Trade union asking members to accept pay cut

IUOE 955’s Fort McMurray office on Gregoire Drive. VINCENT MCDERMOTT/TODAY STAFF

Leaders of Alberta’s largest trade union representing mobile equipment operators are urging some members to accept a 6% pay cut during a vote later this month.

In a Jan. 25 letter from the leadership for the International Union of Operating Engineers Local 955, CEO and manager Bruce Moffatt says the current price of oil leaves the industry as it stands unsustainable.

Moffatt, who did not return a request for an interview on Monday, writes that union leadership has negotiated with several contractors —including KMC Mining Corporation, BFI Constructors, AECON Mining and North American Mining— to limit cuts affecting membership.

Three days prior, the companies approached the union asking for a 10% reduction in base hourly rates, but the union was able to lower that number to 6%. This deal affects pension, vacation and holiday pay as well.

“Your Union leadership has recognized that this is a real crisis in our industry, and that the requests to our contractors for cost cutting are valid, real and immediate,” writes Moffatt. “The situation is beyond the control of the oil companies because it is a global crisis of supply and demand.”

Headquartered in Edmonton with offices in Fort McMurray, Calgary and Edson, IUOE 955 has 14,000 members active in the Alberta’s mining, oilsands, transportation and construction industries. The union’s website boasts they provide more skilled heavy equipment workers than any other union in the province.

Both Suncor and Syncrude have been asking their contractors and suppliers to lower costs and prices. Last month, Suncor announced they were dropping 1,000 jobs, starting a hiring freeze and cutting $1 billion from their 2015 budget.

The proposed pay cuts are not expected to be permanent, though. In papers attached to the letter, members are told pay will return to normal if the price of oil rises above $70 per barrel between Dec. 1, 2015 and Feb. 28, 2016.

If the price remains below $70 per barrel, there will be no change and no wage increases until the next review period, which will be in the summer of 2016. Oil price reviews will be conducted every six months.

“I deeply regret having to ask you to support this letter of recommendation because I know it will have a significant impact on all of you,” writes Moffatt.

“Based on my experience with this and other commodity-based industries, I know that taking a step back can preserve current and future work opportunities for you and many of your brothers and sisters.”

Members are expected to vote on the proposal on Feb. 22.

Source: FortMcMurrayToday.com