Pension Contribution Increase: Another Unilateral Violation of the Collective Agreement

On November 27, 2013 the Union was notified by Canada Post management that they are once again implementing a unilateral increase in pension contributions for employees. According to the notice the employee contribution rate will increase another 0.6 per cent of pensionable earnings. This is in addition to the 0.7 per cent increase that was unilaterally implemented by CPC effective July 1, 2013.

Starting with the first pay of 2014 members of the Plan will contribute:

• 8.1 per cent of pensionable earnings (from 7.5 per cent) up to the Year’s Maximum Pensionable Earnings ($52,500.00), plus
• 11.6 per cent of pensionable earnings (from 11.0 per cent) over $52,500.00 of pensionable earnings

Another Unilateral Violation of the Collective Agreement

This decision to raise the rate of employee contributions was taken unilaterally by Canada Post management without consultation or agreement with the Union.

This is a clear violation of clause 37.01 of the Urban Collective Agreement which reads as follows:

37.01 Conditions Not Covered

1. The existing working conditions concerning the payment of a premium, the payment of an allowance or the payment of any other financial benefit that are not covered by this collective agreement shall remain in effect until such time as they are otherwise renegotiated between the parties.

CUPW Grievance

CUPW has already grieved the previous unilateral increase in pension contributions which was implemented in July 2013. As stated in previous bulletins the Union is prepared to discuss with management all aspects of the pension plan, including the current problems associated with the solvency deficit. However we have made it clear that the employer has no right to introduce unilateral changes. Management has absolutely no right to unilaterally take decisions that reduce our pay cheques without consultation and agreement.