The Annual Highway Adjustment Calculations for 2021 have been finalized. These calculations are based on cost inflation for 2020. The Labour Index adjustment will generate a 4.78% COLA (Cost of Living Allowance) increase for 2021 in all highway maintenance areas with a COLA provision.
In the last year of highway maintenance agreements there was no COLA increase given to the contractor or membership from the Ministry of Transportation and Infrastructure. If your contract ended in 2018 there was no COLA for that year and if it ended in 2019 there was no COLA for that year, (except for SA6 as they received their COLA late).
In some of the new collective agreements, we added the last year in with the understanding that if the Ministry of Transportation did not provide a COLA, the members would not be entitled to it, others we had a verbal agreement with the employer. We did not achieve that COLA for the last year of the previous agreements.
- The first anniversary of your new collective agreement (one year after the start date), the first 4% of the COLA will be a 0% wage increase.
- Once that 4% is realized the next COLA amounts will be split, 50% of the COLA to wages and 50% of the COLA to rebuild the 2% pension reduction.
- Once the pension is rebuilt, all the COLA goes towards wages. The COLA increase is the same formula that has produced wage increases since 2005.
- These provisions were bargained in all highways agreements to-date, those that have not bargained under the successorship agreement yet are SA 11 and SA 20.
In service areas 2, 3, 4, 9, 12, 15 & 24 the increases are applied as follows:
In service areas 1, 5, 6, 7, 8, 10, 13, 14, 16, 17, 18, 19, 21, 22, 23, 26, 28 the increases apply as follows:
In service area 11, they receive the 4.78% COLA. The SA 11 agreement ends in 2023. |
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