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The CRC's best and final offer

By Daniel Jungwirth

April 5, 2020

We appreciate the efforts by Special Mediators Vince Ready and Amanda Rogers in preparing a report that has brought both sides closer together. The offer below illustrates the recommendations that we accept in full and others where we have made modifications and enhancements.


RECOMMENDATION:

Adopt all previously agreed to language detailed from the National Pattern. Includes wage increase over agreement:
• Year 1: 2.5% (as per National Pattern)
• Year 2: 2.75% (as per National Pattern)
• Year 3: 3.00% (as per National Pattern)
• Year 4: 3.5% (as per National Pattern)

CO-OP OFFER: Accepted and enhanced

Accepted National Pattern and extended National Pattern wages for three more years. Represents seven-year deal.
• Year 5: 1% (or National Pattern, whichever is higher)
• Year 6: 1% (or National Pattern, whichever is higher)
• Year 7: 1% (or National Pattern, whichever is higher


RECOMMENDATION:
Domestic Violence and Women’s advocate role

CO-OP OFFER: Accepted
Agreed to two-year pilot


RECOMMENDATION:
Eliminate minimum staffing requirement in LOU 58

CO-OP OFFER: Accepted


RECOMMENDATION:
Eliminate LOU 59 to provide greater flexibility in the assignment of work

CO-OP OFFER: Accepted


RECOMMENDATION:
No change to provisions of Article 2

CO-OP OFFER: Accepted


RECOMMENDATION:
Maintain bargaining unit MO classification

CO-OP OFFER: Accepted


RECOMMENDATION:
Effective on ratification, employees enrolled in the DB Plan will commence contributing 4% of final average earnings as employee contributions into the DB Plan.

CO-OP OFFER: Accepted and enhanced
Co-op continues to offer employee choice between Defined Benefit Plan or Defined Contribution Plan. Choice to be made effective Dec. 31, 2020.


RECOMMENDATION:
As of Feb. 1, 2022, members of the DB Plan will commence contributing 8% of final average earnings as employee contributions into the DB Plan.

CO-OP OFFER: Modified

  • 8% effective Feb. 1, 2021.
  • 50-50 share of current service costs effective Feb. 1, 2022 (estimated employee contribution rate of 9.75% based on 19.5% current service cost with no indexation)

RECOMMENDATION:
The accrual rate be maintained at 2% of final average earnings with no CPP-related reduction applied at age 65 as presently exists in the DB Plan.

CO-OP OFFER: Modified
No change to current collective agreement language.


RECOMMENDATION:
No indexation on post June 30, 2020 service and CPI capped at a maximum of 2% for pre-July 1, 2020 service.

CO-OP OFFER: Enhanced
Extends indexation preservation period to align with plan transition date of Dec. 31, 2020


RECOMMENDATION:
Maintain Savings Plan

CO-OP OFFER: Modified
Choice between modified Savings Plan (4% matching, minor changes to earnings definition) or Performance Plan. Choice to be made Oct. 30, 2020


RECOMMENDATION:
Steam ticket premium

CO-OP OFFER: Accepted


RECOMMENDATION:
Life insurance coverage

CO-OP OFFER: Accepted

DC Pension Choice


Employees have been offered the choice of our Defined Contribution (DC) Pension Plan or to contribute to their current Defined Benefit (DB) Pension Plan. The following are examples of the DC option.

Example 1

Employee 1 is 36 and has been working at the refinery for seven years. Their average best earnings over 36 months is $95,000. They’re eligible for their full pension at age 59.

Commuted Value1
$426,000
Retirement Allowance2
$103,320
Defined Contribution3
$712,000
TOTAL
$1,241,320

Example 2

Employee 2 is 40 and has been working at the refinery for 13 years. Their average best earnings over 36 months is $105,000. They’re eligible for their full pension at age 57.

Commuted Value1
$658,000
Retirement Allowance2
$262,080
Defined Contribution3
$460,000
TOTAL
$1,380,080

Example 3

Employee 3 is 53 and has been working at the refinery for 32 years. Their average best earnings over 36 months is $115,000. They’re eligible for their full pension at age 55.

Commuted Value1
$989,000
Retirement Allowance2
$742,400
Defined Contribution3
$34,300
TOTAL
$1,765,700

1Commuted Value (CV): Value of defined benefit pension
2Retirement Allowance (RA): Compensation for transition to defined contribution pension.
3Defined Contribution (DC): Value of contributions from employee (4%) and employer (10%), including a 6% rate of return
*These examples are based on calculations from November 2019