SASKATOON – After months of discussions, contract negotiations between the City of Saskatoon and Amalgamated Transit Union Local 615, which represents transit workers, stalled.
The two sides met on Wednesday in an effort to resume contract talks, but neither side would budge from their respective positions.
The city is offering a 10 per cent wage increase over four years and is asking union members to accept changes to the pension plan to address a $7-million deficit.
Eight other unions were asked to do the same and all agreed, effectively addressing a $25-million 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.
“We have an interest in having a good pension plan because it helps us to attract and maintain the talented people we need,” said Marno McInnes, the city’s human relations director.
“It is a fine line between employees who have good benefits and a good wage and taxpayers who, at the end of the day, are footing the bill for this.”
The city said over the next five years, about a quarter of its employees are eligible to receive a pension.
While Saskatoon’s valuation showed a liability of $32-million, the pension deficit in Regina is pegged at $250-million.
Comments