As this is our first Collective Agreement as a new union executive, we want to make significant gains in several areas both in order to impress our membership and to make up for losses in the poorly-negotiated Collective Agreement that has recently expired. That said, we wish to negotiate a fair contract for our members while maintaining the cordial relationship with management that has marked past agreements.

We will focus our negotiations on the financial well-being of our members. Our goal is a significant increase in the overall "income" of our members. This could come as a large wage increase, or as more likely will be the case, a more modest wage increase with gains that have \ financial relevance in other areas such as benefits, vacation, and hours of work. Other fringe benefits—like layoff protection—will help soften the blow of any failings we may have in achieving our aggressive financial-improvement strategy.

Calgary's economy has hitherto existed in an economic vacuum. While mainly positive for Calgarians, this strong economic performance has resulted in a significantly higher cost of living and there has been a province-wide labour shortage that has crippled the functioning of many otherwise strong companies. To avoid this, we believe that it would be in management's best interest to accept the demands of the Union—not only to provide a healthy work environment for our members, but also, to make Bridgetown Manufacturing Company a premiere employer in this competitive labour market.

2) BARGAINING ISSUES AND PRIORITIES:

Wages Priority: High

Initial demand = 12 % Settlement point = 7 % Resistance nnint = 5 %

The previous management was able to negotiate a settlement of less than 2 % per year, which given Calgary's present economy, is not nearly on par with the rising cost of living. Housing, rent, utilities, and transportation have increased rapidly in Calgary in the past few yeas and we would expect a raise in salaries to reflect this.

Calgary's labour shortage has resulted in higher competition for employees; therefore,
retention is paramount. If wages continue to fall behind, employees may find other work
opportunities. It is thus in management's best interest to allow concessions in wages in order to
enhance the company's retention of employees.
Vacation Period Priority: Low

Initial demand = 3 weeks paid vacation after 1 year of employment Settlement point = 3 weeks paid vacation after 2 years of employment Resistance point = status quo

Vacation is currently at 2 weeks after 1 year and 3 weeks after 4 years. The union wants
to increase this to 3 weeks after 1 year. This will affect 30 out of the 200 current employees in
2007. Although more vacation time could be considered a perk, this is not a critical issue with
our members. We recognize in the Calgary market that many companies have aggressive
vacation policies. However, given the competitive nature of our business, this may require som
accommodation. It is important to have work-life balance for families, and vacation will likely
increase productivity when employees return to work rested and re-energized.
Seniority Priority: high

Initial demand = Layoffs are based strictly on seniority (performance not considered) Settlement point = Status quo plus no layoffs during the life of the collective agreement Resistance point = Status quo

We propose a new seniority clause that bases layoffs solely on seniority if the employee is competent to perform the job. This is a high priority issue with the members given the recent

string of layoffs of senior personnel. There was a workforce reduction 01 0 redundant stair,
several of which had over 10 years of seniority. We believe that management should be more
concerned with losing key talent given the challenging labour market in Calgary.
Layoffs Priority: high /

Initial demand = No layoffs during the life of the collective agreement

Settlement point = Union will allow layoffs if the company is going to project a financial loss

Resistance point = Layoffs with joint committee

The union does not want layoffs during the life of the collective agreement. Layoffs will
be entertained only if the company is projected to post a financial loss. In this case, financial
statements must be disclosed and will be subject to Union review. Layoffs will be done by a join!
committee of managers and union representatives.
Probationary Period Priority: Medium

Initial demand = 1 month

Settlement point = 3 months + 3 month extension

Resistance point = 6 months + no extension

Any extensions to probation must be justified and documented by management and sent
to the union representative. The union is also interested in giving probationary employees access
to grievance and arbitration procedures. The key is to maintain new employees and get them up
to speed ASAP. There are significant training costs for a new hire and we want to ensure
success. The recruitment and selection process can be refined to find the right type of candidates
for this organization.
Dental plan (% paid by employer) Priority: Low

Initial demand = 100 % paid Settlement point = 80 % Resistance point = status quo

Due to Calgary's labour shortage and the competition for employees, companies an

offering more fringe benefits to attract labour. Providing 100% coverage to employees would
act as a selling-point for prospective employees and would not be excessively costly.
Severance pay (per year service to maximum) Priority: High ,~

