For your information,

The RCTC negotiating team reached a tentative agreement on Thursday July 17th.  Meetings were held in Calgary on July 19th, in Winnipeg July 20th, and in Montreal on Monday July 21st.  The vote is taking place Tuesday July 22nd.

The following issues were resolved:

Term of Contract:  3 years

Wages:  2% December 31, 2002 – 1% following ratification
              3% effective 2004
              2% effective 2005

Rate level adjustments addressed.

Effective the first of the month following ratification, increase pension formula to 1.7%

Issue regarding moving pension formula to 1.8% to be discussed during the closed period while dealing with the disability pension.

Pension plan to be amended to reflect 60 consecutive months rather than 5 consecutive calendar years.

Letter (Appendix A-24) dealing with the re-instating of the consent provision into the Collective Agreement.  Company agrees to pay $200,000 one-time payment if refused retirement at age 55.

Benefit Plan:

Co-pay demand was withdrawn by the Company on July 17th.
Union agreed to amend the Extended Health and Vision Care Benefits base reimbursement entitlement on the Least Cost Alternative and the exclusion of various categories of medications, such as, but not limited to, those medications described as “Lifestyle Drugs”.

Health Spending account for Retirees will be established for employees retiring on or after July 1, 2004.

Letters of Understanding:

Appendix A-22 – dealing with managers returning to the bargaining unit when an Article 1.1 notice under the Income Security Agreement.  They must be in the bargaining unit for a year prior to being eligible for any benefits.

Appendix A-23 – dealing with the trust/relationship issue in the Calgary and Montreal NMC’s.   The Company agrees to bring in a 3rd party to evaluate and try to put a process in place to improve working conditions.

Appendix – A25 – dealing with vacancies and the restricting of seniority in order to fill them.  This is an issue that could lead to the rejection of the contract.

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