss creative ways to reduce the current

    and future obligations through a consultative process.

    This says it all!

    What must not be lost in the discussion is the word "current" as this one

    word represents opportunities lost as a partial solution in dealing with theissues related to post retirement benefits.

  • 8/14/2019 CUPE Strike Presentation

    18/114

    18

    4. Item 9.2 Post Retirement Benefits Consultation Process

    John Miceli, President, and Mike Stamp, Civic Association of Non-UnionEmployees (CANUE) appear before Council stating that CANUE believes there

    is no further need to speak on this matter as it was CANUE's understanding thatthe report on "Post Retirement Benefits - Consultation Process" (Item (.2) was toreplace Item 9.1 and that since CANUE is not a bargaining unit it cannotnegotiate any benefits with the corporation and will deal with any administrativematter at a future date.

    CR252/2006

    Moved by Councillor Brister, seconded by Councillor Cassivi

    Whereas, City Council recognizes the importance of dealing with the escalatingcosts of providing Post Retirement Benefits to the retirees of the Corporation,

    and the need to develop strategies for limiting the financial and budgetaryimplications to the Corporation of continuing to provide these benefits to newemployees: and further, given that City Council recognizes that post retirementbenefits are subject to negotiations with the various employee bargaining units: itis therefore resolved that in order to lead this process that;

  • 8/14/2019 CUPE Strike Presentation

    19/114

    19

    1. All new employees hired by the corporation within the Non Unionemployee group, with a signed offer of employment dated on or after May 16,2006 would be limited in post retirement benefit coverage to age 65.

    2. All New employees hired by the corporation with a signed offer ofemployment dated on or after May 16, 2006 and transferring at some timethereafter into the Non union employee group, would be limited in postretirement benefit coverage to age 65.

    Carried

    Aye votes Councillors Brister, Cassivi, Halberstadt, Valentinis, and GignacNay Votes; Councillors Lewenza, and Postma

    I did not support this strategy, as this approach was predicated on

    confrontation not cooperation, and it ignored any possibility of a

    negotiated settlement that addressed both parties concerns!

  • 8/14/2019 CUPE Strike Presentation

    20/114

  • 8/14/2019 CUPE Strike Presentation

    21/114

    21

    THE STRIKE CHRONOLOGY

    I was the one who introduced the Motion at Council to make the in

    Camera Council Minutes available to the public so Windsorites could

    judge what happened with all of the information in front of them.

    However, the minutes themselves do not demonstrate the dynamics that

    were going on around them. For that, let me give an analysis of them

    from my perspective.

    The best way to do so is to follow the minutes chronologically with

    comments added in. My Intention when I first started to put this

    brief together was to walk you through chronological order that

    provided some insight to as to what was happening behind closed

    doors?

  • 8/14/2019 CUPE Strike Presentation

    22/114

    22

    I also wanted to incorporate submissions by the Windsor Star todemonstrate the role they played during the strike.

    What positions were they taking, what information did they choose toprovide, and how through opinion pieces, editorial cartoons, and dailynews did they attempt to influence public opinion?

    The intent would have been to show that they were not objective,balanced, or fair, and that they very much contributed to prolonging thestrike.

    I decided I did not have to do this once I came across the blog by ChrisVander Doelen so my remarks will be limited from what I intended.

    Chris Vander Doelen Blog

    Kevin and Nicole Cabana

    Dear Kevin, or Nicole: Quit being a cry baby, If you want to go back towork, go back already. I'm not stopping anyone from working.

    As for prolonging the strike, I think that might be true, and it's acompliment to the Windsor Star for representing the interests of itsreaders. If the Mayor and council didn't know public opinion was sostrongly behind them they'd throw in the towel and cave in like previous

    councils did. We are doing our job well, I'd say.

  • 8/14/2019 CUPE Strike Presentation

    23/114

  • 8/14/2019 CUPE Strike Presentation

    24/114

    24

    What the Windsor Star selectively fails to report, is that at the end of

    this motion I comment "that in no way does this motion suggest that I

    support the removal of PRBs." What they also ignore is my position in

    the 2006 and where I consistently supported a new pre-funded PRB

    plan that addressed both parties concerns through negotiations.

    Pre-funding would be similar to funding a pension plan so that when

    an employee retires, money would be immediately available from the

    fund and NOT be a burden on taxpayers at the time. Right now PRBs

    are paid out as part of the City's Operating Budget on a pay as you go

    basis.

  • 8/14/2019 CUPE Strike Presentation

    25/114

    25

    s Net Zero was NOT unique in these negotiations but was a starting pointand part of a strategy used at Windsor Police and with the WindsorUtilities Commission.

    s The intent of this motion was to signal to the unions that it's "not businessas usual"

    s Of course, in neither the Windsor Police nor WUC was this finalresolution. No one ever expected it to be. In both cases local economiccircumstances were recognized by both sides.

    s WUC settled at 1.75% each year of a three year collective agreement.

    Lowest settlement in the Province in this sector!

    s Offsetting these increases were productivity improvements.

    s And it was resolved with out a strike maintaining a healthy labour

    relations environment.

  • 8/14/2019 CUPE Strike Presentation

    26/114

    26

    Examples

    s Little to no lost time claims

    s Absenteeism is a non issue

    s Little to no Grievances

    s A good working relationship

    s Increased Productivity

    Let the truth be told I was mocked by two of my council colleagues

    for the deal being too high and they were critical of me for talking to

    the union.

  • 8/14/2019 CUPE Strike Presentation

    27/114

    27

    December 15, 2008:

    Moved by Councillor Gignac, seconded by Councillor Lewenza:

    THATAdministrationBE DIRECTED to file for

    conciliation with respect to the current collective

    bargaining process being undertaken with CUPE

    locals 82 and 543.

    CARRIED UNANIMOUSLY.

  • 8/14/2019 CUPE Strike Presentation

    28/114

    28

    Tough Talk. In hindsight, it may have been a mistake since more time

    should have been taken to explore options. There were no work slow downs

    that would cause the city concern, thus providing no rush to bring this to a

    head.

    January 9 2009, The Star reports that the city has opted to file for

    conciliation after only four negotiating sessions.

    Again, in hindsight, it may have been a mistake.

    This is hardly the way to demonstrate to a Union that the City wants to talk

    to avoid a labour dispute. In fact, the opposite message is being given.

  • 8/14/2019 CUPE Strike Presentation

    29/114

    29

    February 9, 2009:

    Moved by Councillor Gignac, seconded by Councillor Valentinis

    THATthe verbal update report from the General

    Manager of Corporate Services and the Executive

    Director of Human Resources regarding labournegotiationsBE RECEIVEDfor information.

    CARRIED UNANIMOUSLY.

  • 8/14/2019 CUPE Strike Presentation

    30/114

    30

    March 24th 2009 - Conciliation talks break down, setting the stage for

    a work stoppage in mid April. Mayor Eddie Francis says services will

    still be delivered in the event of a strike as city managers were

    preparing "perhaps one of the most comprehensive plans this

    corporation has ever seen in terms of contingency planning."

