CSU-CUPE Tentative Memorandum of Settlement (Summary) October 2011

Canadian Staff UnionRatification of Tentative Memorandum of

Settlement – October 2011

No automatic shared liability or risk sharing on the pension plan

Fight back employer concessions regarding early retirement options

Fight back move towards two-tiered eligibility for post-retirement benefits

Some form of indexation for retirees

Bargaining PrioritiesPensions & Retiree Benefits

Minimize member liability of salary advances and repayment of wages to CUPE

Jointly develop and implement an accommodation & work reintegration program

Extend coverage for temporary CSU members outside of the National Office

Bargaining PrioritiesLong Term Disability & Accommodation

Establish a baseline of benefits Equalization of benefits nationally Removal of double caps

Bargaining PrioritiesExtended Health & Dental Benefits

Protection of CSU members working temporarily out-of-scope

Protection of CSU seniority provisions

Bargaining PrioritiesSeniority & Out of Scope Positions

CSU-CUPE Tentative Memorandum of Settlement

Recognition & Provincial Certifications

Provincial Certifications and Continued Collective Bargaining

The parties hereby agree that:

1) CSU will confirm that each of its units and/or locals have agreed to participate in the negotiation and implementation of a Master Collective Agreement.

Recognition & Certifications

CSU/ATSU Article 2.01 - Letter of Understanding

2) They will advise the Saskatchewan, Manitoba, New Brunswick and Nova Scotia Labour Relations Boards where the Canadian Staff Union has pending applications for certification that the agreed to Bargaining Unit description will be:

"All employees of the employer primarily based in the Province of except those employed as Regional Director or Assistant Regional Director, clerical employees and those excluded by the applicable provincial statute."


Bargaining Unit Description

In addition, the parties agree to use the foregoing as the recognition clause in the CSU Local NL-1 collective agreement in the event that CSU Local NL-1 desires this bargaining unit description.


Bargaining Unit Description

3) Employees employed as a Legal and Legislative Representative in each province will continue to be voluntarily recognized and included in the respective Provincial Bargaining Units where these positions would otherwise be excluded by the applicable provincial statue.


Legal & Legislative Reps

4) In the event of Labour Board applications involving the Provinces of British Columbia, Alberta, Ontario and Prince Edward Island, the parties will be guided by #2 and #3 above.


Pending Certification Applications

6) It is agreed that the National CSU Collective Agreement will be applied as the first Collective Agreement (hereinafter "Provincial Agreements") in those provinces where certifications are granted and notice to bargain is provided prior to December 31, 2011 and the "Provincial Agreements" shall be deemed to continue for at least one year.


First Collective Agreement

In the event that the Parties negotiate a new National Collective Agreement after January 1, 2012, the Parties agree to apply all amendments to any previously negotiated "Provincial Agreements".



For greater certainty the Parties agree that any retroactive payments adopted in any new National Agreement between the parties which apply prior to the adoption of the "Provincial Agreements", then the retroactive payments will be automatically applied to the previously signed "Provincial Agreement" without the need for any additional negotiation between the Parties and any appropriate local union of the CSU where applicable.



5) Bargaining subsequent to the 2010 to 2013 CSU Collective Agreement will continue to occur at one table, on a National level, and will form the agreement pursuant to each Provincial Certification. CSU agrees that it will have at least one representative from the bargaining unit in Newfoundland Labrador on its bargaining committee pursuant to section 76 (3)a of the Newfoundland Labour Relations Act.


National Bargaining Structure


Grievance Procedure & Lay-Off & Recall

Amend Article 8.02 to read as follows: For the purpose of processing grievances, the President, and/or

Vice-President and the Regional Chief Steward of the Union or their appointees shall comprise the National Grievance Committee. Two (2) members appointed by the Union shall comprise the Regional Grievance Committee. When an employee has a grievance, the specifics of the grievance shall first be placed in writing and directed to the Regional Steward.

The remainder of the clause follows accordingly

Grievance ProcedureCSU Article 8.02

Amend Article 8.03 of grievance procedure to reflect that Step 1 of the grievance will be dealt with by the Regional Director; Step 2 will be dealt with by the Managing Director of Organizing and Regional Services and/or the Human Resources Manager.