Initial demand = 1 month per year for a maximum of 12 months

Settlement point = 2 weeks per year (uncapped)

Resistance point = 1 week per year for a maximum of 26 weeks

The union can negotiate by giving management the option to lay off employees. The
employees are then given the option to take the layoff or receive a severance package. If they
wish to be recalled after a layoff, the employee can go through the procedure if he or she desires.
Union security Priority: Low

Initial demand = Closed shop (all in union) Settlement point = Status quo Resistance point = Status quo

The union wants all employees join the union and pay union dues to increase the strike
fund and allow for maintenance, upgrades, and training for union negotiators. This would also
decrease the odds of a union raid.
Hours of work (per week) Priority: high

Initial demand = 37 Vz hours + 12% wage increase

Settlement point = Paid by the hour

Resistance point = 37 Vz hours + 10% wage increase

This is a real point of contention for the union members because they will be forced to
work more hours for the same pay. Some possible options may include switching to an hourly
rate. Another option would include increasing the hours and increasing compensation levels.
Overtime Priority: low

Initial demand = Status quo (5 hours) Settlement point = 8 hours Resistance ooint =10 hours

Mnce employees are aireaay upsei wnn increasing me oasic worK wcck, mis couia prove challenging. They may have to pay shift differentials for key overtime periods. For example, working on weekends, holidays and peak demands of the firm may require additional compensation (premium wage/double or triple time). Overtime will be adhered to via collective agreements, labour codes and against our peer group.

This will also have to be taken into consideration against how busy the firm is in
producing orders. We do not want to burn out or work force. Work life balance is a key issue as
many employees are raising families.
Part-time Ratio Priority: High

Initial demand = Status quo (10 % of the workforce is part time)

Settlement point ~ 35 % + minimum number of full-time positions not to sink below curreni

level.

Resistance point = 35 % + Severance option for full-time positions being converted to part time

Our biggest concern is financial protection for our long-term members.

Settlement: Management wants 35% of the workforce to be part time. The union's position is that no full-time employees should be reduced to part time. Management can have their 35% part time as long as this applies to new hires only. Also, the number of full-time positions must not sink below the current level (approx. 180).

Resistance: Our resistance point would be to give management 35% provided that they give a severance option for full-time employees that are being converted to part-time. For example, an employee being converted to part-time hours should have the option to take a severance package if they would like to find employment elsewhere, or take the part time hours if they would like to continue working at this company.

Length of Agreement: Priority: Low

Initial Demand: One-Year Contract Length

Settlement Point: One-Year Contract Length Resistant Point: Two-Year Contract Length

K Manufacturing makes a significant contribution to

the Alberta economy.

Manufacturers directly account for 10% of all economic activity in Alberta. But, manufacturing also drives demand for goods and services from other sectors of the provincial economy. In fact, every dollar of manufacturing output in the province generates $3.21 in total economic activity.

Alberta manufacturers produced and shipped $45 billion worth of goods in 2003. The value of manufactured shipments has increased by 128% since 1990, while production volume (value-added after discounting for price changes) has risen by 94% over the same period of time. The result is that manufacturing has grown 4.1 % faster than the Alberta economy as a whole over the past thirteen years.

Alberta boasts a diverse manufacturing base. The province's largest manufacturing industries include chemical, primary and fabricated metals, machinery, food and wood pnoduction

5.3%

anufacturing is also a major high-paying employer in the Alberta economy. The sector accounts for 8.5% of total employment in the province, with 147,800 employees in 2003. Weekly wages in manufacturing are 25% higher than the provincial average. Manufacturing employment has expanded by 56.5% or 53,400 over the past ten years.

Alberta's manufacturers are also leading exporters. Provincial exports of manufactured goods have grown 292% since 1990. They totaled $17.3 billion in 2002 and accounted of 30% of Alberta's total exports of goods and services that year.

Manufacturing and exporting are the two most dynamic and the most innovative sectors of the Alberta economy. At the forefront of global competition, Alberta's manufacturers and exporters generate the value, the jobs, and the investment that drive economic growth in the province. Their success is critical in ensuring the future prosperity of all in Alberta.