Doing what they do best!
"The company worked with the TWU to identify creative solutions for meeting the Fleet Service savings target.
The original term sheet did not include changes to compensation, but the TWU proposed pay reductions in order to mitigate the number of jobs affected by outsourcing. This change allowed us to preserve approximately 1,300 jobs that would have been outsourced under the original term sheet conditions.
The original term sheet included a 1.5% structural increase at 12, 24, 48 and 60 months after date of signing. In the ratified agreement, Fleet Service Clerks will be asked to take an immediate 2% pay reduction, but will receive incremental increases throughout the life of the agreement:
- 1% structural increase 36 months after date of signing
- 3% structural increase 60 months after date of signing
Longevity pay will also be reduced by 50 percent at each level, making the maximum longevity pay $0.15 per hour. "