Grievance ProcedureCSU Article 8.03

12.01 Both parties recognize that job security should increase in proportion to length of service. If there is to be a reduction in the number of personnel within the bargaining unit, the Employer will give the Unions (ATSU, CSU and COPE Local 491) as much advance notice as possible and discussion will begin to determine what should be done with those employees whose positions become redundant.


Lay-Off and RecallCSU Article 12.01 (Housekeeping)


Seniority & Director Positions

Amend as follows:

(i) Delete "Regional (National) Director”(ii) Delete "Assistant Regional (National) Director”

Seniority & Director PositionsCSU/ATSU Appendix “A” – Salary Schedule

Amend to Article 10.01 (a) read as follows: 10.01(a) Seniority is defined as the length of

service with the Employer in any CSU , ATSU "A", COPE Local 491 and CEU bargaining units ...



CSU/ATSU Article 10.01 (a)

Add New 10.01 (b) as follows:

10.01 (b) Seniority previously earned by current bargaining unit members in the COPE 491 or CEU bargaining units prior to (insert date of ratification) shall continue to be recognized and included as CSU seniority.


CSU/ATSU Article 10.01 NEW (b)

Employees who occupy a position temporarily vacant within the CDU bargaining unit shall not lose their seniority for a period of twelve (12) months. This period may be extended, on an exceptional basis, following agreement between the parties. Such agreements shall not be arbitrarily withheld.


NEW - Letter of Understanding – Loss of Seniority

Employees shall only lose their seniority in the event that they obtain a permanent position within the CDU bargaining unit, after six (6) months following the commencement of their permanent appointment.


NEW Letter of Understanding – Loss of Seniority (continued)


Wages, Benefits, Reimbursables & Term

Amend by adding new (ii) to read as follows:

(ii) Where a retiree engages in post-retirement employment with another employer and receives Group Health and Dental Benefits, the `new' employer's plan(s) shall become the first payor for benefits covered and CUPE's plan will become second payor.

Post-Retirement BenefitsCSU Article 18.02 (c) / ATSU Article 18.08

The parties agree to establish a joint ad hoc Committee comprised of two (2) representatives from CUPE and two (2) representatives of the CSU and hereby agree:

Group Health & Dental Benefits

Memorandum of Agreement Only

1. to jointly establish a baseline of "equivalent" benefits from those currently provided under the Green Shield Group Health and Dental Plans that apply to employees with no additional cost to the Employer. The Committee could recommend that CUPE go to market after completion of the establishment of a baseline of "equivalent" benefits referred to above that applies to all employees.


Memorandum of Agreement Only – (continued)

2. to immediately eliminate any per visit maximums where annual maximums apply.

3. to undertake to complete its work and make recommendations to the respective parties within 6-months for their consideration.


Memorandum of Agreement Only – (continued)

Amend Article 18.03 as follows:The Employer will continue to pay the full premium for medical and hospitalization insurance as presently in force for all employees.

In addition to the present medical plan, the Employer will pay the full premium cost of the Green Shield Health Care Plan or its equivalent or better. It is further understood that Quebec employees shall be enrolled in the S.S.Q. Plan or may choose, if they so desire, to be enrolled in the Green Shield Health Plan.

Medical & Hospital Insurance

CSU Article 18.03

Amend Article 18.03 as follows:

Current employees may opt to change coverage under S.S.Q. or Green Shield effective January 1, 2008.

It is understood and agreed that CUPE is not responsible for the choice an employee makes.

The Employer reserves the right to re-negotiate this clause during the renewal period for the next collective agreement.

Medical & Hospital Insurance

CSU Article 18.03 – (continued)

Parties have agreed to amend $0.43 (forty-three cents) (2007) to read $0.46 (forty-six cents) (2010) and $0.48 (forty-eight cents) (2011).

Mileage ReimbursementCSU Article 22.04 / ATSU Article 21.02

Effective January 1st 2012 $600.00 per calendar year to be amended to one thousand ($1,000) dollars per calendar year in lieu of signing bonus.