    Again, this was also a significant revelation as it indicates the City is

    fully expecting a work disruption and perhaps can be interpreted as

    putting more effort into a contingency plan instead of focusing on an

    agreement!

  • 8/14/2019 CUPE Strike Presentation

    31/114

    31

    April 6, 2009:

    Moved by Councillor Jones, seconded by Councillor Marra:

    THATAdministrationREQUESTan actuarial report

    with respect to the effect of capping Post

    Retirement Benefits at the age of 65 for all new

    employees hired after January 1, 2009 for Local 543 andLocal 82 and to report back to Council.

    CARRIED.

    Councillors Halberstadt, Gignac,Valentinis and Mayor Francis voting

    nay. Councillor Lewenza was absent for the vote.

    CUPE achieved Post Retirement Benefits to the age of 65

  • 8/14/2019 CUPE Strike Presentation

    32/114

    32

    Moved by Councillor Brister, seconded by Councillor Gignac,

    THATthe verbal update report from the General

    Manager of Corporate Services and the Executive

    Director of Human Resources regarding labour

    negotiationsBE RECEIVED for information.

    CARRIED UNANIMOUSLY.

  • 8/14/2019 CUPE Strike Presentation

    33/114

    33

    April 12 2009 Doug Schmidt

    Citing tough economic times, Windsor wants its unionized

    workers to

    accept a four-year wage freeze and agree to a lower set of

    benefits for all newer hires, says Canadian Union of PublicEmployees, representing about 1800 municipal workers.

    Lots of Rhetoric!

  • 8/14/2019 CUPE Strike Presentation

    34/114

    34

    April 14 2009 Windsor Star

    "The two sides are negotiating down to a deadline at the end of the

    week that spokespeople say will end in either a strike or a lockout for

    the 1,776 members of CUPE Local 543 and 82"

    s There is going to be a work disruption!

    s I was very surprised and disappointed that CUPE went on strike.

    s City held hostage by not one side, but because of the inability to find asolution.

    Both Wood, representing almost 400 outside workers, and CUPE

    Local 543 president Jean Fox, Representing 1,400 inside workers, said

    recent conciliation talks broke down in part because city negotiationswere offering nothing but contract cuts.

  • 8/14/2019 CUPE Strike Presentation

    35/114

  • 8/14/2019 CUPE Strike Presentation

    36/114

    36

    s This April 15th motion signals a compromise that could have provided awin-win for both sides. The issue of PRBs for new hires was NOT animmediate concern since the City will probably not be hiring new employeesfor years. Staff will be reduced by attrition and probably not be replaced.

    s It is my firm belief that with all the enormous cost estimates thrown around

    the issue of PRBs, even though CUPE's share was only 30% of them, becamethe lightning rod for the strike. I am certain that the public really did notknow how to understand the issue or put those numbers in perspective. Thesame could even be said for some Councillors.

    s It could have opened the door to many possible scenarios to be negotiated onwhat a possible PRB plan could look like and how it could be funded.

    s Through out negotiations CUPE offered many scenarios which were deniedas non negotiable. Example - 50/50 split, Benefits to age 71, etc.

    s This hard line stance ignored the possibility of finding immediate savings tothe City as oppose to waiting 30 - 35yrs before savings started to materializefor the Corporation and Taxpayers.

  • 8/14/2019 CUPE Strike Presentation

    37/114

    37

    s Example - Savings could have been found in the current benefit plans ofexisting workers and retirees, similar to what was done in the big three.And what was suggested by CANUE in 2006.

    s

    Benefit plans could be capped, with future adjustments to be made inbargaining that is relative to present day environment and ability to pay.Thus avoiding over inflated actuarial projections and legacy costs ofemployees yet to be hired.

    s Moreover, there was an impact on other non - CUPE union workers.

    s By avoiding any chance of finding a negotiated settlement that addresses

    the needs of both sides, the City's leverage in trying to mirror thosechanges, that may be seen as an acceptable compromise, with the other70% of our workforce was limited considerably.

    s It is my very strong opinion the no arbitrator will take PRBs from Police orFire merely because CUPE workers lost them, as these benefits havebecome common throughout the province from which they are compared.

    s The cost of this failed approach cannot be quantified, but must beconsidered in the final agreement which I will speak to at the end!

  • 8/14/2019 CUPE Strike Presentation

    38/114

    38

    What has not been reported is that CUPE achieved the intent of this

    motion during this set of negotiations as the City agreed to administer a

    Pre-funded, self funded, post retirementt benefit plan for new employees.

    This point is interesting and again I will touch on this in the end of the

    presentation.

  • 8/14/2019 CUPE Strike Presentation

    39/114

    39

    2.Moved by Councillor Marra, seconded by Councillor Dilkens:

    THATthe Citys negotiation teamBE DIRECTED to

    return to the table and offer the following to CUPE

    Local 82:

    Stronger language in the guarantee being

    given to protect the post retirementbenefits of current employees; and Post

    Retirement Benefits for new hires hired

    after January 1, 2009 to the age of 65.

    CARRIED.

    Councillors Postma, Lewenza and Jones voting nay.

  • 8/14/2019 CUPE Strike Presentation

    40/114

  • 8/14/2019 CUPE Strike Presentation

    41/114

    41

    4. Moved by Councillor Hatfield, seconded by Councillor Lewenza:

    THATthe Citys negotiating team BE GIVEN AUTHORITY

    to offer job security to local 82 for each year of the term ofthe contract to be negotiated.

    CARRIED.

    Councillors Gignac and Valentinis voting nay.

    Side note as strike begins

    Regardless of what side youre on in Collective bargaining one of the

    primary goals is to achieve the best agreement possible with the least

    amount of pain!

  • 8/14/2019 CUPE Strike Presentation

    42/114

    42

    April 18th 2009 by Monica Wolfson

    Local 82 staff were seeking the same $500.00 per employee lump sum

    payment and wage increases . The deal would have cost the city

    $720,000 and amounted to a 4% pay hike over the two-year contract.

  • 8/14/2019 CUPE Strike Presentation

    43/114

    43

    Cost to Citizens: What is CUPE's asking for?

    s signing bonus $900.000 one time payment of $8.00 perhousehold

    s 2% in 2009 = $10.00 per house hold

    s 2% in 2010 = $10.00 per house hold

    s No solution to PRBs

    Even though I think this offer is inflated as their is no solution to

    PRBs in sight. It does provide a glimpse of What CUPE is looking for.

  • 8/14/2019 CUPE Strike Presentation

    44/114

    44

    Fox said negotiations took a bizarre turn Friday night

    when the city proposed the union give up the fight on post-

    retirement benefits for new hires and then the city would

    reveal wage demands for employees.

    s Not a way to bargain. Limits opportunity to find a solution

    that both sides might be able to accept within the over all

    package. What's concerning is who delivered thismessage?

    s As City Council gave no direction to discuss any move

    away from net zero.

