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 How Does a CLAC Contract Compare?

 At the end of the day, the main job of a union is to negotiate a collective agreement that guarantees good working conditions, fair rules for payment, raises, promotions, and a grievance procedure with teeth in case anything goes wrong.

Check your Collective Agreement

If you work in a CLAC shop, take a close look at your collective agreement. CLAC often puts clauses in their collective agreements that take power away from workers and give employers the upper hand.

Contracting Out

Often, CLAC collective agreements give the employer the right to hire workers outside of the union.

The Employer will make every effort to do the work with its own forces, but it may contract out work where:
a) it does not possess the necessary facilities or equipment;
b) it does not have and/or cannot acquire the required manpower;
c) it cannot perform the work in a manner that meets quality and projected time limits.

Collective Agreement between Flint Pipeline Services Ltd. And CLAC Local 63
August 1, 2010 - March 31, 2012
Clause # 3.03

Some CLAC contracts allow union wages to drop as a result of the employer contracting out:

In the event that an Employee's job becomes redundant or reclassified to a lower job grade and the Employee's rate of pay is reduced for any reason such as:
a) Contracting out of work

b) Sale of division
c) Technological or mechanical change
then the severance provisions of Article 15.04 will apply. Employees who wish to be retained will be offered a meeting between the Union and the Employer to discuss employment options.

Collective Agreement between OEM Remanufacturing Company Inc. and CLAC Local 56
September 8, 2008 – December 31, 2011
Clause # 15.03

No notice Layoffs

Unionized workers understand that jobs don’t last forever. A real union would want to give its members as much notice as possible in the event of a layoff.

Not CLAC. Some of their collective agreements allow the employer to lay off workers with minimal notice.

The Employer will give the Employee and the Steward four (4) hours notice of lay-off. Four (4) hours pay may be given in lieu of notice.

Collective Agreement between Ber-Mac Electrical Instrumentation and CLAC Local 63
February 1, 2010 to October 23, 2011
Clause # 10.01

Discipline and Union Representation

Under some CLAC collective agreements, an employer does not necessarily need union representation presence when disciplining a worker. Without proper union representation at disciplinary meetings, management automatically has the upper hand.

An employee may be discharged for cause and/or temporarily suspended as a disciplinary measure by the Employer. It is understood and agreed, however, that the Employer will, if possible, discuss with a Union Representative their intention to discharge or layoff the employee before the action takes place.

Collective Agreement between Alberta Automatic Sprinklers and CLAC Local 63
October 1,2010 - September 30,2012
Clause # 24.03

CLAC versus a Real Union

Comparing collective agreements between different employers is difficult.

However, a workplace in Edmonton gives us the opportunity to directly compare a CLAC contract with the contract of a real union.

Finning International is a Canadian-based distributor of heavy equipment. Part of its business involves "remanufacturing" used and worn parts for Caterpillar and other lines of construction equipment. The 250 workers at this Finning Component Rebuild Centre were members of the International Association of Machinists and Aerospace workers (IAM) Lodge 99.

In the spring of 2005, Finning closed its Component Rebuild Centre, and contracted out the work to a new facility called OEM Remanufacturing Company Inc., built and financed with Finning money.

At the Alberta Labour Relations Board hearing, the employer stated they shifted the work to avoid the Machinists having successor rights, which are legal protections to make sure employers can't get rid of a union by playing this kind of shell-game:

"Finning and O.E.M. Reman says that their commercial arrangements do not engage the successorship or common employer provisions of the Code; this is at its root just an unobjectionable contracting out of Finning's work, nothing more. They forthrightly say that their transactions were structured under legal advice to achieve just that result."

Alberta Labour Relations Board
International Association of Machinists and Aerospace workers Local Lodge #99 and
Finning International Inc., (Finning Canada), division of Finning International Inc. and
O.E.M. Remanufacturing Company Inc.
Page 2, paragraph 24

The work being done at Finning under the Machinists’ union and OEM under CLAC is essentially the same and looking at the two contracts allows workers to compare wages between CLAC and a real union.

CLAC versus a Real Union - Wages

Wages under the CLAC contract are lower for most jobs. In some cases, the new wages were 20 to 25 per cent lower than those in the Machinists’ agreement. 
 

Machinists' Contract 
Rate

CLAC Contract
 
Rate
% Drop in Wage 
Production Helper
 
$19.34
 
Production Assistant
 
$14.33
 
25.9 %
 
Labourer/Janitor $16.18  Housekeeper $14.33 11.4 %
Mat. Supply Ass't 2 $19.92 Shipper Receiver $17.31 13.1 % 
Mat. Supply Ass't 2 $19.92 Parts Picker $17.31 13.1%
Benchhand $22.70  Painter/Packager $17.31 23.7 % 
Welder $31.17 Welder $22.95 26.4 %
Production Mechanic $22.89 Chrome Technician $22.95 -0.3 % 
Machinist $31.48 Material Fabricator $26.23 16.7 % 
Machinist $31.48 Spec. Material Fabricator $29.09 7.6 %
Machinist $31.48  Block Rebuild Tech. $29.09 7.6 %
Production Specialist $26.40 Crankshaft Rebuild Spec. $29.09 -10.2% 

CLAC versus a Real Union - Promotions

The new CLAC agreement says that seniority is not a factor – it’s up to the employer to decide who gets a promotion and who doesn’t.

CLAC versus a Real Union - General Holidays

The CLAC agreement gives employees 10 General Holidays per year. The Machinists’ agreement gave workers 12 days per year.

If OEM workers want New Year's Day off, they can get it by agreeing to work on Remembrance Day. Happy New Year, CLAC members!

CLAC versus a Real Union - Pensions

In the Machinists’ contract, the employer contributed 5.75 per cent of an employee's salary toward the pension. The CLAC agreement dropped this rate to 3 per cent.

CLAC versus a Real Union - Probationary Period

The Machinists’ contract had a probationary period of 90 days for new hires. Under the CLAC agreement, the probationary period is six months - that's six months where an employee has little or no protection and can be fired without recourse.

CLAC versus a Real Union - Job Security

Under the CLAC agreement workers don't even have meaningful job security after they pass their probation period.

The old Machinists’ contract said that layoff was done in reverse seniority within each job classification, so if you're the new guy, you're the first to go if the company lays people off. Laid-off employees had recall rights for 12 months and their benefits continued for the first four months after layoff.

With the CLAC agreement, seniority is not considered when determining layoff order. You've been here 30 years and the guy beside you has only been here for a week? Tough luck. The contract also has no recall rights for laid-off workers.

CLAC versus a Real Union - Promotions

The Machinists’ contract included language to guarantee that decisions on who gets promoted is based on seniority, skill and ability. The new CLAC agreement says that seniority is not a factor – it’s up to the employer to decide who gets a promotion and who doesn’t.

What did the workers get when Finning moved its operations to OEM and workers got stuck with a CLAC agreement?
• Lower pay for the same work
• Less paid vacation and fewer stat holidays
• Just over half of the previous employer contributions to their pension
• A doubling of the probationary period
• Promotions based on how much the employer likes you rather than your seniority or ability
• No job security

Lucky for them, there are things a CLAC member can do.

Get a Union!