SASKATOON – Barring a last minute deal, thousands of Saskatoon Transit riders will have to find another way to get around the city starting Saturday evening.
Talks between the city and Amalgamated Transit Union Local 615 (ATU 615) broke off late Friday afternoon with neither side budging from their positions.
Jim Yakubowski, president of ATU 615, said talks ended at 4:30 p.m. with no progress made on the major issues – wage increases and the pension plan.
The city has offered a 10 per cent wage increase over four years and is looking for concessions to address a deficit in the general pension plan.
Yakubowski stated the city is not budging from their position and there is no point in further discussions.
According to city officials, they want to address a $6.7-million deficit by increasing contributions from both parties and making changes to the plan to address the problem.
The union says that is a significant issue and the final contract offer from the city was rejected by over 90 per cent of the members who voted.
Yakubowski has previously stated that if the city is allowed to cap their contribution rates, it would no longer guarantee that when it comes time for members to retire that those benefits promised today would will be there in the future.
Marno McInnes, director of human resources for the city, has stated the eight other unions that participate in the pension plan have reached agreements to address the deficit.
The city said funds were hit hard in the 2008 financial crisis and that, combined with retirees living longer and retiring earlier, has made past pension plans unsustainable.
About a quarter of city employees will be eligible to receive a pension over the next five years.
The city served the union with a lockout notice on Thursday for 9:00 p.m. Saturday evening. Access Transit will not be affected in the event of a labour dispute.
Yakubowski said no further talks are scheduled at this point in time.
ATU 615 members have been without a contract since 2012.
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