Dear CUPE 1975 members,
We’ve heard that there is some confusion about the monetary terms of the tentative Collective Agreement, so we want to clarify a few key points ahead of today’s ratification meeting, where everything will be explained in detail.
First, some members may be unsure how the 2% increases already received in each of the past two years fit into this agreement. Although those increases have already been paid, they are part of the compensation framework under the new agreement and are included in the overall monetary package. And if you did not receive any or only a partial increment increase in 2025 or 2026, the parties have negotiated lump-sum payments to account for this.
One of the longstanding challenges has been the “broadband” or wage-range system itself. Under that system, members could not easily tell where they fell within the range, how close they were to the minimum or maximum, or when increment increases would no longer apply. Pay statements only showed earnings, not a clear hourly rate or position within a scale.
This tentative agreement replaces that structure with a transparent step system. The new wage schedule will clearly show what step you are on, making progression and future increases much easier to understand.
How the transition works:
- For the transition year (this year), members will be placed on the step within their phase that is closest to their current hourly rate — and where there is a choice, placement will be at the higher rate.
- By this point, members will have received 4% in increment increases, or up to 4% in lump-sum payments in lieu of increments in 2025 and/or 2026.
- Members will then be placed at the closest step in the 2026 wage schedule, which reflects a further 2% adjustment applied to the 2025 schedule.
- By April 1 of this year, you will clearly know what step you are on.
Placement during the transition is not based on years of service, because members may have been originally hired at different points within the old wage ranges. However, going forward, progression will be based on step advancement after each year of service. Beginning in 2027, members will see:
- General wage increases effective January 1, and
- Step progression on your anniversary date, which may be adjusted if there were breaks in service, as progression follows the definition of service. Service is defined as being actively at work or on approved leave of absence with pay (including sick leave and vacation) or on maternity leave, but does not include leave of absence without pay in excess of thirty-one (31) calendar days.
To calculate your expected increase in compensation over the term of the new agreement, you would take your hourly rate provided in your compensation statement for 2028 (the last hourly rate figure provided) and subtract what your hourly rate was in 2024 (after the increment was applied on January 1, 2024, if applicable). This will give you the hourly rate increase over the term of the agreement. To have this reflected as a percentage, you divide the hourly rate increase by the 2024 hourly rate and then multiply by 100 to get the actual percentage increase.
For example: If I am in Phase 4 and my hourly rate was $25.50 following the increment increase on January 1, 2024, my calculation would be:
January 2, 2024: $25.50/hour
January 1, 2025: 2% increment increase = $26.01/hr.
January 1, 2026: 2% increment increase = $26.53/hr.
April 1, 2026: Placement at Step 4, Phase 4 which results in hourly rate adjustment to $26.76
January 1, 2027: 2.25% increase to rates of pay = $27.37/hr.
July 1, 2027 (my anniversary date): Move from Phase 4/Step 4 to Phase 4/Step 5 = $27.91/hr.
January 1, 2028: 2.25 increase to rates of pay = $28.54/hr.
July 1, 2028: Move from Phase 4/Step 5 to Phase 4/Step 6 = $29.11/hr.
My hourly rate increased $3.61 from January 1, 2025 to my anniversary date in 2028. The percentage increase from $25.50 to $29.11 is 14.16%. This is my expected increase in compensation over the term of the agreement. It is important to note that this is an example of an employee who received both increments in 2025 and 2026.
For those that did not receive increments, up to 4% will be provided as a lump sum, so your expected increase will be lower, however you will be eligible for lump-sum payments for 2025 and 2026, and potentially eligible for the Long-Service Increment (LSI) of 2% on top of your hourly rate, which would likely come into play for most people who are eligible, in 2028.
We strongly encourage you to attend today’s ratification meeting so you can hear the full explanation and have your questions answered directly before the voting window opens. If you have any questions following the meeting, or require any assistance with the vote and/or your electronic ballot, members of your Negotiations Committee will be available to provide further clarifications and/or assistance, where required.
Sincerely,
Your CUPE 1975 Negotiations Committee