Dunsmore Law

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Employment and Labour Blog: Collective Agreements 101 - Wages and Classifications

If you are an employer required to negotiate a collective agreement because the Labour Board certified a union, what should you reasonably expect? The basic answer is to write down what already is going on. The issue of MORE THAN PRESENT PRACTICE COMES LATER.

So - wages are important.

And the classifications and job titles attached to the wages.

Unions are about transparency on bargaining unit matters. They want to know and have the right to require the employer to tell them what each employee is paid. Once they know that, they can figure out if they think the treatment is fair. Fairness usually involves equal pay for people doing substantially similar work - or at least employees being in the same pay range.

To develop uniformity and consistency, there should be classifications like labourer or clerical staff or tradesperson or technician. Then, all the employees should be assigned a classification. The wage rates that are collected will show if there is a normal practice of progression or disparate treatment. If the rates are all over, the parties will need to figure out how to explain that in writing. If there are four persons doing similar work with four different rates is there a good business reason or no reason at all ? Are discrepancies explained by years of experience or gender? Is the highest rated person actually better placed in a different classification?

Ideally, create a list of jobs and write down for each one a wage rate. Then, the union will want the collective agreement to say that during its term those classifications and rates will be binding. If the employer only has fully qualified staff, it may want to add a start rate and an end of probation rate. This gives structure. If a job’s skills improve by experience, perhaps an improved rate at one year and two years would make sense. These matters must be discussed with the union. Once agreed upon, the employer needs to apply the deal.

The same type of clarity applies to classifications. Consider “ clerical”, how many different jobs will there be in the clerical classification? Can the accounts receivable and accounts payable be together? Do the office secretary and receptionist jobs fit, or are they treated separately? Initially, these questions are asked to be able to write down accurately what is happening. Only after everyone knows the status quo , can there be discussion about changing it.

So, first things first. Who is employed; what is their job classification and what are they paid? Ensure what you are doing makes sense. Then, write it all down.

Not so hard!

We will discuss writing down other things like vacation and holiday rules. Leave of absence. Discipline practices - later.