  • 8/14/2019 CUPE Strike Presentation

    45/114

  • 8/14/2019 CUPE Strike Presentation

    46/114

    46

    April 18, 2009:

    Moved by Councillor Dilkens, seconded by Councillor Postma:

    THATCity CouncilREAFFIRMSits support for theCitys negotiation team.

    CARRIED UNANIMOUSLY.

    Doug Schmidt and Monica Wolfson April 20, 2009:

    Jim Wood, president of CUPE local 82 representing almost 400outside workers, said "if the city doesn't change its position oncapping retirement benefits for new hires, "were going to be out here

    in August."

    f l ik hi h l

  • 8/14/2019 CUPE Strike Presentation

    47/114

    47

    Consequences of a long Strike which I also

    predicted weeks before!

    s 1,800 jobs affectively eliminated for 101 days

    s How many millions of dollars of personal income and how many

    thousands of spin off jobs were lost during this time

    s Citizen's being inconvenienced by lack of Municipal Services

    s Employee Moral

    s Poor labour relations moving forward

    s Image of City

    s Community Division

    s City's reputations Costs can't be measured!

    April 20 2009:

  • 8/14/2019 CUPE Strike Presentation

    48/114

    48

    April 20, 2009:

    Open Motion. Moved by Councillor Brister, seconded by Councillor Marra:

    a) THATCity CouncilREQUESTSthat:

    a) Sid Ryan, President of CUPE Ontario, meet with thenegotiating teams for CUPE Locals 82 and 543, and thatCity Council will meet in closed session immediately after itsregular public meeting on Monday, April 20, 2009, todiscuss the current labour negotiations with CUPE Locals 82

    and 543; andb) THATsubsequent to the above noted meetings, Mayor Francis

    and Mr. RyanMEETin order to discuss the current labournegotiations between the Corporation of the City of Windsorand CUPE Locals 82 and 543.

    CARRIED. Councillor Valentinis and Jones voting nay.

    Moved by Councillor Marra, Seconded by Councillor Dilkens:

  • 8/14/2019 CUPE Strike Presentation

    49/114

    49

    THATthe report of the City Clerk dated April 20, 2009 regarding Councildirection regarding labour negotiations BE RECEIVED FOR INFORMATION;and

    THAT COUNCIL CONFIRM and RATIFY its decision TO CONFIRM that alldirections given to the negotiating team by Windsor City Council at its in camerameeting held Wednesday, April 15, 2009 respecting Local 82 negotiations alsoapply to Local 543 negotiations, including specifically:

    i) The direction regarding extending post retirement benefits to age 65;

    ii) Flexibility in offering a 2-year contract term;

    Offering job security for employees hired in 1992 and 1993;The AuthorityTO OFFER a lump sum payment which would

    be packaged with the post retirement benefits issue.

    AND THAT the amount of the lump sum be brought before Council for

    ratification, via email poll if necessary, before a final agreement is made.CARRIED. Councillors Lewenza and Gignac voting nay.

    Moved by Councillor Marra seconded by Councillor Dilkens:

  • 8/14/2019 CUPE Strike Presentation

    50/114

    50

    Moved by Councillor Marra, seconded by Councillor Dilkens:

    THATthe report of the City Clerk dated April 20, 2009 regardingCouncil direction regarding labour negotiations BE RECEIVED

    for information; and

    THAT Council CONFIRM andRATIFY its decision TOCONFIRM its previous directions of April 15, 2009 and

    April 17, 2009 regarding offering no wage increase to CUPE Locals 82 and 543 respectively and its further direction to thenegotiating team to offer a lump sum payment to be packagedwith the issue of elimination of post retirement benefits

    past the age of 65 for new employees hired on or after January 1,2009, provided that the amount of the lump sum be broughtbefore Council for ratification, via email poll if necessary,

    before a final agreement is made.CARRIED.

    A il 24 2009

  • 8/14/2019 CUPE Strike Presentation

    51/114

    51

    April 24, 2009:Moved by Councillor Lewenza, seconded by Councillor Jones:

    THATthe Citys negotiating Committee BE DIRECTEDto:

    remove the issue of ending post retirement benefits past the age of

    65 for new employees in the negotiations with CUPE Locals 82and 543, and; offer the Union negotiating committees the commitmentto form a future Committee comprised of Union andManagement representatives which Committee will investigate theconcept of new employees funding their own post retirementbenefits past the age of 65, and maintain the Citys position on all other

    issues being negotiated.MOTION DOES NOT CARRY.

    Councillors Postma, Lewenza, Hatfield, Marra and Jones voting aye.

    Councillors Brister, Halberstadt, Gignac, Valentinis, Dilkens and Mayor Francisvoting nay.

    By Doug Schmidt The Windsor Star ***** 29 2009

  • 8/14/2019 CUPE Strike Presentation

    52/114

    52

    By Doug Schmidt, The Windsor Star ***** 29, 2009

    Lewenza argued that revealing how councillors voted on various

    positions taken during the bitter strike would show how opportunities

    were missed early on in the process. And he railed Monday nightagainst media reporting during the divisive strike, saying "the votes

    reveal a different story."

    But Francis said the only thing the closed-door motions reveal was

    how consistent council remained in sticking to its core demand of

    getting rid of post-retirement benefits for new employees. He said they

    also prove that what was communicated to the union and residents

    during the strike was "clearly" the same as what council was deciding

    behind closed doors

  • 8/14/2019 CUPE Strike Presentation

    53/114

    53

    s I supported this motion because it provided an opportunity to move towards amore cooperative approach.

    s It was an opportunity to avoid a strike and all the negative consequences that along dispute would bring.

    s It is expected that the city is not going to hire at any significant level in the nextfive years. No Hurry to find a solution to a 50yr dilemma, other than maybe ashort term political one.

    s Finding a solution to post retirement benefits issue is a lot easier than all the

    exaggeration and rhetoric that we were hearing.

    s City employees were already indicating that they would be prepared to makecompromise's that would address the City's concerns.

    s And once again this motion was predicated on maintaining the city's position onall other issues. Namely Net Zero.

  • 8/14/2019 CUPE Strike Presentation

    54/114

    54

    By Doug Schmidt, The Windsor Star September 29, 2009

    Mayor Eddie Francis "Ken Lewenza is absolutely right, had I

    decided to cave and ignore the wishes of the residents ofWindsor," said Francis. "But you don't go into a strike saying

    this is your core issue and then cave after a week," he added,

    pointing to council's strengthening resolve on the issue as the

    strike dragged on.

    Lewenza has said the mayor could have shown leadership and

    ended the strike earlier, but Francis said that the longer the

    strike lasted, the more council "heard from the public very

    loudly and very clearly" not to give in.

  • 8/14/2019 CUPE Strike Presentation

    55/114

    55

    Moved by Councillor Brister, seconded by Councillor Gignac:

    THAT City Council RE-AFFIRMS its previous

    direction given to the Citys negotiating team.

