Canfor's millworkers might soon have a contract.
The firm's United Steelworkers-represented employees in the B.C. interior have been without a contract for months and bargaining has been underway since May. About five weeks ago the talks broke down and a mediator was called in. That process resulted in a proposed pact USW members are now considering.
"In general terms, the five-year agreement provides significant pay enhancements for trades[people], improvements to health and welfare benefits, stabilizes the pension plan, and seriously strengthens contract language surrounding use of chargehands," said a statement issued by the union.
Members have 10 days to look the proposal over and vote on it. The forest company's vice-president of human relations, Onkar Athwal, said it was an easy yes for those who had been at the bargaining table for the past several months and understood the details, but he expected the rank and file members to spend time reading and asking questions of the union leaders.
"We're quite pleased with it," said Athwal. "We're happy to have reached a tentative agreement and we believe it is a good settlement for both parties. We look forward to getting to work with our employees."
The term of the contract is longer than many unions have accepted in previous years. Many public and private union pacts have been about three years.
During the global economic downturn, and even before it, financial improvements were not a key feature, either, but in this situation the money is one of the lead items being discussed.
"In addition to a signing bonus and percentage wage increases, the deal also provides cash payments in the third, fourth and fifth years, rate adjustments for log scalers and carpenters, and help for apprentice travel and living-out expenses," said the union.
Neither side was willing to discuss the figures in public prior to the ratification vote, but Athwal said "I'm not going to call it rich [but the financial incentives] are related to our vision of the company's future. The state of the industry always has an impact on the state of contract negotiations. At this time we are cautiously optimistic about the forest industry's overall future."
For the company, the main issue centred on the contract's duration. For the purpose of the company's global customer base and shareholder base, a longer contract duration would help solidify their relationships. It also gives those employees the benefit of more stability for their personal financial planning.
The union is involved in ongoing negations and anticipated negotiations at other companies' worksites. This deal, if accepted, is expected to form a template for those negotiations.
