Rio Tinto Alcan

Location: Kitimat and Kemano, British Columbia

Union: National Automobile, Aerospace, Transportation and General Workers Union of Canada, Local 2301

Affiliation: Canadian Labour Congress

Number of Employees: 1,150

Bargaining Unit: Plant and Maintenance Employees

A 60-month renewal agreement, effective from July 24, 2012, to July 23, 2017, settled in July 2012 at the post mediation bargaining stage. Duration of negotiations – 4 months.

Wages

Note: Upon completion of smelter upgrade and introduction of new smelter technology in 2011, the wage grid was contracted to three plant-wide classification levels: Job Class 17, Job Class 24, and Trades Group I. All current Job Class wage rates were adjusted to reflect that restructure.

Signing Bonus

$2,500, payable to all full-time, temporary and long-term disability employees.

Cost-of-Living Allowance

Commencing in June 2013 and covering the final 4 years of the agreement, 16 quarterly calculations paying 1¢ per 0.035 point increase in the Consumer Price Index (1992=100) above an annual trigger of 4.0% and folded into wage rates on a quarterly basis (previous formula, which was similar, did not generate an adjustment).

Hours of Work

40 hours per week (unchanged).

Shift Premium

$0 – $1.45 – $1.75 ($0 – $1.40 – $1.70); July 24, 2013, $0 – $1.50 – $1.80; July 24, 2014, $0 – $1.55 – $1.85; July 24, 2015, $0 – $1.60 – $1.90; and, July 24, 2016, $0 – $1.65 – $1.95.

12-Hour Night Shift: $2.15 ($2.10) per hour; July 24, 2013, $2.20; July 24, 2014, $2.25; July 24, 2015, $2.30; and, July 24, 2016, $2.35.

Weekend Premium

$2.30 ($2.25) per hour; July 24, 2013, $2.35; July 24, 2014, $2.40; July 24, 2015, $2.45; and, July 24, 2016, $2.50.

Kemano: $4.90 ($4.85) per hour worked at the Kemano plant; July 24, 2013, $4.95; July 24, 2014, $5.00; July 24, 2015, $5.05; and, July 24, 2016, $5.10.

Paid Holidays

Family Day added for a total of 11 (10) designated days plus 2 floating holidays (unchanged) per year.

Paid Vacation

2 weeks earned after 1 year, 3 after 2, 4 after 8, 5 after 17, and 6 after 25 (unchanged).

Supplementary Vacation: One week’s additional entitlement after 5 years’ continuous service; 2 weeks’ after 10 years’ continuous service; and, 3 weeks’ after 15, 20, 25, 30, 35, and 40 years’ continuous service, all to be taken in the payroll year in which the anniversary occurs (unchanged).

Vacation Pay Premium: In addition to their regular vacation pay, employees with from 1 to 14 year’s continuous service receive a vacation pay premium equal to 18% of their vacation pay; employees with 15 years or more continuous service receive a 23% premium (unchanged).

Health and Welfare

Dental Plan: Orthodontic coverage increased to lifetime maximum of $3,750 ($3,500); effective July 24, 2016, retiree coverage for Plan A: Basic is maintained by the employer to age 70 and increased to $375 ($250) per person per year.

Vision Care: Effective January 1, 2014, maximum reimbursement increased to $450 ($400) in any two calendar years. Retirees are eligible for same benefit coverage to age 70 (unchanged).

Chiropractor: Effective January 1, 2014, maximum annual coverage is increased to $600 ($550).

Physiotherapy and Massage Therapy: Maximum annual coverage is increased to $500 ($450).

Foot Orthotics: Effective January 1, 2013, custom-made foot orthotics and arch support benefit is increased to $600 every 36 (48) months.

Medical Travel: Subsidized at the rate of 38¢ (36¢) per kilometer.

Continuation of Coverage for Survivors: Dependents of an active employee retain coverage under the Medical Services Plan of British Columbia, Vision Care and Dental Plan for a period of 36 (24) months following the death of the employee.

Job Security

Employment Guarantee: No current bargaining unit member will be subject to layoff during the term of the collective agreement due to reorganization or the introduction of new technology (similar guarantee was applicable during term of previous agreement).

Severance Pay on Permanent Layoff (new addition): Employee eligible for payment equal to 2 weeks’ pay per year of service, to a maximum of 52 weeks’ pay.

Trades Training Trust Fund

Once per year, employer makes a contribution to the Fund sufficient to maintain a sum of $225,000 ($200,000) in the Fund.

Allowances

Administration / Social Justice: Employer contributes the sum of $15,000 ($12,000) monthly to the union as cost relief to cover servicing administration, Social Justice, and other union programs.

Recreational (new addition): Maximum of $200 annually to be used as a subsidy for a recognized physical activity or fitness club membership.

Trades School: $135 ($90) per day for hotel accommodation; mileage expense increases to 38¢ (36¢) per kilometer.

Bereavement Leave

Paid leave of 5 (4) days in the event of the death of an employee’s spouse or child.

Leave of Absence

Citizenship: Paid leave of 8 (4) hours when attending a formal hearing required in advance of becoming a Canadian citizen.

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0158610

Note: Summary reflects the information received at time of ratification.