Rail Sector 2024

Federal transport sector:

• 6% average in the first year
• 4 to 4.5% average increase over the life of the agreement. Includes federal transport sector settlements and trucking.

Teamsters agreements are not finalized:

“Me Too” clauses deal with situations where a bargaining unit going first may be at a disadvantage over bargaining ending later. That is, these units may be smaller or face different economic realities than those who finish later.

These agreements are rather common in the public sector in the USA and in some provinces in Canada. Usually at the municipal or school board level (broader public sector) where there are many bargaining agents segmenting the workforce.

Instead of coordinated bargaining, groups negotiate me too clauses around benefits and wages. This benefits the employer by making calculations for costs of the settlements easier and sustains disunity across the sector/employer.

The language variation is vast in these Me Too clauses.

They can be as simple as:

If the Employer agrees to a higher total compensation increase for any other bargaining unit during the term of this agreement, the Employer shall increase the total compensation for the Employee unit members by the same percentage.

To expansive language:

Notwithstanding any provision of this Agreement to the contrary, the Union and the Employer agree that the Union shall have the benefit of any other health insurance plan that may be negotiated with any other Employer collective bargaining unit. In the event that any such plan shall be agreed to, the Employer will provide the same plan to the Union on terms no less favorable than those provided in this Agreement. Prior to implementing any such plan, the Employer shall notify the Union of the plan change and the conditions under which such plan shall be provided to members of the Union’s bargaining unit not less than thirty (30) days prior to any such change. Any new health insurance plan shall be substituted in place of the plan provided in this Agreement.

One can even negotiate me-too clauses that alter negotiated language in the even of certain levels of wage growth in other groups. For example, that negotiations are re-opened to ensure true (and agreeable) application of the benefits/wage increase.

For reference to the interest arbitration decision that is being challenged and could (in theory) push Teamsters back to the bargaining table, this language should probably be as short and clear as possible.

One recommendation of language:

If during the life of this Agreement, a wage, benefits, or retirement security settlement is awarded, decided, or negotiated in a different Agreement of the Employer and provides for a greater percentage increase than outlined in this Agreement, then that greater percentage increase will be applied to and over-ride this Agreement’s lower increase.

This is not ideal language as it does not deal with the many things could come out of the arbitration process currently underway.

However, there is a balance to be had. You want insurance against a higher wage settlement, but you do not want to build our bargaining around that potential higher wage settlement to the point we are not fighting and winning gains.