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Premier Ed Stelmach and ATA President Frank Bruseker at the press conference announcing the historic pension agreement between the government and the ATA—Koni Macdonald
Dennis Theobald
After months of quiet diplomacy and negotiation, representatives of the Alberta Teachers’ Association (ATA) and the government of Alberta announced Thursday, November 15, 2007, that they had reached a tentative agreement addressing the unfunded liability of the Teachers’ Pension Plan and ensuring five years of labour stability.
The agreement, which remains to be approved by the legislature and ratified by teachers, provides for the provincial government to assume full responsibility for funding the pre-1992 unfunded liability of the Alberta Teachers’ Pension Plan. The agreement also establishes a framework for settling collective agreements for the five-year period ending August 31, 2012.
The net result will see a continuing reduction in pension contributions for teachers averaging 3.1 per cent of salary. As well, for the current year (2007/08), teachers will receive salary and allowance increases of 3 per cent and a one-time lump-sum payment of up to $1,500 on April 30, 2008. This payment, which is not in itself pensionable, will be made to every teacher under contract with an employer and will be prorated for part-time teachers. In each of the remaining four years of the agreement, teacher salaries and allowances will increase on September 1 by the same rate as the average Alberta weekly earnings calculated on an annual basis (this formula is similar to one used by MLAs to determine their annual salary increases).
Achieving stability in the education sector is a major objective of the government and the Association. The agreement envisions that each ATA bargaining unit and employer will conclude a collective agreement spanning the five-year term of the provincial accord. In those jurisdictions where existing collective agreements contain sunsetted provisions concerning assignable or instructional hours, these provisions will be extended until 2012 (2013 in the case of Calgary Roman Catholic Separate School District). Having collective agreements in place precludes the possibility of strikes or lockouts until the agreements expire.
Furthermore, the premier and the minister of education will formally commit to refrain from introducing legislation, regulations or policies that might affect the rights or employment conditions of the members of the Association. As well, the government will undertake to seek the support of the legislature to provide the necessary funding to school boards to enable the full implementation of the agreement and to ensure that class-size targets are achieved. On a more proactive note, the Association and the government undertake in the agreement to work cooperatively to enhance the quality of education in Alberta. To this end, the ATA and the province will work to introduce teacher practice review, a mechanism that will empower the Association to maintain standards of professional competence.
The procedures leading to the implementation of the agreement will pose a significant challenge, particularly for the ATA and its locals. Teacher ratification of the memorandum is a two-part process. First, on November 24, 2007, approval will be sought at an Emergent Representative Assembly (ERA) of representatives from each of the Association’s locals. Assuming that a majority of the ERA delegates support the agreement, teachers would then vote individually in their bargaining units to approve or reject the agreement. These votes would be scheduled over the next two months; a majority of all votes cast across the province is required for ratification. The actual results of this vote will not be known until the last bargaining unit has participated.
Assuming that teachers ratify the agreement, the next challenge for bargaining units and school boards across the province is to finalize and approve collective agreements before January 31, 2008. Where required, the government will appoint mediators to assist the bargaining unit and employer to resolve outstanding issues. Finally, the membership of each bargaining unit will need to ratify its own collective agreement in a general meeting of the membership.
Commenting on the tentative agreement, Association President Frank Bruseker observed that it is a winning proposition for teachers, for school boards and taxpayers. "For teachers, the advantages of putting the pension on solid financial footing and securing reasonable salary increases are apparent. What is equally important for school boards is that the provincial government is committing to fully fund this agreement. In the end, though, it is the students and taxpayers of Alberta who have the most to gain. Not only will the agreement provide for labour peace and an opportunity for teachers to work with government to improve education, it also allows government to restructure the funding of the pre-1992 liability of the pension fund in ways that will save billions of dollars over the long run."
Bruseker is pleased to recognize the contribution of Alberta Premier Ed Stelmach in achieving this solution. "During his leadership bid, Mr. Stelmach made a personal commitment to teachers that he would solve the issue of the unfunded pension liability. He has met that commitment. In fact, his personal intervention and leadership were essential in the process that ultimately resulted in this agreement."
Bruseker points out that there were times when the prospects for labour peace and a settlement of the unfunded liability issue seemed uncertain. When the government’s 2007/08 budget increased grants to schools by only 3 per cent, well below the rate of inflation, and also unilaterally imposed a sliding scale scheme for selectively reducing pension contributions that teachers regarded as patently unfair, widespread labour conflict appeared inevitable. Recognizing this reality, the premier intervened in June 2007, by directing that the pension scheme be adjusted to meet teachers’ expectations and mandating direct negotiations between the ATA and the government toward a longer-term solution. "This decisive action by the premier put the two parties on the road to reaching this solution," said Bruseker.
In addition to acknowledging the premier’s role in helping achieve the tentative agreement, Bruseker also recognized the tremendous efforts made by ATA and government officials to bring the complex negotiations to a successful conclusion. Above all, says Bruseker, Alberta teachers need to congratulate themselves. "For years now, teachers have tirelessly educated, pestered and cajoled MLAs of all political stripes, pushing for a pension settlement that would benefit everyone. Today, they can see that all their efforts have had a positive effect."
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