|Gain-sharing - The Jury is in!|
|March 18, 2005
“Gain-sharing” – the jury is in… In 2001, the CAW bargained to a strike deadline for average wage increases of 3% - 3% - 3% for
2001 through 2003 (in addition to the skilled trades premium of 2%), refusing the other unions’ “pattern” of 2% - 2% - 2% plus
Here is what we said in the Railfax of March 13, 2001:
“If you calculate the difference between the CAW settlement and the so-called railway ‘pattern’ of 2% -2% -2% in terms of
a cash bonus every year, the CAW settlement for an average employee … will be worth an additional $728 in 2001 over
and above what 2% -2% -2% would have produced, an additional $1,290 in 2002, and an additional $1,331 in 2003.
As opposed to the CN-style bonus payments given to supervisors and other unions, these new CAW bonuses are
guaranteed (CN ‘bonuses’ are never guaranteed), they are rolled in to the basic rate of pay, and they count for the
purposes of pension, overtime, vacation pay, layoff, bridging, etc. – the other CN ‘bonuses’ count only for income tax
Finally, the $1,331 final-year bonus will continue to be paid every year into the future, and it will grow along with future
Although the CN gainsharing bonuses are now disappearing (as we predicted), the permanent “CAW bonus” will yield on average
$1,412 this year and $1,454 in 2006.
Source: CAW Railfax