2 — Friday, September 14, 1990 — North Shore News On Tuesday, September 4, the seven unions forming the Council of Trade Unions on BC Rail struck the railway after several months of unsuccessful negotiation and mediation. Many issues remain unresolved, including: ® a union demand for a 23.5 per cent wage increase in one year “@ aunion demand that every contracting out decision be subject to union or third party approval e some 150 other demands which, by themselves, amount to a 35 per cent per annum increase in present payroll costs. The complete union package, as proposed, would increase the present annual union payroll from $78 million to $123 million or an increase of nearly 60% in one year. About Contracting Out The seasonal nature of railway construction and maintenance sometimes calls for the use of additional equipment anc\ operators as and when needed to augment the permanent work farce. For example, it makes far more sense to hire local earth-mcving machinery and operators to clear rock-slides or wash-cu'ts in remote areas, than it does to maintain full-time crews and equipment year round—“just in case”. Nevertheless, the Council of Trade Unions is demanding that the railway’s present need to contract cut work as required for economic and practical reasons be subject to union or third party approval. This couid lead to hiring more than 140 additional employees and spending tens of millions of dollars on equipment which for most of the year, vould lie idle. In 1989, for example, BC Raii spent $192,000 on backhoe and operator rertal. To have purchased that equipment and maintained a crew year- round would have increased that sum to more than $3 million. This is a small indication of the overall costs which would result from acceptance of the unions’ proposal. The railway is prepared to enhance the present collective agreement language respecting contracting out. The railway is not, however, prepared to agree to a cumbersome and restrictive requirement to obtain union or third party approval on every occasion that a decision to contract out work is needed. About the 23.5 Per Cent Wage Demand Over One Year BC Rail’s 1,700 unionized employees already earn wages which on average are 15 per cent higher than those of their counterparts in the national railways, CN and CP Rail—BC Rail workers are the highest paid railway workers in Canada. They also earn as much or more than most other unionized workers in British Columbia. The unions have stated that the 23.5 percent demand was an opening position and is negotiable; however, the unions have also stated that a substantial, sizeable one year wage increase in double digits is required, even though BC Rail's wage rates are already superior to those paid by most B.C. employers. The railway is already losing business to other railways and transportation modes. It cannot agree to wages and conditions of employment that would further threaten its competitive position. ; BC Rail has said that it is prepared to offer a wage increase, based on or about the cost of living, provided the increase is accompanied by the introduction of cabooseless operations and removal of certain restrictive work practice provisions in the collective agreements. The proposals put forward by the railway are now standard practice on other North American railways, including CN and CP Rail. About the Cther Union Demands There are also nearly 150 other outstanding union demands, all of which would entail substantial additional costs for the railway. These other proposals, combined with a 23.5 per cent wage increase, would amount to nearly a 60 per cent improvement in wages, benefits and working conditions—all in a proposed one-year collective agreement. The Railway's Efforts to Resolve the Dispute Negotiations began in March, 1990 and the unions tabled more than 300 demands. Some 51 negotiating sessions were held over the next six months. During this time the raitway responded positively to 90 of the unions’ proposals and they were resolved. However, the unions would not move on 150 of the remaining issues and mediator John Thorne was requested to assist the parties. After three days, Mr. Thorne concluded that, in view of the large number of issues in dispute—and the parties’ respective positions on these issues—further mediation would be pointiess. Subsequently, Deputy Minister of Labour Claude Heywood met with the parties but he was unable to resolve the dispute. On September 2, in the face of a strike scheduled for September 4, the railway proposed to the Council of Trade Unions that Mr. Thorne be appointed as an Industrial inquiry Commissioner until October 30, 1990 and that for the duration of his appointment, neither party would exercise its right to strike or lock out—that is, a 60-day “cooling-off” period. The railway proposal called for Mr. Thorne to produce non-binding recommendations to be submitted to the unior membership for a vote. If both the union members and the company were to decide in favour, the recommendations would have formed the basis for a new collective agreement. If not, negotiations would resume. The Council of Trade Unions categorically rejected this railway attempt to head off strike action and on September 4, BC Rail was forced to halt its vital transportation operations. BC RAIL HAS ALWAYS BEEN AND CONTINUES TO BE READY TO NEGOTIATE A REASONABLE COLLECTIVE AGREEMENT WITH ITS UNIONIZED EMPLOYEES. In the railway's view, however, the current union demands are . not reasonable. Until the Council of Trade Unions demonstrates a willingness to significantly modify its positions on contracting out, on its 23.5 per cent wage demand and the other 150 outstandin issues, there appear to be no prospects for a speedy, negotiate settlement to this regrettable and damaging dispute. eo ewer”