April 2, 2024

Dear Member;

We would like to inform you  that we just received the long awaited results of the arbitration for the Manitoba Hydro-IBEW 2034 - 2022 GWI Award,  resulting in a 2.5% GWI for 2022 for all IBEW 2034 members.  Bulleted below are comments and some areas of note In the attached link to the award that Arbitrator Blair Graham used to come to his decision:

• An interest arbitrator’s task is to attempt to replicate the agreement the parties would have ultimately reaching in free collective bargaining.  He notes  that public sector unions generally were becoming more assertive in bargaining around that time.  

• Pages 22- 24 - One of the factors that most influences the arbitrator is what other unions settled for during the same period.  These are referred to as “comparators”.  In our case the comparators weighed more heavily with Hydro’s position of 2%. The other bargaining groups within Hydro received increases of 1.5%, 1.25% and 1.75% in 2022.  Most arbitrators agree that internal comparators are of significant importance.  Arbitrator Graham agreed they are important but that it is also appropriate to look beyond that principle. IBEW argued that this Union would never have accepted a 2% general wage increase and that the “replication” principles required the arbitrator to take into account that this union takes strike action when the offer isn’t reasonable.  To replicate what would have been achieved in bargaining, IBEW argued, he must issue an award higher than 2%.

• Page 25 - Arbitrator Graham accepted IBEW’s argument that high inflation rates must be considered , but agreed with Hydro’s submission that high inflation rates do not usually result in general wage increases mirroring inflation rates.

• Page 35 -  He notes particularly that “The IBEW had already displayed that type of assertiveness by taking strike action during previous rounds of bargaining.”  In this way, he distinguishes IBEW from the other Hydro bargaining units who received lesser increases in 2022.  

• Page 37 - e) “I have concluded that the current dynamic between Hydro and the IBEW is somewhat different from the bargaining dynamic between Hydro and the other three bargaining units. In the last several years this has resulted in the IBEW usually achieving somewhat higher general wage increases the other three bargaining units;”.

• Page 37 - g) Arbitrator Graham finds that inflation was a significant factor. He concludes that inflation must be addressed over time and recognizes the $2000 lump sum payment paid to members as some relief at the time.

We anticipate as per arbitrator Graham’s instruction, that the corporation will issue prompt payment of the award.  The payments will proceed over 3 pay-periods, with retroactive payments for 2022 to be concluded in 1st pay-period, followed by 2023 retroactive payments (based on compounding effect from 2022 minus the 2023 advance) the following pay-period, followed by 2024 retroactive payments (based on compounding effect from previous years) in the next pay period.  The entire process is expected to conclude in approximately 6 weeks.

Thank you to the entire membership for the conviction and support and most certainly patience! Our local has led and championed the way for labour in Manitoba!

In Solidarity,

Business Manager
IBEW Local Union 2034