St. John's, outside workers reach tentative deal

CBC News has learned that a tentative deal has been reached thatcould avert a strike or lockout affecting the City of St. John's and its outside workers, andinvolvesinside workers as well.

Contract talks with CUPE, which represents garbage collectors, equipment operators and other outside workers, broke off in late August, with both sides in a prescribed "cooling off" period before further steps could be taken.

The City of St. John's had made a significant wage offer an 18 per cent raise over four years but CUPE turned it down because it came attached with what the union called unacceptable changes to workers' pensions.

CUPE said the city wanted to switch from a defined benefit plan to a defined contribution plan, which would mean workers would not know how much money they would receive in retirement.

An agreement reached Friday will also apply to inside workers.

No one with the city or the union is speaking publicly on the tentative deal.

Joint statement expected Monday

CBC News has been told that there will be a joint statement on Monday on what the tentative agreement entails.

If the deal is approved, it would put a halt to the possibility of a strike or lockout within days. The cooling-off period expires next week, with either side able to move as early as Sept. 18.

Earlier this month, St. John's Mayor Dennis O'Keefe said a major change is needed in how the pension plan is managed.

"[The] bottom line is that without going down this route, the sustainability of the plan is not possible in the long run," O'Keefe said at the time.

But Ed White, a national CUPE representative, said the union has been insisting that a defined contribution plan is far too risky for the workers.

"We feel it doesn't provide adequate security for people in retirement. The risk shifts entirely from the city to the individual employees," White said last week.