PORT ALBERNI APRIL 8,2014 Presented by Ross Stryvoke 2014 NEGOTIATIONS PROCESS PORT ALBERNI APRIL 8,2014 Presented by Ross Stryvoke FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Today’s Agenda THE NEGOTIATION PROCESS FIR Labour Relations Ltd.

Your Legal Requirement to Bargain Companies with a unionized workforce have a right and responsibility in law to bargain a collective agreement with the union. Labour Relations Code of B.C.,Section 11(1):”A trade union or employer must not fail or refuse to bargain in good faith in British Columbia and to make every reasonable effort to conclude a collective agreement.” FIR Labour Relations Ltd.

“Bargaining in Good Faith” Includes recognizing the union as the exclusive bargaining agent for your employees:you cannot negotiate with employees directly! Other examples of bad faith bargaining: refusing to meet,negotiators lacking authority to settle,attempting to negotiate illegal issues,failure to disclose pertinent information,prolonging negotiations FIR Labour Relations Ltd.

Required Steps for Bargaining Written notice to commence bargaining (at any time within 4 months immediately preceding expiry date of agreement ) Commence bargaining in good faith within 10 days of date of notice. Make every reasonable effort to conclude an agreement. FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Preparation Have a strategy along with a plan. Will my Company negotiate as: Stand Alone Part of a Group Me Too FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Stand Alone Time consuming. Frustrating Expensive Your own agenda can be put on the table You bargain based on your ability. Only your employees get to accept or reject FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Group Less time consuming. Frustrating. You have input. You are part of group with similar interests. Your employees are part of a group of employees that get to reject or accept. FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Me Too Less expensive Little frustration No input Someone elses outcome Other employees, not yours get to accept or reject. FIR Labour Relations Ltd.

Restrictions on Union’s Right to Strike Cannot strike while agreement is in force. Agreement “bridges”if negotiations continue beyond expiry date and are not “broken off” by either side. Strikes and lockouts prohibited before bargaining and vote Written notice that employees are going to strike after 72 hrs. FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Right to Communicate LR Code Sec 8: “Subject to regulations,a person has the freedom to express his or her views on any matter,including matters relating to an employer,a trade union,or the representation of employees by a trade union,provided that person does not use intimidation or coercion” FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Communication Tips Don’t negotiate with your employees! Be consistent in your storyline Let employees draw their own conclusion Do not threaten or intimidate FIR Labour Relations Ltd.

“Me Too” Agreements in the Past Saved you the hassle of dealing with the union Saved you the shared cost of industry collective bargaining You thought it would save you from the effects of a strike Someone else blamed for bad bargaining outcomes FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Will 2014 Be Different ? Interior and Coastal bargaining in different years.) USW Strategy looks different but union politics seems the same! FIR Labour Relations Ltd.

Will USW follow the Interior as a Pattern? CANFOR,COIFER,IFLRA,VARIOUS Other Companies have reached a 5 year agreement with the USW. Total average labour costs to rise from existing $48.92 to $57.17 by the last year of a five (5) year agreements. Logging is $3.00 more, while manufacturing is $2.00 less. USW will have a Interior Plus Approach for the Coast FIR Labour Relations Ltd.

Why the USW Followed a “Do Not Move” Strategy All employers initially demanded significant concessions and changes to agreements. USW expect that markets would improve in 2014. USW has been afraid of reaching a settlement with one group that won’t be acceptable to others. USW may still want to realign Interior and Coast and bargain one provincial pattern in the future. FIR Labour Relations Ltd.

Pressures on USW Wood Council Bob Matters,(WC Chair),is not going to be active USW Director Steve Hunt not directly involved. Local unions politics seem to overwhelm all bargaining decisions. Several inexperienced bargainers on USW Committee with a “no concessions” philosophy. Difficult to negotiate and sell any concessions to those members who have been working steadily. FIR Labour Relations Ltd.

Interior Employer Bargaining Structure NORTH CONIFER Association(includes Tolko,some West Fraser) Canfor West Fraser SOUTH IFLRA Association (includes Tolko) Interfor Other Independents FIR Labour Relations Ltd.

Structure of Coast Bargaining 2007 FIR(including Western,Interfor.others. Some independents • “Me-Too” ers 2010/2014 WESTERN FOREST PRODUCTS FIR(mostly logging contractors) Interfor Terminal/Mainland CIPA Mill&Timber group Other Independents? “Me-Too”ers FIR Labour Relations Ltd.

Bargaining Outcomes in 2010 Western Set Pattern Others generally followed pattern. Timberwest settled Dec,2008-contract extends to 2016( tied to Coast Master Agreement). Island Timberlands settled July,2009-contract extends to 2012(Unsure of status). “Me-Too”ers (tied to Western,FIR, Island Timberlands). FIR Labour Relations Ltd.

USW 2014 Possible Coastal Objectives Coastal Agreement with expiration date matching Interior “Wall to Wall” USW within Each Certification Job Security Guarantees & Improved Layoff/Severance Payments $ to Pension and other Benefits LTD Plan..additional cost for total employers is .20x12 million hrs.=2.4 million/yr LTD Current annual cost(both sides) is 12millionhrsx $.80= $9.6 million FIR Labour Relations Ltd.

USW Coastal Politics Could Affect Bargaining USW has recently developed a “Western Canadian Bargaining Strategy”but Coast locals have a history of doing it “their way”! Local 2009- Mainly Manufacturing Local 1-1937 is now largest and most dominant Coastal Local(all Vancouver Island but not Pt. Alberni) Bob Matter head of the Wood Council not directly involved in 2014 FIR Labour Relations Ltd.

USW-Western Pattern Settlement? USW has indicated they will bargain the Coastal pattern with Western and all other companies must follow. Western preparing to negotiate their own agreement. Agenda’s exchanged (Commence in April?) FIR Labour Relations Ltd.

Me-Too Agreements may not be valid agreements! Legal opinions support idea that parties cannot contract out of substantive provisions of the Labour Relations Code. (ie.requirement to bargain collectively and serve strike notice on the employer of the employees in question) FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Initiatives for 2014 Liaison with Western Forest Products Small Employer’s Agenda Items and Bargaining Strategy-Customize the pattern Keep small companies relevant. FIR Labour Relations Ltd.

Spring 2014 Negotiations Timetable Spring 2014... Employer strategy review;develop demands,costing,alternatives,devise coordinating principles. Late March, 2014..Expect notice from the USW to commence bargaining. Spring, 2014..USW likely to commence bargaining with Western. June 15,2014 Most Collective Agreements expire,,”Me Too” Agreements expire. And are up for renewal FIR Labour Relations Ltd.

FIR Labour Relations Ltd. Considerations. Is your Company prepared for any of this? Have you received bargaining letter? Know your rights and obligations. Employee communications. Where can I get assistance/advice? FIR Labour Relations Ltd.