1. 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.

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

3. 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.

4. “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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. “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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.

21. 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.

22. 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 Mainly Manufacturing
Local 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.

23. 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.

24. 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.

25. 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.

26. Spring 2014 Negotiations Timetable
Spring Employer strategy review;develop demands,costing,alternatives,devise coordinating principles.
Late March, Expect notice from the USW to commence bargaining.
Spring, 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.

27. 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.