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24 December, 2008
Calling it a “complete and total victory,” ICEM Vice President and Communications, Energy, Paperworkers (CEP) Union President Dave Coles said today that CEP Local 175 ratified a three-year labour agreement yesterday with Petro-Canada, ending a 57-week lockout at a refinery in the Canadian province of Quebec.
“The pattern agreement for the CEP’s National Energy Bargaining Programme has been achieved, the employer has recognized this programme, and we can now truly call this a major victory for both the international and national labour movements,” said Coles.
The 260 members of CEP Local 175 at the Montréal refinery voted on 23 December by 94.6% to approve the retroactive contract.
CEP Local 175 Members Were Solid in Their Resolve to Achieve the Canadian Oil and Gas Pattern Agreement
Coles said the mediated settlement contains a commitment by both sides to undertake measures to improve the labour relationship between CEP and Petro-Canada at all locations across the country. The two sides began private mediation early in December with Special Mediator Lucien Bouchard, Premier of Quebec from 1996 to 2001, in efforts to resolve the lockout, which began on 17 November 2007.
The mediated settlement preserves the pattern labour agreement in Canada’s oil, gas, and petrochemicals industry, thus granting Local 175 members a basket-full of wage and benefit improvements at year end 2008.
They will receive a retroactive pay increase of 5% dating to 1 February 2007, with further increases of 4.5% in 2008, and 4.5% on 1 February 2009. In addition, each worker will receive a C$4,000 bonus, an accrued holiday or vacation payment averaging C$6,000, and a 2007 profit-sharing payment of C$3,800.
Petro-Canada dropped a demand to eliminate the refinery’s health and safety prevention officer; its proposal to accelerate a training programme that would place safety at greater risk; and backed away from plans to alter shift schedules and job assignments.
CEP President Dave Coles
The settlement provides for an automatic extension of the collective agreement when it expires on 1 February 2010 based on the CEP’s National Energy Bargaining agreement with the company at its Edmonton, Alberta, refinery.
Coles credits the start of a nationwide boycott against Petro-Canada’s retail products, as well as vast support both from CEP members, and from union members throughout the world, with bringing the company to terms of the pattern agreement.
“It was clear that the world’s trade unions were pulling in behind our courageous members of Local 175,” said Coles. “We had international support from energy unions around the globe organized by our international federation, ICEM. There is no doubt that this outcome owes much to this watershed of labour solidarity that was organized in support of our members.”
The other message, Coles said, is that boycotts work. “Canadians from all trade unions had begun executing a flawless boycott, and the company took notice.”
ICEM's Manfred Warda, left, in Ottawa with CEP members
ICEM General Secretary Manfred Warda, who had walked the picket line at the Montréal refinery, as well as protested at company petrol stations in Ottawa, extended the Global Union Federation’s congratulations to the CEP and Local 175.
“This is a tremendous victory. The perseverance and resolve of the 260 refinery workers to protect 40 years of pattern bargaining – backed by CEP members across Canada – is an inspiration to us all,” stated Warda. “This will be acclaimed by energy trade unions across the world.”
The back to work agreement calls for CEP Local 175 members to return to their jobs and begin ramping up production to the refinery’s 130,000 barrel-per-day capacity on 12 January 2009. The CEP agreed to drop all legal charges and complaints arising from the dispute.