    CARRIED.

    Councillors Postma, Lewenza and Jones voting nay.

  • 8/14/2019 CUPE Strike Presentation

    56/114

    56

    s

    Very early on in negotiations I told City Council, If you believe youcan achieve removing Post Retirement Benefits from new employeesand maintain a net zero, than good for you.

    s But if at the end of a four month strike if you put money on the table

    than shame on you, as this money can be used as a key to unlockingthe solution to the Post Retirement Benefit issue."

    s This quote can be validated by our CEO and others in the room whohave a good memory.

  • 8/14/2019 CUPE Strike Presentation

    57/114

    57

    April 27, 2009:

    Moved by Councillor Postma, seconded by Councillor

    Valentinis:

    THATthe verbal update report from the GeneralManager of Corporate Services and the

    Executive Director of Human Resources regarding

    labour negotiationsBE RECEIVEDfor information.

    CARRIED UNANIMOUSLY.

  • 8/14/2019 CUPE Strike Presentation

    58/114

    Thi i th k th t h ld h b h i i 2006

  • 8/14/2019 CUPE Strike Presentation

    59/114

    59

    This is the work that should have been happening in 2006

    We are hearing figures that report each retiree costs

    $100,000 per and the Citys liability is $300,000,000.00

    and escalating. What they do not explain is this figure is predicated on

    every person retiring at 55 and living to 96.

    That our PRB Costs are escalating.

    What they do not say is the largest cost driver is due to the40% of our employees who will be eligible to retire in the

    next 5 yrs.

    s Going after new hires is a shell game and does not address

    the issue of City ignoring these unfunded liabilities for thelast 60 years.

  • 8/14/2019 CUPE Strike Presentation

    60/114

    60

    May 11, 2009:

    Moved by Councillor Jones, seconded by Councillor Postma:

    THATthe Citys negotiating teamREMOVEfrom thebargaining table the issue of ending employer paid postretirement benefits past the age of 65 for new employees

    hired on or after January 1, 2009 in the current negotiationswith CUPE Local 82.

    MOTION DOES NOT CARRY.

    Councillors Jones, Lewenza and Postma voting aye.Councillors Brister, Halberstadt, Gignac, Hatfield, Marra, Valentinis, Dilkens

    voting nay.

    Mo ed b Co ncillor Le en a No Seconder as

  • 8/14/2019 CUPE Strike Presentation

    61/114

    61

    Moved by Councillor Lewenza, No Seconder asa result the motion was never on the floor forconsideration and is included here only for sake of

    completeness:THATCUPE Locals 82 and 543BE PROVIDED

    the option of retaining employer paid postretirement benefits for new employees hired on or

    after January 1, 2009 if they will agree to no wageincreases for the term of a two year contract OR theoption of ending employer paid post retirementbenefits for new employees hired on or after January 1,2009 and receiving a 2% wage increase in year

    1 of a two year contract and a further 2% wageincrease in year 2 of the contract.

    NO SECONDER FOR THE MOTION

  • 8/14/2019 CUPE Strike Presentation

    62/114

    62

    s I put this motion forward in attempt to flush out if 2yr status

    quo collective agreement could be accepted by either CUPE

    or the City.

    s This motion provided options to both sides.

    s CUPE could save face by maintaining their core issue.

    s The City would achieve resolving their legacy cost Issues for

    future employees and would be provided With pre funded

    options that are affordable and Sustainable.

    s The City would have a negotiated solution that

    might be better considered by the other 70% of our

    workforce.s The City would have a negotiated solution that might be

    better considered by the other 70% of our workforce.

  • 8/14/2019 CUPE Strike Presentation

    63/114

    63

    s The City could pre fund this benefit at 100% which is still

    less expensive to tax payers than what taxpayers paid out

    in the final agreement.

    s Or start the process of phasing in contributions similar to

    what we do with OMERS, thus providing the option to

    defer passing on increased costs to the tax payer beyond a

    level of what is needed today.

    s As an example if the City applied just 1% to a PRB fundwhich equals 26 cents per hour, per employee, starting

    today. And the new employee contributes 25 cents per

    hour when they start. By using all the city's actuary

    assumptions you have a fully funded PRB plan to the year2072!

    s Cost per house holds $5.00 per year!

  • 8/14/2019 CUPE Strike Presentation

    64/114

    64

    Special note

    Understanding the numbers:

    s Cost of 1% CUPE increase to the city is $750,000 yr

    s 1% average increase to a CUPE member is 26 centss If we multiply 750,000 to 35yrs = $26,250,000

    s I assembled this figure to help people better understand the

    long term cost of a wage increase so they can be compared it

    to the long term cost of pre funding a PRB plan for newemployees.

    Moved by Councillor Hatfield seconded by Councillor

  • 8/14/2019 CUPE Strike Presentation

    65/114

    65

    Moved by Councillor Hatfield, seconded by CouncillorLewenza:

    THATthe issue ending employer paid post retirement

    benefits for new employees hired on or after January 1, 2009BE REMOVED from the bargaining table and that the following terms be offered to CUPE Local 82:

    s $1000.00 lump sum payment to all full time employees in year 1of a three year contract;

    s 2% wage increase in year 2 of the contract; ands 2% wage increase in year 3 of the contract.

    MOTION DOES NOT CARRY

    Councillors Postma, Lewenza, Hatfield and Jones voting aye.Councillors Brister, Halberstadt, Gignac, Marra, Valentinis, Dilkens and Mayor

    Francis voting nay.

  • 8/14/2019 CUPE Strike Presentation

    66/114

    66

    s This motion is even better for the City than the one I

    previously introduced as it was a 3yr deal.

    s This deal averages out at 1.3% per year as there is no

    increase in the first year and the lump sum is not

    compounding.

    s As for CUPE, this deal provides them options

    s They would have had enough money to self fund PRBs in

    their entirety with money left over for wage increases.

    s How they directed the money or phased it in would have

    been up to them.

  • 8/14/2019 CUPE Strike Presentation

    67/114

    U d t di th b i

  • 8/14/2019 CUPE Strike Presentation

    68/114

    68

    Understanding the numbers again:

    s For every 1% increase to CUPE is a $750,000 charge to the

    City's operating Budget.s This means an average increase to each home of $5.00 per

    household.

    s Over 35 years at 1% this figure is $26,250,000

    s Over 35 years at 4% this figure is $105, 000,000s The cost of this agreement over 35 years is $105,000,000

    s Signing bonus not included in the figure, or compounding

    costs of future wage increases

    s Compare this to the agreement that was signed three monthslater.

    Moved by Councillor Halberstadt, seconded by Councillor Gignac:

    THAT City Council ACCEPT the recommendation of the General

  • 8/14/2019 CUPE Strike Presentation

    69/114

    69

    THATCity CouncilACCEPTthe recommendation of the GeneralManager of Corporate Services regarding a further offer to CUPE Local82:

    s Three year contract.

    s

    No wage increases.s ODA increases on a net zero basis

    s Job Security for the life of the contract;

    s Lump Sum payment of $1000 for all full time employees/$500 for all part timeemployees.

