Grievance N00-03-R00009, filed on July 7, 2005, deals with a dispute between the parties on the issue of
the base financial year. The Union argued that the amount above which the parties had agreed that an
additional $29M would be allocated referred to the expenses the employer would have incurred in 2004 had
these employees remained contractors. According to the Union, the $29M the parties negotiated was “new money”
that was going to be paid in 2004 because it was over and above the amounts that CPC had already agreed to
pay to contractors in 2004.
The arbitrator accepted the Union’s interpretation that the employer reached its objective of guaranteeing
its costs because CPC limited its obligation to $29M more than it would otherwise have spent in 2004. The
Union was correct in arguing that under clause 35.01 (b) of the RSMC collective agreement, the calculation of
the financial cap had to be based on payments the contractors would have received in 2004.
During the second re-opener negotiations in December 2007, the parties discussed a settlement regarding
the amount owed. An impending agreement failed because the employer had made it conditional upon an overall
settlement at the bargaining table.
The proposed agreement would have injected $24M into the financial cap.
AGREEMENT
On May 14, 2008, the parties at the national level finally signed an agreement outside the
negotiations’ process concerning the adjustment that the employer must make to the financial
cap. Under this agreement, the employer must inject $24M into the financial cap.
The agreement provides that:
Canada Post will make a 3 million dollar adjustment to the base financial year cap in 2004.
CUPW agrees that this memorandum of agreement constitutes a full and final settlement of national policy
grievance N00-03-R0009.
Arbitrator Stewart will remain seized of the matter with respect to the implementation of the memorandum
of agreement.
NATIONAL GRIEVANCES
Other national grievances regarding the financial cap are being arbitrated or discussed at the national
level.
Including the agreement we have just reached, we estimate that the amounts owed for all national
grievances relating to the financial cap (base financial year, ergonomic assistants, training,
pension-related costs) could reach $150M.
While the Union is vigorously defending your rights, the employer is making every effort to keep you in
the precarious status of contract workers. Don’t let Canada Post and its CEO fool you. When there are
problems at work, such as absences due to illness or injury on duty, they say it’s because of your
“attitude”. We need to close ranks and stand up to an employer whose only goal is to
reduce the workforce to a minimum so it can increase its profits at the expense of your health and
safety.