OEM Remanufacturing Employees Secure Significant Wage Gains and Other Improvements with New Contract
Edmonton—A strong majority of employees of OEM Remanufacturing Company voted in favour of ratifying a three-year collective agreement providing them with significant wage gains and other improvements.
The 750 employees are represented by Logistics, Manufacturing, and Allied Trades Union, CLAC Local 56. The union has represented them since 2004.
The new contract provides employees with a minimum five percent wage increase effective immediately, with full retroactive pay back to January 1, 2024. In addition, employees will receive an immediate $4,000 signing bonus. On January 1, 2025, employees will receive an additional $4,000 signing bonus plus a three percent wage increase, followed by an additional three percent wage increase on January 1, 2026.
The agreement also includes a complete overhaul and redesign of the classification level management system, which controls all pay scales, technician functions, and position postings in the plant. The entire plant will transition from a skills- and components-based levelling system to a purely time-based levelling system. A new structure for classification and level management was developed along with a redesigned job-posting system, which will be standardized for all internal and external postings.
In addition, the contract includes increased employer contributions to employees’ pension plans, increased benefits, and a standardized, sponsored apprenticeship program with increased space and employee availability.
“This was a long and difficult round of bargaining,” says Mathew Clarke, CLAC representative. “But after 65 days of bargaining over 11 months, including the assistance of government-appointed mediation, we’re pleased with the result.
“Following an initial settlement that was rejected by the membership, the union bargaining committee did an outstanding job in delivering on members’ needs and expectations in subsequent bargaining with the employer. Members voted 78 percent in favour of ratification, which indicates a strong level of support for the settlement.”
OEM Remanufacturing is a heavy-equipment engine and powertrain remanufacturing company servicing the resource, construction, energy, and transportation industries from its 310,000 square foot plant in Edmonton.