    CARRIED.

    Councillors Postma, Lewenza, Hatfield and Jones voting nay.

    Moved by Councillor Marra, seconded by Councillor Brister:

    THATthe same termsBE OFFERED to CUPE Local 543.

    CARRIED.

    Councillors Postma, Lewenza, Hatfield and Jones voting nay.

    M 12 2009

  • 8/14/2019 CUPE Strike Presentation

    70/114

    70

    May 12, 2009

    The following email poll was sent:

    The Mayor has asked that Council be polled for its'direction on a further negotiation issue with regards toCUPE Local 543. As you know, Council approved offeringan incentive payment to all Regular Full Time CUPE 543members in the amount of $1000 and $500 to Regular PartTime Members. As the full membership will be aware ofthis offer the negotiating team would like authorization tooffer an incentive payment of $250 to each member of the

    following remaining employee groups

    -Temporary Full Time (41 employees)-Temporary Part Time (55 employees)

    - Seasonal Recs (445 employees)

  • 8/14/2019 CUPE Strike Presentation

    71/114

    71

    s All of these employees are voting members with equal votingrights.

    s The total additional cost to offer this payment, in addition to

    the approx. 1.2 million approved last night is $135,250.00.

    s Please indicate if you are in favour or opposed to this paymentby return email at your earliest convenience.

    s The following were the replies:

    All in favour except Councillor Brister

  • 8/14/2019 CUPE Strike Presentation

    72/114

    72

    May 19, 2009

    Moved by Councillor Hatfield, seconded byCouncillor Jones

    THATthe Citys negotiating teamBE SENTBACK to the bargaining table with the flexibility tonegotiate the best deal possible on behalf of the tax

    payers and to bring that deal back to City Council forratification.

    CARRIED.

    Councillors, Brister, Halberstadt, Gignac voting nay.Francis does not vote.

    Why no questions about this vote?

    Special note - George King

  • 8/14/2019 CUPE Strike Presentation

    73/114

    73

    Special note George King

    At one point I made the suggestion that the City bring inGeorge King. This may surprise people as George King is

    usually the representative of choice by employers throughoutour region. The thought process behind this suggestion Georgehas the experience to get a deal done and get to the point withthe least amount of pain. I also think he could provide muchneeded advice to City Councillors with little to no experience

    in collective bargaining.Although this suggestion was not supported, George did play arole working with administration and the Mayor, where I firmlybelieve his skills were not utilized towards achieving acollective agreement.

    Dilkens was absent for the vote.

  • 8/14/2019 CUPE Strike Presentation

    74/114

    74

    Rita Poliakov Windsor Star May 24 2009

    Jim Wood, he added in one of the offers,

    the union proposed a cost sharing plan for

    post retirement benefits, but both partiescould not come to an agreement.

    -- 50/50 cost share or benefits to 71.

  • 8/14/2019 CUPE Strike Presentation

    75/114

    75

    May 25, 2009

    Moved by Councillor Gignac, seconded by Councillor

    Halberstadt

    THATCity CouncilDOES NOT AGREEto submit

    to binding arbitration in the current labournegotiations and that City Council continues to support a

    resolution made in Windsor, for Windsor.

    CARRIED UNANIMOUSLY

    Councillor Jones absent for the vote.

  • 8/14/2019 CUPE Strike Presentation

    76/114

    76

    At this point I did not support arbitration because I

    was under the mistaken impression that the City's

    economic position would not be taken into

    consideration. Also from my knowledge it isalways better to get an agreement that you can live

    with vs turning your destiny over to an arbitrator.

  • 8/14/2019 CUPE Strike Presentation

    77/114

    77

    Moved by Councillor Gignac, seconded by

    Councillor Lewenza,

    THATCity CouncilMAINTAINSits current

    position on the offer of job security for additional

    years mirroring the term of the contract but

    emphasizes that there is no discussion or consideration onthe issue of a guaranteed work force.

    CARRIED UNANIMOUSLY.

    Councillor Jones absent for the vote.

  • 8/14/2019 CUPE Strike Presentation

    78/114

    78

    June 1, 2009

    Moved by Councillor Jones, seconded byCouncillorPostma:

    THATthe CityPROCEED to interest arbitration

    pursuant to section 40 of the Ontario Labour Relations

    Act, as amended provided that the issues tobe discussed and the parameters for resolution be

    agreed upon between the City and CUPE Locals 82

    and 543.

    MOTION DOES NOT CARRY.

    Councillors Postma, Lewenza and Jones voting aye.

  • 8/14/2019 CUPE Strike Presentation

    79/114

    79

    Arbitration

    ARBITRATIONARBITRATION

  • 8/14/2019 CUPE Strike Presentation

    80/114

    80

    ONMayor Eddie Francis:

    Francis said he's aware of the growing irritation among Windsor taxpayersabout the lack of service.

    "But at the same time, I don't want a group of irate taxpayers knocking onour door saying, 'Why'd you give away the farm?'

    We have a financial responsibility to the corporation..."

    It is my opinion not to leave this in the hands of a third party that's 400 or500 kilometres away "It is the responsibility of the parties to reach anagreement. The city of Windsor is prepared to sit down and reach an

    agreement."

    "The history of arbitrators is one of giving away the farm -- they're knownto give away the farm."

  • 8/14/2019 CUPE Strike Presentation

    81/114

  • 8/14/2019 CUPE Strike Presentation

    82/114

    Here is a local arbitrated ruling that was delivered recently betweenWi d R i l H i l d h I i l B h h d f

  • 8/14/2019 CUPE Strike Presentation

    83/114

    83

    Windsor Regional Hospital and the International Brotherhood ofElectrical Workers, local 636. Compare that result with what CUPEreceived:

    "Additionally, the board has considered the general economicconditions in Canada and Ontario, and the specific economic situationof Windsor. With respect to the latter point in particular we are of theview that the local economic difficulties, and the influence they willhave on the funds available to the employer, aside from Provincial

    funding, must seriously be considered."Accordingly, the Board Awards and Orders as follows:

    Wages

    March 31st 2008. An across the board increase of 3%

    March 31, 2009. An across the board increase of 0.5%

    April 1, 2009. An across the board increase of 1%

    October 1, 2009 An across the board increase of .75%

    AM 800 Lynn Martin Show - June 2nd 2009

  • 8/14/2019 CUPE Strike Presentation

    84/114

    84

    On June 2, 2009 I did a three hour live call in show, two days prior to theJune 4th ward meeting with constituents.

    One of the issues that were raised was arbitration.

    Donald McArthur June 5th 2009

    Constituents urged council to end the strike by sending it to binding third-party arbitration.

    Lewenza held out hope for a negotiated settlement.

    The reason for this change of position once again was it was very clear thattheir would never be enough votes around the council table to entertain this

    direction. I also think by continuing to raise this issue would have been adistraction from both sides focusing on working towards a collectiveagreement.

