The Canadian Union of Public Employees (CUPE) and the Government of Newfoundland and Labrador have reached a tentative collective agreement it was announced in a news release Thursday morning.
The agreement is for four years, two of which are retroactive, and will expire on March 31, 2020. Terms of the deal include no wage increases, elimination of a severance clause and a change to group insurance for new employees.
“Our government continues to promote greater stability in the public service and economy. These agreements secure no wage increases, changes to group insurance for new employees and the elimination of severance, while providing a measure of job security to CUPE members over the term of the collective agreement,” Minister of Finance Tom Osbourne said in the release.
“As a government, our priority remains balancing our fiscal situation while supporting the delivery of services and supporting economic development,” he added.
It is projected this agreement will save the province approximately $25 million per year.
CUPE represents approximately 4,000 public sector employees across Newfoundland and Labrador
Details around severance payouts for CUPE members will be announced in the coming weeks. Negotiations are ongoing with other public sector unions in the province.
Osbourne is scheduled to host a media availability at 10:30 a.m. outside the House of Assembly to discuss the tentative agreement.
