Instead of sending out invoices, tracking grain deliveries, processing cheques and arranging rail shipments, nearly 200 unionized head office employees of Viterra are walking the picket line outside the company’s Regina headquarters.
As well, about 600 country operations and maintenance employees launched a work-to-rule campaign, which means refusing to work overtime and ignoring new hours of work rules the company has imposed.
Both sets of workers are members of two separate bargaining units of the Grain Services Union, and have been without a contract since Jan. 31.
Negotiations between the company and the union, including the assistance of a federally appointed conciliator, have failed to resolve contentious issues involving wages, benefits and hours of work.
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The job actions launched July 7 will have no immediate impact on the ability of farmers to deliver grain to Viterra elevators.
However, GSU general secretary Hugh Wagner said the strike by head office workers will disrupt the company’s operations.
“The Regina headquarters is the nerve centre of the company and the people out on the picket line perform vital functions,” he said. “Their absence will have a major impact.”
He said the union hopes for a quick resolution but members have told him they are in it for the long haul, if necessary.
Viterra officials have said the company has “comprehensive contingency plans” in place to ensure customer service is not disrupted.
Colleen Vancha, vice-president of investor relations and corporate affairs, said it will be business as usual, and expressed regret at the continuing impasse.
“The GSU’s action is disappointing given the significance of the company’s offer and opportunities for additional compensation through a generous annual incentive plan,” she said.
The two sides disagree about the meaning of the company’s last wage offer.
Viterra describes it as a five-year offer, containing a six percent signing bonus followed by annual increases of six, five, five and five percent, along with an annual incentive program based on individual performance reviews that could result in further increases of five to 10 percent.
The union said the company has only offered to budget for the annual increases but has made no commitment to pay them to the employees.
The company has also proposed eliminating some earned days off and taking sole control of the employee benefits plan, which is jointly run by the company and the union.
Ken Kupchyk, president of the head office local, said in an interview on the picket line that the issue is not money.
“It’s about spending time with family and earned days off and hours of work,” he said.
Another picketer, who asked not to be named, said hours of work and days off are the biggest issues for her.
“I’m prepared to stay out until I move to another job” she said.
The strike was called after the company issued on July 2 legal notice to the GSU of its intent to lock out employees on July 7.
That notice said employees would be required to report for work under the terms and conditions outlined in the company’s final contract offer, adding that employees who failed to do so would be disciplined unless a lawful strike was implemented.
Chief operating officer Fran Malecha said in the notice the company had no choice.
“The uncertainty of an unresolved collective agreement is detrimental to everyone associated with Viterra,” he said.
Wagner said the union has told the company it is prepared to resume bargaining.
The company has responded that it is willing to meet if progress seems likely and has suggested the assistance of a conciliator.
Wagner questioned the sincerity of that offer.
“While they claim to be willing to meet and want to bargain, their precondition is we should indicate that we are prepared to agree to their final offer,” he said. “That doesn’t leave much room for bargaining.”
Farm groups declined to comment on contract issues, but expressed hope it would be resolved quickly and would have no impact on farmers’ ability to deliver grain or buy farm inputs.
“It’s not our place to be involved yet, but if it started to really affect us, if dragged out to harvest time for example, then we’ll make our voices heard,” said Cherilyn Jolly-Nagel, president of the Western Canadian Wheat Growers Association.
Stewart Wells, president of the National Farmers Union, said he hopes both sides recognize the potential impact on farmers and work hard to reach a settlement.
“Collective bargaining may be messy at times,” he said. “It’s the worst way to revolve disputes except for everything else.”
He added that as a publicly traded shareholder-owned company, Viterra may be under pressure to reduce labour expenses in order to satisfy investors.
(Western Producer staff are members of a different local of the GSU).
– with files from Karen Briere