    We're very close to a made in Windsor Solution" said Lewenza. A very small

  • 8/14/2019 CUPE Strike Presentation

    85/114

    85

    contribution from the employee and a very small contribution from thecorporation and you have an agreement. The solution is a lot easier than thecraziness that's gone on."

    Barry Suszek, a striking building inspector who described himself as a "proudcity of Windsor worker," said the concept is definitely worth exploring. If that'swhat it takes, lets get it done," he said. "This strike is killing me and everyoneelse in the city."

    July 18th 2009 Donald McArthur CUPE Urges arbitration:

    City sees opportunity in mediator

    "There was good progress and an admission that both sides have madetremendous mistakes throughout the process" said Ward 4 Coun. Ken Lewenza

    of the meeting. "There's a feeling of cautious optimism that we can get a dealonce we tone down the rhetoric."

    At this meeting I spoke about the urgency to get a deal done.

    W h d 1800 h d d l t ll ti h k d 3 t 4 i ff j b

  • 8/14/2019 CUPE Strike Presentation

    86/114

    86

    We had 1800 hundred people not collecting a pay check and 3 to 4 spin off jobsfor every public sector worker.

    Fox called on Francis to step aside and send the issue to arbitration because

    negotiations have been "severely flawed and tainted."

    She received backing from an unlikely source--- Catherine Swift, president of theCanadian Federation of Independent Business. In a news release expressing her"outrage" at the union's rejection of the city's offer, Swift called on the province tolegislate the striking workers back on the job.

    "Before the nay Sayers try to dissuade you from taking a stronger position, citingarbitration as a more costly option, the province can and does set parametersaround arbitrated settlements, including the ability of the employer to pay," shewrote. "As we have pointed out to you before , the City of Windsor has a strongcase in protecting its taxpayers from the gold-plated demands of unions."

    **Side Note--Maybe a little late for this contribution

    Windsor Star Editorial CUPE strike A look at the

  • 8/14/2019 CUPE Strike Presentation

    87/114

    87

    Windsor Star Editorial CUPE strike A look at theclaims June 6 2009

    Tension continues to rise around the CUPE strike. Tax dollars are

    involved and many have entered the discussion. Our views on thestrike outlined below in an effort to stimulate further thought and toadvance the discussion. We acknowledge that in these matters, ourpositions usually come from a business perspective.

    What is the stake of the strikers in retiree benefits for future hires?

    They are the only ones without a stake in benefits for future hires.Almost everyone else is a potential hire.It seems unreasonable thatcurrent employees should take such a strong position when they arethe only ones without a real stake in the issue. In this particular case, itis likely most stakeholders would prefer that they worry aboutthemselves and let us worry about ourselves.

    If CUPE were to accept this logic, all the terms and conditions ofemployment would be under attack for new employees, not to mentioncreate a division in the workplace.

  • 8/14/2019 CUPE Strike Presentation

    88/114

    June 17, 2009

  • 8/14/2019 CUPE Strike Presentation

    89/114

    89

    A Critical and substantial shift!

    The leak occurred on June 17, 2009. The numbers that the City's NegotiatingTeam reported to City Council on that date were from an offer from CUPE,

    which they wanted presented to City Council:

    Three year deal.

    Current ODA each year of the collective agreement.

    No post retirement benefits for new hires.

    Lump sum payment in 2009 of $3,000 for full-time and $1,500 for part-time employees.

    Wage increases: January 1, 2010 = 1.75%

    - January 1, 2011 = 2.65%

    - 4.4% wage increase over 3yr agreement

    or

    -1.46% average wage increase per year

    Moved by Councillor Postma, seconded by CouncillorMarra:

  • 8/14/2019 CUPE Strike Presentation

    90/114

    90

    Marra:

    THATthe verbal update dated June 17, 2009 from theNegotiating Team respecting Labour negotiations

    with CUPE Local 82BE RECEIVED.

    CARRIED UNANIMOUSLY.

    Moved by Councillor Postma, seconded by CouncillorMarra,

    THATCouncilNOT ACCEPTthe latest offer presentedby CUPE Local 82, and further, that the Negotiating Team

    BE DIRECTED to go back to the negotiating table with the

    City's last offer as the base for continuednegotiations, both as outlined below:

    The City's last offer:

  • 8/14/2019 CUPE Strike Presentation

    91/114

    91

    s $1800 lump sum for full time

    s $ 900 lump sum for part time

    s January 1, 2010 = 1.5%

    s January 1, 2011 = 1.8%

    s Post Retirement Benefits capped at age 65 for new hires and self-

    funded after that.

    s - 3.3% wage increase over 3yr agreement

    ors - 1.1% average wage increase per year

    MOTION DOES NOT CARRY.

    Councillors Postma, Lewenza, Hatfield, Marra and Jones voting aye.

    Councillors Brister, Halberstadt, Gignac, Valentinis, Dilkens and Mayor Francis

    voting nay.

    Moved by Councillor Hatfield seconded by Councillor

  • 8/14/2019 CUPE Strike Presentation

    92/114

    92

    Moved by Councillor Hatfield, seconded by CouncillorGignac,

    THATthe Negotiating TeamBE DIRECTED to goback to the negotiating table with CUPE Local 82 andto ask the Union to review the City's last offer and torespond.

    CARRIED.

    Councillor Postma was absent from the meeting when the

    vote was taken on this matter.

    s CUPE's proposal is not much different than what is achieved a monthl t

  • 8/14/2019 CUPE Strike Presentation

    93/114

    93

    later.

    s In fact the overall percentage increase went from an average of 1.46%increase over three years to an average of 1.7% increase over 4years -

    one month later. A increase of 1% more than what CUPE was lookingfor.

    s On the issue of a signing bonus, Council was unanimously prepared tooffer $1800 as a starting point to continue negotiations.

    s Had negotiations resumed, and even if both sides had met in the middle,this framework would have represented an agreement that was fair to our

    employees and cheaper for tax payers than what we eventually agreed tofive weeks later.

    s What is critical on this date is the unanimous admission by council thatnet zero was a failed approach.

    s This substantial shift also identifies that this dispute may have been moreabout politics than it was about economics.

    s Because the money provided here is more money than what was neededto pre fund Post Retirement Benefits for new employees in their entity.

    s Or it identifies that Councils failure in recognizing lost opportunities

  • 8/14/2019 CUPE Strike Presentation

    94/114

    94

    going back to 2006 or the failure to pursue motions that were lost on

    April 15, April 24, and Councillor Hatfields motion on May 11.

    s Which in hind sight all represent a better deal for tax payers and our

    Employees .

    s For weeks we were hearing in our local paper that there were four or

    five council members that were prepared to sell taxpayers down the

    river.

    s

    The question that must be asked to the so called hard liners is whathappened in the span of an hour that caused such an enormous shift.

    s Why did five Councillors and the Mayor reverse their vote on

    Councillor Postmas motion?

