Lockout Resolved: Coaldale and AUPE Reach Four-Year Agreement
The Town of Coaldale and its Alberta Union of Public Employees (AUPE) workers have officially ended a contentious two-month lockout by ratifying a new four-year collective agreement. The breakthrough came after a majority of union members voted in favour of the deal on Monday, bringing resolution to a labour dispute that began in early September.
Key Details of the New Collective Agreement
The newly ratified contract, which spans from January 1, 2025, to December 31, 2028, includes several significant provisions for the 42 affected municipal employees. Workers will receive a 12-per-cent wage increase distributed over the four-year term, though the agreement takes effect upon ratification with no retroactive pay increases.
Additional benefits secured in the agreement include 75-per-cent employer-funded health and dental benefits and overtime compensation set at 1.5 times the regular hourly rate for both overtime and callouts. The deal also introduces paid coffee breaks during mid-day hours, a measure the town says will "ensure uninterrupted productivity during the morning and afternoon hours."
Path to Resolution and Return to Work
The labour dispute escalated when AUPE workers voted 83 per cent in favour of strike action in early September. The Town of Coaldale responded on September 3 by issuing a 72-hour lockout notice that took effect on September 6.
Resolution efforts gained momentum in late October after the Alberta Labour Relations Board ruled that the town had failed to meet its obligations under the Alberta Labour Relations Code. The board found that Coaldale had not made sufficient efforts to enter into a collective agreement, forcing both parties back to the negotiating table.
Under the settlement, the 24 employees who remained locked out will return to work on Monday, joining 18 colleagues who had already resumed their positions. The agreement also includes the withdrawal of unfair labour practice complaints filed by AUPE against the municipality.
Municipal Leadership Perspective
Coaldale Mayor Jack Van Rijn described the council's decision to initiate the lockout as "difficult but necessary" in a Thursday statement. He emphasized that the move was intended to "stand up for the private sector," which he characterized as "the silent stakeholder that ultimately foots the bill for municipal salaries, wages, and benefits."
"This deal reflects our commitment to achieving that objective and to closing what our Council saw as a widening disconnect between public-sector compensation expectations and private sector wage trends," Van Rijn stated.
The new agreement also brings changes to retirement benefits, ending participation in a joint group RRSP. While sick leave remains at 12 days annually, the deal eliminates partial payouts for unused sick time.
The resolution comes after Coaldale's previous council had decided to wait until after the October 20 municipal election before altering the town's negotiation mandate, a delay that prompted the AUPE to file its successful complaint with the labour board.
