UPDATED: Strike or Lockout after Kootenay Savings talks break down
By Nelson Daily Staff
Despite the fact a strike or lockout could seriously affect operations, Kootenay Savings Board of Directors and Senior Management Team stand firmly behind the efforts of its negotiating team to bargain a collective agreement with United Steelworkers Union Locals 9705 and 1-405.
Kootenay Savings Credit Union President and CEO Brent Tremblay said in a media release Tuesday talks broke off when the union rejected the company’s final offer put forward on Monday October 24.
Both sides have been in a lockout or strike position since Friday, October 21.
“Kootenay Savings’ Board of Directors and Senior Management Team stand firmly behind the efforts of its Negotiating Team,” Tremblay said.
“They have worked very hard to help address the Union’s demands and find mutually acceptable resolutions to our key issues within the parameters of the mandate they were given.”
Tremblay said unlike other employers who may control decisions regarding their pension plans, Kootenay Savings belongs to a multi‐employer plan where all decisions regarding the Plan are made by a Board of Trustees.
He said of the 25 credit unions participating in the BC Credit Union Defined Pension Plan, Kootenay Savings is the only one with collective agreement language that holds us to unlimited financial liability for any changes the Trustees may make to plan benefits.
Tremblay said these changes are out of our control, yet we are bound by their decisions.
Tremblay said although many employers have eliminated Defined Benefit Pension Plans due to heavy financial burden they place on employers, Kootenay Savings believes in the value and security that a Defined Benefit Pension Plan provides for our employees, and we have in no way indicated that we intend to withdraw from the BC Credit Union Pension Plan that we participate in today.
“However, we have a fiduciary responsibility to our members and our employees to ensure we limit our financial liability now to maintain the future success of our credit union, while still providing a significant level of protection for our employees,” Tremblay explained.
Tremblay said Kootenay Savings proposed to fund a very lucrative supplemental retirement allowance on an annual basis to provide another layer of protection to employees, in the event of future changes if they were to occur.
This fund is in addition to a rich retirement allowance that we provided to Defined Benefit Pension Plan participants in 2011.
“These additional benefits are unprecedented for credit unions, and no other credit union provides anything to the other 3000+ plan members in the same pension plan, including those of the other Kootenay region credit union employees represented by the Steelworkers,” he said.
Tremblay said Kootenay Savings remains committed to successfully concluding a new collective agreement, and are ready and willing to meet with the Union at any time.
“Unfortunately, over the last few days at some of our unionized locations, employees have begun activities that could be considered strike action,” he said.
“We are closely monitoring these activities in an effort to minimize disruption to our members.”
Tremblay said electronic services, online, phone and mobile banking, along with our ATMs, remain available and fully operational throughout branches at this time.
Please visit kscu.com for more information.
Talks break off Monday in KSCU labour dispute
There continues to be no deal in the Kootenay Savings Credit Union labour dispute with the United Steelworkers Union Locals 1-405 & 9705.
In a media release Monday, Dean Lott, USW Staff Rep said the two sides were unable to reach an agreement after returning to the bargaining table Thursday and Friday of last week and Monday.
As of Friday, both parties are in legal strike and lockout position.
Lott said pension protection language continues to be a key issue in talks.
“We thought we had a route to finding a resolution,” said Dean Lott, lead negotiator for the union.
“Otherwise we have also offered to get back together should something happen and resolve the issue should any changes put KSCU in a financial untenable position.”
Lott said the Credit Union Pension Plan is in good financial shape with Trustees making changes during the latest valuation (September 30, 2016) that has vastly improved the position of the plan.
Lott said management continues to stick on what may happen in the future should KSCU not see changes in the contract.
“We’re proposing being partners in this if there’s a problem and KSCU’s future is affected . . .. The employer doesn’t agree,” Lott said.
“They aren’t willing to cover the liability that the current language states they must.”
Lott said other outstanding issues include wages; working hours for the new Member Service Center; vacation allotment and scheduling along with improvements to the employee banking benefits provision.
Lott did not say in the release about the members immediately setting up picket lines.
Instead, he said USW Locals in Trail and Cranbrook will be communicating with members at the branches as to the next steps, which includes a work-to-rule campaign that could ultimately lead to a work stoppage.
“We certainly appreciate the Credit Union members’ patience during this process and any possible work stoppage,” said Lott.
Comments