Steelworkers' Negotiations at CEZinc in Valleyfield - Two Major Gains: Pensions and Sub-contracting

MONTREAL - The 462 Steelworkers working for CEZinc in Valleyfield have accepted a new four-year collective agreement, of which the key provisions are a major improvement in the company's pension plan and the clause dealing with sub-contracting.

"Our members' priority was the pension plan, and our objective in this area has been met: the basic pension amount will be increased, an employer-funded phased-in retirement program has been implemented and an annual escalator clause introduced along with improved pension payouts for those who have already retired. The other major priority was sub-contracting. It is now clear that any work done in the plant must be carried out by workers from this bargaining unit," declared Richard Boudreault and Jean-Guy Bouchard, respectively union staffer and head of Local 6486 of the USW/Syndicat des Metallos (FTQ).

In continuing, the two union leaders pointed out that this set of negotiations was particularly difficult. "We held a total of 70 meetings with the company," they explained, "over a period running from September 2007 to February 2008. The bargaining committee worked very hard to achieve the objectives set by our members. An example is the final package deal presented by the company on December 6. We could take it or leave it. We took it to a general assembly, where it was rejected by 80% of our membership. They would not submit to any form of blackmail. They wanted a negotiated settlement."

The Pension Plan

The basic pension amount paid out under the plan will rise from $48 to $54 monthly for each year of service. An annual indexing formula for pensions has been negotiated. The previous formula was applicable once every three years. Under the new phased-in retirement program, workers aged 56 years with 30 years of service will be able to work 13 weeks in the plant and remain at home for 13 additional paid weeks, based on the new pension plan terms, while they are covered under the insurance plan. The program, of two years' maximum duration, will be paid for directly by the employer rather than through the pension plan. And finally, union members also thought of those who have already retired. These past employees will receive 50% of the pension owed to retirees under the new agreement.

The Insurance Plan

This plan has also been improved with the addition of travel insurance for workers who go out of the country, payments for laser eye surgery and specialist costs when patients are referred by the worker's attending dentist. The short-term disability insurance amount will increase to $630 weekly or plan participants can opt for a formula that pays 55% of income, which is higher.

Salaries

The Steelworkers working for this company will receive salary increases of $0.55 hourly for the first three years of the contract and $0.60 for the final year. Upon expiry of this collective agreement, the average hourly rate will be $28.

Sub-contracting and job creation

In addition to improving the clause dealing with sub-contracting, the Steelworkers (FTQ) union has negotiated the creation of ten jobs, eight of which will be filled by workers specializing in maintenance. The union also negotiated the introduction of two new functions. "Sub-contracting was really a major problem in this organization. At the start of our negotiations, there were 250 grievances relating to this litigious issue alone. Outside the plant, we have a collection of trailers that we call 'the sub-contractors' village'. This makes no sense, but things are now clear: work in the plant must be done by members of this bargaining unit," said Jean-Guy Bouchard.

Health and Safety

These clauses of the contract were also made more specific, with a view to emphasizing prevention and eliminating the highly excessive number of accidents occurring in this plant.

The final concession obtained by the union will see the head of the grievance committee freed up to work full-time on these matters. This clause is renewable yearly, subject to mutual agreement between both parties.

The factory belongs to the Noranda Income Fund, which in turn is an Xstrata sub-contractor. The agreement in principle was arrived at on February 7. It was ratified by 76% of the membership on February 18.