    What happened in the span of an hour that caused suchan enormous shift?

    June 18, 2009

    Moved by Councillor Jones seconded by Councillor Brister

  • 8/14/2019 CUPE Strike Presentation

    95/114

    95

    Moved by Councillor Jones, seconded by Councillor Brister,

    THATno member of Council or Administration, other than Mayor

    Francis and/or Helga Reidel, are to comment on, or do anythingpertaining to, labour negotiations.

    CARRIED.

    Councillor Postma absent for the vote.

    June 22, 2009

    Moved by Councillor Lewenza, seconded by Councillor Marra,

    THATthe verbal update from the General Manager of CorporateServices regarding labour negotiations BE RECEIVEDforinformation.

    CARRIED.

    Councillor Jones absent for the vote.

    July 13, 2009

  • 8/14/2019 CUPE Strike Presentation

    96/114

    96

    What was CUPE asking for in it's final offer to the city?

    On July 10, 2009 CUPE provided the City's Negotiating Team with a final offer.This final offer was presented to City Council on July 13, 2009:

    s Four year deal.

    s Current ODA each year of the collective agreement.

    s No post retirement benefits for new hires.s Lump sum payment in 2009 of $2,500 for full-time and $1,250 for part-time

    employees.

    s Wage increases: January 1, 2010 = 2%, January 1, 2011 = 2% and January 1,

    2012 = 3%.

    s 7% total increase:s Two years of job security for each year of the collective agreement (2009 =

    1993, 2010 = 1995, 2011 = 1997, 2012 = 1999).

  • 8/14/2019 CUPE Strike Presentation

    97/114

    97

    The difference between what was in CUPE,s final offerdated June 10, and the eventual agreement is 0.4% in base

    wage increases.

    And 1150.00 less in lump sum payments.

    M d b C ill J N S d l h

  • 8/14/2019 CUPE Strike Presentation

    98/114

    98

    Moved by Councillor Jones - No Seconder as a result the

    motion was never on the floor for consideration and is

    included here only for sake of completeness:

    THATthe final offer presented to the Citys

    negotiating team by CUPE Locals 82 and 543 BE

    ACCEPTED by the City of Windsor.

    NO SECONDER FOR THE MOTION.

    Doug Schmidt July 14th 2009

  • 8/14/2019 CUPE Strike Presentation

    99/114

    99

    g y

    City makes counter offer; Talks to resume Tuesday

    Francis then met with reporters to announce today's talks.

    He said council vote on CUPE's final offer had been 8-3

    against. He said council formulated a new position which

    was accepted unanimously, 11-0The union has refused to

    to disclose the substance of it's so called "final offer" -- anoffer that was rejected 8-3 a week ago Monday by city

    council -- but some details have emerged.

    Moved by Councillor Hatfield, seconded by Councillor

  • 8/14/2019 CUPE Strike Presentation

    100/114

    100

    y , yLewenza,

    THATthe Citys bargaining team BEDIRECTED to return to the bargaining table with anoffer to be shaped by the expertise of the bargainingteam with flexibility to continue the negotiation process.

    MOTION DOES NOT CARRY.

    Councillors Postma, Lewenza and Hatfield voting aye.

    Councillors Brister, Halberstadt, Gignac, Dilkens, Valentinis and Marra

    voting nay.Councillor Jones was absent for the vote.

    Moved by Councillor Brister, seconded by Councillor Dilkens.

  • 8/14/2019 CUPE Strike Presentation

    101/114

    101

    THATthe final offer presented to the Citys negotiating team byCUPE Locals 82 and 543BE NOTED AND FILED.

    CARRIED.

    Councillors Postma and Lewenza voting nay.

    Councillor Jones was absent for the vote.

    s I voted against this motion because I was very concerned that Council was goingto note and file and then go home. My concern which I spoke to was predicatedon the fact that the community and our employees felt a settlement was near. Myfear was had we went home it may have set off a whole chain of unpredictable

    events that may have erased the progress that had been made. I remember sayingthat we had a responsibility to prepare a counter offer no matter how long it took.

    s I also feel that by the mere suggestion that we note and file then go home speaksto the fact that some around the table felt no urgency to get a deal done.

    s Their was still lots of sentiment in the community that the majority of council wasfighting on their behalf, and that city council should not accept CUPE's

    outrageous demands.s But when you look at all the details, is that really the case?

    Moved by Councillor Marra, seconded by Councillor Brister,

  • 8/14/2019 CUPE Strike Presentation

    102/114

    102

    THAT the City of WindsorMAKE a last offer to themembership of CUPE Locals 82 and 543, via a mechanism to

    be determined, to include in form and content all material

    positions advanced by the Citys negotiating team on previouslyreported relevant matters and with the financial package to bepresented to include:

    s $2000.00 lump sum payment to all full time employeesand $1000.00 lump sum payment to all temporary, part-time

    and seasonal recreation employees in exchange for theloss of employer paid post retirement benefits beyondthe age of 65 for all new employees hired on or afterApril 17, 2009.

    s 1% wage increase in year 1 of a 4 year contract

    s 1.5% wage increase in year 2 of the contract

    s 1.8% wage increase in year 3 of the contract.

    s 2.0% wage increase in year 4 of the contract.

    s 6.3 % total cost -

  • 8/14/2019 CUPE Strike Presentation

    103/114

    103

    s $160,000,000 over 35 yrs in wages

    s $ 2.8 Lump sum compounded @ 5% = $15.4 m

    Which is more expensive than the option to explore the April 24th motion.

    And more expensive than Councillor Hatfields motion on May 11, 2009.

    AND THATno return to work protocols be entered into;

    AND THATno overtime be afforded to members of CUPE Locals 82and 543 on the return to work to complete strike related

    work backlog, except in the case of essential services.

    CARRIED UNANIMOUSLY.

    Moved by Councillor Dilkens, seconded by Councillor Brister,

    THAT, in the event that CUPE Locals 82 and 543 refuseto present the Citys final offer to their memberships, or

    in the case that the said final offer is rejected , that theCity will immediately make a request to the Ministry of Labourto conduct a ministry supervised vote on the Citys final offer.

    CARRIED UNANIMOUSLY

    July 17, 2009

    M d b C ill P t d d b J

  • 8/14/2019 CUPE Strike Presentation

    104/114

    104

    Moved by Councillor Postma, seconded by Jones,

    THATthe verbal update from the General Manager

    of Corporate Services regarding labour negotiationsBERECEIVED FOR INFORMATION.

    CARRIED UNANIMOUSLY.July 23, 2009

    Moved by Councillor Postma, seconded by Councillor Hatfield,

    THATCity CouncilRATIFYthe labour settlement withCUPE Locals 82 and 543 as recommended by the Citysnegotiating team.

    CARRIED UNANIMOUSLY.

    Selling this agreement to the Public

  • 8/14/2019 CUPE Strike Presentation

    105/114

    105

    By Chris Vander Doelen, The Windsor Star July 25, 2009

    If a struggling corporation can't cut costs during bad times, when can it? Buttaxpayers should thank their councillors today -- well, most of them, anyway-- for sticking to their guns during a strike that turned into a nerve-rackingstare down for both sides.

