To:

City of Iqaluit Unionized Employees

Re:

Collective Bargaining Update

We would like to give you a collective bargaining update. Collective bargaining began on January 15, 2016, and
the City and the Union met over 7 days during this round of negotiations.
At bargaining the City informed the Union Bargaining Committee that its collective bargaining mandate was
based on the following factors:
1.

That the City, Towns and Village Act requires the City to eliminate any deficit at the end of a fiscal year
by the end of the next fiscal year. Currently, the City is in contravention of the City, Towns and
Villages Act;

2.

City taxes are the most significant source of City revenue. Monies generated from City taxes go to the
payment of the City operating costs, which include salaries and benefits. (In 2014 0.59.78 cents of
every dollar went toward the payment the salaries and benefits of both unionized and non-unionized
City of Iqaluit employees.);

3.

For the past 5 years, City revenues did not cover the cost of salaries and benefits of City employees
(without taking into consideration other City operating costs). From 2010 to 2014, the taxes collected
by the City were $64,445,489 whereas City employee salaries and benefits amounted to $79,326,261,
which is a short fall of $14,880,772);

4.

The current situation is financially unsustainable for the City, particularly given the legislative
requirement for the City to eliminate its deficit at the end of a fiscal year by the end of the next fiscal
year.

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City of Iqaluit
Box 460
Iqaluit, Nunavut
X0A 0H0
Phone (867) 979-5600
Fax (867) 979-5922

Ville dIqaluit
C.P. 460

In addition, on January 30, 2015, the Iqaluit Chamber of Commerce asked City Council not to increase taxes
until a fiscal plan was developed to eliminate the deficit, stating that continual abuse of the Act may open the
door for the Government of Nunavut to put the City under Administration similar to the early 1990s. The CGS
currently meets quarterly with City officials for updates regarding the Citys deficit reduction.
In response to the budgetary issues, City took several steps to help eliminate the deficit, including:

Iqaluit, Nunavut

1.

City Council passed By-law 802, Debt Management and By-law 803, Financial Planning Model Bylaw;

2.

The City restructured City Departments: personnel and service delivery;

3.

The City rescheduled Hours of Work;

admin@city.iqaluit.nu.ca

4.

The City postponed Capital Projects; and

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5.

The City reduced Departmental operating costs.

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This is not enough in and of itself to reduce the deficit

We want you to know that to achieve a deficit reduction by December 31, 2017, and to minimize potential
layoffs within the next two years, the City proposed, amongst other things, a 2-year collective agreement term
and proposed:
1.

A freeze on the current salary grid;

2.

A zero % increase in salary and benefits;

3.

The creation of a new grid for casuals;

4.

The restructure of the VTAs: $2,200 per employee and $5,000 per family per year; (2) removal of
second VTA;

5.

The reduction of the ultimate removal assistance;

6.

The reduction of relocation expenses on initial appointment;

7.

A discussion of MOU re: performance based bonuses;

8.

Layoffs.