TELUS today announced that it has been advised
by the Telecommunications Workers Union that the majority of its
members have voted to accept the second memorandum of agreement reached on
November 6 between the Company and the TWU executive council and bargaining
committee. The terms and conditions of the new collective agreement now become
effective as of November 20, 2005. 64.1 per cent of the 10,566 employees who
voted during the ratification process accepted the agreement.
The positive ratification vote concludes the labour disruption at TELUS
that began on July 21. Within 72 hours, TELUS will begin the complex process
of bringing approximately 8,200 striking employees back to work over the next
“I am thankful our unionized employees have accepted a negotiated
agreement that recognizes their role in our continued success and provides
TELUS with the capability we need to compete effectively. The end of the
labour disruption marks the beginning of a new and exciting chapter for TELUS
and all our team members,” said Darren Entwistle, President and CEO of TELUS
Corporation. “By bringing this matter to a positive conclusion, we are now
able to focus our collective talent and energy on serving our customers,
launching new services and advancing our leadership position in a highly
competitive and changing telecommunications industry. On behalf of the entire
TELUS team, I would like to express sincere appreciation to our customers for
their patience and loyalty during a challenging time.”
Highlights of the collective agreement which applies to approximately
14,000 unionized employees, predominantly located in British Columbia and
– Five-year agreement effective November 20, 2005 to November 19, 2010.
– Compensation consistent with agreement implemented by TELUS on July 22,
2005 with base pay increases of 2.0 or 2.5 per cent in each of 2005 and
2006 and 2.0 per cent in 2007 and beyond, plus cost of living
adjustments in 2009 and 2010. In addition to base pay, variable pay
based on achieving corporate and business unit targets. At target,
variable pay would be 3 per cent of base earnings in 2005, 4 per cent
in 2006 and 5 per cent in 2007 and beyond.
– Alberta employees’ wages will be harmonized with similar positions in
B.C. over the duration of this agreement.
– Consistent with TELUS’ previously disclosed estimates, the payments for
retroactive service since the expiry of previous collective agreements
and other lump sums payable on ratification total approximately $200
million. A portion of this amount has already been paid out to working
bargaining unit members in the third quarter and the balance is
expected to be paid out by the end of 2005.
– Contracting out provisions that provide TELUS with improved flexibility
in a competitive telecoms market while addressing the employment
security concerns of employees.
– Specific provisions have been provided for employees impacted by the
outsourcing of non-core functions or the consolidation of some customer
service and administrative functions. These provisions include high
quality voluntary severance packages consistent with past TELUS
practice, or the opportunity to be redeployed within TELUS’ core
– Foundation for a renewed and constructive union management
relationship, including establishment of a Common Interest Forum and an
agreement between the parties to work together to withdraw all
outstanding Canada Industrial Relations Board cases and other legal
The ratified agreement concludes the complex five-year process of merging
six separate collective agreements, formerly represented by five different
unions, into one.