Child Care ExpensesCSU Article 21.03 / ATSU Article 22.10

(a) Effective January 1, 2010 2.5%(b) Effective January 1, 2011 1.25%(c) Effective January 1, 2012 2.5%(d) Effective January 1, 2013 2.25%

Term of Agreement December 31, 2013

Wages & Term


National Cell Phone Plan

Amend (a) and (c) as follows:

(a) The parties agree to the implementation by the employer of maintain a National Cell Phone Plan (the Plan) equal to or better than that currently provided by the employer. Immediately upon the expiry date of an employee's individual cell phone plan contract, following their permanent appointment, they will be enrolled in the Plan, with the exception of employees in Saskatchewan who may remain with SaskTel.

National Cell Phone PlanCSU Appendix “J” / ATSU Appendix “L”

(c) The Plan will provide, at no cost to employees, standard cell phone. Employees will have the option of upgrading hardware at their own cost. The Plan will provide a pool of minutes and text messaging capabilities to be shared by employees. Employees will be responsible for personal long distance charges. Employees shall notify the employer of any data transmission packages they wish to purchase. Any additional charges for data transmission incurred by employees will be collected by means of payroll deduction.

National Cell Phone PlanCSU/ATSU Appendix “J/L” – (continued)

Current employees who opt for an Employer paid data package for smart phones shall no longer be eligible for the Home phone allowance as specified in Article 19.01(i) and (ii).


All new employees hired after date of ratification will be required to take a data package and will not be eligible for the home phone allowance. The data package shall be consistent with the package available to staff as of the date of signing.


Add a new (f) as follows:

The parties agree to establish a joint committee to consider changes to electronic equipment and services. Any changes to the plan will be reviewed by the joint committee.

In Memorandum of Agreement Only Smart phone hardware is currently a Blackberry.

National Cell Phone PlanCSU/ATSU Appendix “J/L”

CSU Appendix "H“Letter of Understanding - Ad Hoc Joint Workload Committee Delete Appendix "H"

CSU/ATSU Appendix "I“Letter of Understanding - Re: Human Resources Manager Position

Delete Appendix "I“

ATSU Appendix “J”Letter of Understanding - ATSU Staff Complement Delete references to the organizational review

Letters of UnderstandingCSU Appendix “H” & “I” / ATSU Appendix “I” & “J”


Pension Plan Framework & Trust Agreement

Trust Agreement needs to be reviewed and amended where appropriate to reflect the CSU/ATSU merger.

Pension & Pension TrustCEPP Trust Agreement

To find a permanent solution to the funding pressures our plan is facing (pressure playing out as additional payments for CUPE, pressure from CUPE to share liability)

To find a way to exempt our pension plan from having to fund solvency deficits without accepting shared liability

To find a way to access the current funding surplus of $80+ million to build guaranteed indexing and, in time, improve the bridge.

Pension Framework Proposal

Our Goals:

2. The parties will request the Joint Board of Trustees to adopt smoothing methods to value solvency assets and liabilities as at January 1, 2011.

1. Effective January 1, 2012, CUPE and the pension plan members will each increase their contributions to the plan by 1.2% of pensionable earnings. Adjust the LTD benefit by 1.2%.


Plan Funding – No application of ‘Banker’s Note”

3. CSU will support an application and arrangements to exclude or exempt the pension plan from the solvency funding requirements.

6. In the event of plan windup, the pension benefit would be subject to the funding position of the plan. CUPE further agrees to top up any pension benefit deficiency from assets outside of the CEPP, to the extent permissible by all relevant statutes.


Solvency Exemption

7. The parties agree to request through the co-chairs of the JBT, that the JBT provide all necessary financial resources for Settlors to prepare and process an application for solvency exemption.


Solvency Exemption

4. If the parties are successful in achieving exclusion or exemption from solvency funding requirements, the pension plan text will be amended to recognize indexing payable effective January 1 St, 2012 of the % of the previous year's CPI increase, where the % is as determined through calculations performed by the CEPP actuary for the Joint Board of Trustees (JBT) and if approved by the JBT as being sustainable for the future lifetime of all existing retirees and active plan members in respect of their accrued service based on the balance of the going concern surplus after financing of the costs related to the current pension benefits.

Pension Framework ProposalSolvency Exemption: Indexation Payable 2012

5. The parties agree to meet, with appropriate professional assistance, to discuss possible pension plan design changes related to indexing.


