WORKING PAPER Salary-related issues May 2009. Working paper, Salary-related issues Introduction A strategy that measures up to our goals Do away with.

WORKING PAPERSalary-related issues

May 2009

Working paper, Salary-related issues

Introduction

A strategy that measures up to our goals

• Do away with the 2005 decrees

• Win back the right to free collective bargaining

•  Maximize our chances of settling new collective agreements before April 1, 2010

•  Necessity of a historic common front

•  Public services are precious particularly in times of economic uncertainty

•  Negotiation with few but important targets

Working paper, Salary-related issues

1. Salary demands

a) Protecting purchasing powerb) Catch-up payc) Collective enrichment

1. Salary demands

a) Protecting purchasing power

We propose that salary rates and scales be increased by the following percentages to take account of inflation:

• 2% on April 1, 2010• 2% on April 1, 2011• 2% on April 1, 2012

plus an inflation protection clause if the CPI increases by more than 2%.

Working paper, Salary-related issues

b) Catch-up pay

A catch-up raise corresponding to 1.75% of total payrol per year. This percentage would be calculated of the average rate of pay and then integrated into salary rates and scales as a flat amount.

Working paper, Salary-related issues

1. Salary demands

b) Catch-up pay - example

Working paper, Salary-related issues

1. Salary demands

Actual hourly rate

Hourly catch-up raise

New hourly rate

Increase (%)

26,51 $

(average rate) 0,46 ¢ 26,97 $ 1,75 %

19,03 $ 0,46 ¢ 19,49 $ 2,43 %

37,03 $ 0,46 ¢ 37,49 $ 1,25 %

c) Enrichment

We want a commitment from government to resume discussions aimed at agreeing on the amount to be paid as a share in the increase in collective wealth if the nominal GDP grows by more than 3.75%.

Working paper, Salary-related issues

1. Salary demands

Working paper, Salary-related issues

1. Salary demands

In conclusion:

Unless inflation exceeds 2%, and apart from any share in the increase in collective wealth, raises would total 11.25% for three years. The average increases in salary rates and scales for each year would be as follows:

• 3.75% on April 1, 2010

• 3.75% on April 1, 2011

• 3.75% on April 1, 2012

It is understood that flat-rate

premiums would be increased

on the same basis as pay.

2. Salary relativity

That the CSN, if possible together with the other union organizations, begin work with the government parallel to negotiations at the central table on the whole issue of salary relativity, and that this work start by evaluating gender-neutral job classes.

Working paper, Salary-related issues

3. Duration of the collective agreement

That the duration of the next collective agreement be two years and nine months, from April 1, 2010 to December 31, 2012.

Working paper, Salary-related issues

Working paper, Salary-related issues

Pensions

• Funding the RREGOP

• Contributions formula

• Indexing

• Removing the ceiling on years of service

•  Phased retirement

Pensions

4. Funding the RREGOP

That the current method of funding the RREGOP (for the portion paid by participants) be replaced by the distribution of accrued benefits with projection of salaries method, known as the “single premium” method, for the actuarial valuation to be done on the basis of the December 31, 2008 data.

Working paper, Salary-related issues

5. Contributions formula

That in the framework of discussions on the funding formula for the REGOP, changes be made in the contributions formula so that contributions are paid on earnings exceeding 25% of maximum pensionable earnings instead of 35% of maximum pensionable earnings, and that any increase in costs resulting from this change for any contributing employees be borne by the government.

Working paper, Salary-related issues

Pensions

5. Contributions formula - 35 % of MPE

Working paper, Salary-related issues

Pensions

Annual income

Contribution rate

(over 16 205 $)

Amount on which contributions are

paid (given the 16 205 $

deduction)

Contributions Real contribution

rate (total earnings)

29 000 $ 8,19 % 12 795 $ 1 047,91 $ 3,6 %

70 000 $ 8,19 % 53 795 $ 4 405,81 $ 6,3 %

5. Contributions formula - 25 % of MPE

Working paper, Salary-related issues

Pensions

Annual income

Hypothetical Contribution

rate (over 11 575 $)

Amount on which contributions are paid

(given a 11 575 $ deduction)

Contributions Real contribution

rate (total earnings)

29 000 $ 7 % 17 425 $ 1 219.75 $ 4.2 %

70 000 $ 7 % 58 425 $ 4 089.75 $ 5.8 %

6. Indexing

That once the RREGOP fund’s assets exceed liabilities by 20%, the indexing formula for years of service since 2000, namely CPI – 3%, minimum of 50% of CPI,2 be applied to contributory years of service between July 1, 1982 and December 31, 1999.

Working paper, Salary-related issues

Pensions

7. Removing the ceiling on years of service

That the ceiling of 35 years of “contributory” service entitling a participant to a life annuity of 2% per year be abolished.

Working paper, Salary-related issues

Pensions

8. Phased retirement

That discussions on phased retirement be undertaken with the other union organizations.

Working paper, Salary-related issues

Pensions

9. In support of family-work-study balance

That we demand that the Québec government adopt framework legislation promoting family-work-study balance.

Working paper, Salary-related issues

Other proposals

10. Skilled workers

That a technical management-labour committee be created with the mandate of reviewing the issue of the working conditions of skilled workers and making recommendations to the parties.

Working paper, Salary-related issues

Other central-table items

Given the strategic framework for this round of collective bargaining, the CSN and its federations agree that demands on regional disparities, group insurance, premiums and arbitration costs will be addressed at the sectoral level and harmonized if need be. We want to ensure the closest possible co-ordination on these matters, at least within the CSN.

Working paper, Salary-related issues

Other proposals

11. Mandate to harmonize

That the union mandate the federation to do the work needed to harmonize central-table demands with the other CSN federations and with Common Front partners.

Working paper, Salary-related issues

Other proposals

CONCLUSION

• Demands that are realistic, adapted to the economic situation and fully deserved

It is now the duty of each and everyone of us to take these demands into our hands and to support them with determination and in solidarity.