The fact that the ATU`s proposal for the first 1.75% increase comes into effect on January 1, 2019 compared to the city`s latest offer, which foresees the first 2% increase in January 2020, contributes significantly to the dollar`s spread. This difference, when it increases over the life of the collective agreement, contributes significantly to the total cost. While progress has been made on several points of the working conditions raised by the union during the mediation, the parties remain far apart with regard to general wage increases and the union`s demand to increase the mechanics` wages by 10 $US per hour. The City`s latest proposal calls for a general wage increase of 2 per cent per year in January 2020, 2021, 2022 and a 2 per cent increase on March 31, 2023. The proposed duration of the collective agreement is four years and two months. The former collective agreement with ATU expired on January 12, 2019. In the last seven months of negotiations, the city has submitted a total of four liquidation offers to ATU. The ATU remains in a legal strike position and has undertaken legal strike activities, which means that its previous collective agreement is officially denounced. The City of Winnipeg will now consider all options available to the employer under the Labour Relations Act to close this file. It is also important to note that in a previous collective agreement, ATU negotiated a position called payment rather than breaks. Operators currently receive an annual payment of approximately 40 hours` pay at the end of the year.
In 2018, the payment cost the city just over $US 1 million at the resting place. ATU is now asking for mandatory rest time, but has not proposed to end the practice of payment rather than breaks. The ATU remains in a legal strike position and the previous collective agreement is officially terminated. We expect the atU to launch strikes in the fall if it is most uncomfortable for transit passengers. CUPE Local 500 negotiates and manages fourteen collective agreements and has approximately 5,000 members. Our bargaining units range from one member to approximately 5,000 in the City of Winnipeg.