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Refinery and Unifor exit mediation process over pension disagreement

Workers and management at the Co-op Refinery Complex will not be continuing with a 60-day mediation period.

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Workers and management at the Co-op Refinery Complex will not be carrying on with mediation after the two sides could not agree to terms that would allow the mediation process to continue.

According to a press release issued by the refinery on Tuesday, Unifor Local 594’s executive chose not to proceed with mediation and instead enter a mandated 14-day cooling-off period.

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Following the cooling-off period, a 48-hour strike or lockout notice can be given, which would put both sides in a legal position to enact a strike or lockout.

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According to the company, pre-conditions demanded by the union made it impossible for mediation to continue for its full 60-day term. The main point of contention between the two parties is over pensions, due to the company’s intention to shift to a defined contribution pension plan.

The company made an offer on Nov. 7 that included an option for employees to choose between contributing to their current defined benefit plan, or transition over to the defined contribution pension plan, which would see the company pay 10 per cent, while employees would pay four per cent. Unionized employees would also have access to a company performance plan based on the overall performance of the company.

Kevin Bittman, president of Unifor Local 594, said in a phone interview that the union had been asking the company to give workers an option when it came to pensions, as well as protection for those who choose to stay on the defined benefit pension plan.

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Bittman said the choice the company offered was not satisfactory to the executive.

“They offered a choice, but it was a gutted defined benefit plan and it was nothing that we were interested in,” he said during a phone interview on Tuesday.

In regard to the talks in general, Bittman said the company has yet to make an offer the executive feels they can take to their members.

“The company’s making $2.5 billion over the course of the last agreement. We feel that they should be able to put something on the table that respects the workers, and they haven’t done that yet,” he said.

The company said it hopes the cooling-off period will allow unionized employees to encourage their executive to get back to the bargaining table.

“I want to emphasize that our priority is to get a deal done at the bargaining table and avoid a labour disruption; however, that means that both sides must be willing to bargain. We encourage the Unifor 594 Executive to return to the bargaining table,” Gil Le Dressay, vice-president of operations at the refinery, said in a press release.

If a labour disruption does happen, the refinery’s management team, along with contractor employees, will begin operating the facility.

This story has been updated. A previous posting indicated Co-op Refinery Complex management and Unifor would not be entering mediation. The current version reflects that the parties had been in mediation, but would not be continuing the process.

mmelnychuk@postmedia.com

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