    An overwhelming majority of the city's residents decided they had had enoughof perennial tax increases driven by the rising costs of their so-called servants,and ordered local politicians to fix the problem -- or else.

    Mayor Eddie Francis and council responded by delivering the first significantreduction in city labour costs in memory: $35 million in unfunded liabilitiesfor post-retirement benefits will be off the city's books within 10 years. Towhich no citizen will see a dime of savings

    That means Windsor will eventually be able to reduce its taxes relative toother cities so it can compete again for investment and jobs.

    Th t d i b bl fi h th l i t t f

  • 8/14/2019 CUPE Strike Presentation

    106/114

    106

    That day is probably five years away, when the real savings to taxpayers fromthe new CUPE contract start to kick in.

    Again not a dime in real savings

    Taxpayers should give themselves a loud cheer for that. They showedunprecedented solidarity. Instead of submitting like sheep to CUPE's demandfor "more," they stood up to what clearly were unreasonable demands from thepublic sector during the city's catastrophic loss of jobs and tax assessment.

    Were CUPE demands any different than any other unions that the city wasdealing with? Did City Councils Hard line position go on for to long?

    City negotiators tell me pressure from taxpayers is what really settled thestrike. The overwhelming tide of public sentiment was against the strikers, and

    everybody on both sides of the negotiating table knew it: they felt buffeted bythe anger, which propelled them all whether they liked it or not.

    Now labour costs -- a trend line which has done nothing but climb fordecades, accounting for 60 per cent of property taxes -- will start

  • 8/14/2019 CUPE Strike Presentation

    107/114

    107

    decades, accounting for 60 per cent of property taxes will startdipping by about $1 million per year. Not True!

    And Windsor has done it without taking anything away from itscurrent employees in terms of wages or benefits or job loss. Isn't thatthe very definition of win-win?

    Yet we've all heard people complain that given Windsor's dire

    economic circumstances, council should have insisted on a completefreeze on its workers' wages for two years or more. And/or massivecontracting out.

    Cutting wages or jobs simply isn't possible in Canadian labournegotiations -- especially not in government. Not when CUPE

    members across Ontario have been winning average annual contractsettlements worth 2.4 per cent per year.Not true

    By Chris Vander Doelen, The Windsor Star July 25, 2009

  • 8/14/2019 CUPE Strike Presentation

    108/114

    108

    If a struggling corporation can't cut costs during bad times, when can it? But taxpayersshould thank their councillors today -- well, most of them, anyway -- for sticking totheir guns during a strike that turned into a nerve-racking stare down for both sides.

    The deal Windsor won this week will cost taxpayers an average of 1.75 per cent moreduring each of the contract's four years, including the $2,000 signing bonus, which willnot be rolled permanently into base salaries.

    s Excluding the bonus -- which is the way accountants are tallying up the cost of the newcontract-- the members of Windsor's two CUPE locals will only cost taxpayers an extra1.3 per cent per year over the next four years.

    Although very creative this figure is not supported by City Hall administration or otherWindsor Star reports.

    s For those who wonder why council didn't hang tough to extract greater savings from

    CUPE, given that citizens were coping easily with the strike, there are two simplewords of explanation: Dalton McGuinty.

    Not at all true!

    s Windsor's negotiating team had to secure a deal with CUPE before Ontario's

  • 8/14/2019 CUPE Strike Presentation

    109/114

    109

    s Windsor s negotiating team had to secure a deal with CUPE before Ontario s

    labour-friendly premier stepped in with a back-to-work order for Toronto's

    striking CUPE workers, with arbitration to follow.Not True

    s That would have doomed Windsor to arbitration, too. That would almost

    certainly have preserved the post-retirement benefits for life that were the crux

    of the strike. Most likely true

    s

    Windsor taxpayers would have been stuck forever paying gigantic PRB costsestimated at $96 million over the next 20 years -- a risk council couldn't afford

    to take.Not True as $96 million liability did not include new workers. This

    deal provides no savings on existing workers or retirees.

    s Instead the city gets a labour deal that won't kill what's left of its still-bleeding

    economy. I agree but it was not the best deal!

  • 8/14/2019 CUPE Strike Presentation

    110/114

    110

    Gord Henderson Local CUPE members should jump

    ship June 20th 2009

    Oh sure. There'll be lots of militant talk about

    solidarity and fraternity and CUPE forever. Andyada, yada, But when the dust settles and the

    water cooler post mortems begin, clear-headed

    workers will have to ask themselves the obvious

    question: What the hell was that all about?

  • 8/14/2019 CUPE Strike Presentation

    111/114

    111

    Imagine for a moment if CUPE Members at anypoint during this agreement decide to apply 1% oftheir wage increases to a PRB plan for newemployees. This would be no different than the

    benefit in lieu of wages approach where TransitWindsor Employees applied 1% of their increases

    to enhance their benefit plan.

    If CUPE followed this same approach citizens towould be scratching their heads as well wonderingwhat this strike was really about?

    So what was this strike all about?

  • 8/14/2019 CUPE Strike Presentation

    112/114

    112

    Was it really about wages and PRBs, or was it a political strike?

    Did the City and Taxpayers get the best deal possible?

    Did the City achieve what they led citizens to believe relative to long and

    short term cost savings?

    Was elimination of PRBs the core issue for Citizens,

    Or did YOU the Citizens just want us to get the best deal possible?

    Were we well served by our major news outlet, The Windsor Star?

    Was the public given proper information about the role of arbitration?

  • 8/14/2019 CUPE Strike Presentation

    113/114

    113

    p g p p

    Were the consequences to you and the city worth a 101 day strike?

    Why did City Council continue to follow through with the hard linestance of net zero with CUPE and not other bargaining units?

    Why did the so called hardliners on Council fold in a one hour span on

    June 17 that caused such an enormous shift in the City's position?

    Did the City reduce its leverage to reach a negotiated solution with theremaining 70% of its workforce?

    Does anyone really know what the strike settlement was especially inrelation to PRBs for new hires?

    Conclusion

  • 8/14/2019 CUPE Strike Presentation

    114/114

    I personally agree with Eddie Francis that this unanimous deal supportedby City Council at 6.3% over four years, or $160,000,000 over 35 yearsrepresents a fair deal to our employees and to the people that pay them.

    My issue however with this deal is it took 101 days longer than it shouldhave, and the consequences of this dispute were far greater than anythingachieved.

    We have been able to settle contracts at WUC, Enwin, now Transit

    Windsor that are very similar in nature, minus the 101 day strike and all thetheatrics that went with it.

    For the hardliners out there, this deal is clearly not the best that wasavailable, their were less costly options for every one.

    The only question that remains is, what approach will CUPE take tofinding the 50 cents needed per hour to ensure that new employees have afully funded Post Retirement Benefit Plan?