Solvency Exemption: Access to Funding Surplus

8. The following provisions of the March 2007 Memorandum of Agreement will be renewed, however, for clarity, will terminate upon receipt of confirmation of solvency exemption from the Financial Services Commission of Ontario (FSCO):


Solvency Exemption: 2007 MOA undertaking

Pension Funding Issues and Actuarial Valuations

The parties agree that the proper funding of the plan is in the interests of all plan members and the parties. The parties agree to monitor the funding status of the plan and if necessary recommend changes in actuarial assumptions; and should the plan not be properly funded, the parties will meet to negotiate a resolution to the funding problems, which will include the following: the application of Appendix "Y"; increases in employer and employee contributions; benefit adjustments, excluding the lifetime pension. One or a combination of the foregoing will be implemented to ensure proper funding of the Plan.


Solvency Exemption: 2007 MOA undertaking

Settlors make formal application to FSCOPension

YES NO

• contribution increases overfund plan for benefit improvements • no more requirement to fund solvency deficit• access to funding surplus• Indexation for 2011 (payable in 2012) based on current formula without 105% solvency floor (more than 50%)• new plan design to build in guaranteed indexing• indexation for 2012 and 2013 under new model or same as 2011• 2007 MOA terminates and “banker’s note” inoperable

• current solvency deficit covered by contribution increases• no application of the “banker’s note” and CUPE’s additional money remains in the Plan and not subject to “banker’s note” • indexation based on current Plan Text language (i.e. 105% solvency floor)

A one time payment in 2006, 2007, 2008 2010, 2011, 2012 and 2009 2013 shall be paid from the CUPE Pension Plan surplus to provide for a minimum annual CUPE Pension Plan Benefit of $15,000 to retirees whose annual CUPE Pension Plan Benefits are less than $15,000. The above notwithstanding such payments shall be made only to those retirees who received a similar payment in 1999.

Pension & Pension TrustCSU Appendix “T” / ATSU Appendix “Q”


Long Term Disability &Accommodation

Article 18.05 to be amended to include the following: In cases where a claim for long term disability

benefits has not been approved within the initial sixty (60) day period and there continues to be an active claim, employees who apply for, and receive Employment Insurance (E.I.) sick benefits shall be entitled to E.I. SUB payments.

LTD & AccommodationCSU/ATSU Article 18.05

During the E.I. two-week waiting period the Employer shall pay 81% of the employee's normal basic salary. During the following fifteen (15) weeks the Employer shall supplement the weekly E.I. payments up to 81% of the employee's basic salary."

LTD & AccommodationCSU/ATSU Article 18.05

Amend Article 18.05 (b) by deleting the word "final" as follows: The parties recognize that the current LTD Plan is

administered through an ASO agreement. For the period of time that the plan is administered through the aforementioned ASO agreement, CUPE agrees that any final appealed decision rendered by the carrier to deny a claim under the LTD Plan is subject to the provisions of the grievance and arbitration procedure.

LTD & AccommodationCSU/New ATSU Article 18.05 (b)

The parties agree that in the event the final appealed decision of the carrier is grieved, the arbitrator has jurisdiction to resolve the matter and determine an employee's eligibility for LTD benefits. CUPE agrees to implement the arbitrator's award.

LTD & AccommodationCSU/New ATSU Article 18.05 (b) - continued

New sign-off form to confirm E.I. claim having submitted and approved.◦ Authorization for GWL to reimburse employer E.I. sub-

plan top-up upon approval of LTD claim

LTD & AccommodationE.I. Sub Plan Request Form

CUPE to provide letter to the CSU respecting cases involving unique circumstances related to disability issues affecting temporary employees

LTD & AccommodationIn Memorandum of Agreement Only (CSU)

Import all of the LTD provisions contained in the CSU contract into the ATSU Agreement, including the clear right to grieve LTD denials; expanded definition of disability and E.I. Sub-Plan

LTD & AccommodationATSU Article 18.05

Amend by adding the following:

The Committee will endeavour to jointly develop and implement within six (6) months of ratification a Work Reintegration and Accommodation Program.

LTD & AccommodationCSU Appendix “L” / ATSU Appendix “DD”

CSU-CUPE Tentative Memorandum of Settlement (Summary) October 2011

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Transcript of CSU-CUPE Tentative Memorandum of Settlement (Summary) October 2011