Collective Bargaining update- Ministry was cutting $70 million this fiscal year, expected much of that to come from collective bargaining with unions and employers.

	Government warned employers that if savings weren’t found in collective agreements, then the funding would have to be cut from services.
	The negotiated agreement provides significant reductions in wages and benefits for unionized employees.
	From the Union’s viewpoint,  they have protected current employees but any new employees start at a much lower wage.
	Their wage grid is based on 2000 hours for each wage increase.
	Sick time reduced from 1.5 days per month to 1 day per month, and only 80% of a day will be paid when a staff person takes a day off.
	LTD Plan was changed to six month waiting period and 1 year own occupation.
	Health benefits changed: Direct Pay card & Psychologist added, but deductible raised to $45 annually.
	Full Union Viewpoint on Collective Bargaining outcome available HERE.
	Comparison to Spectrum's current benefits was provided on the wage equity bulletin number 15 - available here

Funding Reductions from Government (CUTS):

	In March, we agreed to reduce our funding by $125,000 annually and achieve these reductions through voluntary changes to services.  These savings were found  through people moving to family care, through people moving from two homes to one duplex, changes to our Statutory Holiday policy, changes to office hours, filling a vacancy left by someone moving to family care, and reductions in hours.
	In December, a second set of budget reduction was announced: 0.75% on January 1, 2004 and 1.0% on April 1, 2004
	Total Reductions in Spectrum funding equal $17,000 per month, beginning April 1, 2004.
	In December 2003, we met with all managers to review the new Graffiti program schedule - small group activities for four hours, once a week, that would allow people to explore new interests in a group of 5 - 7 people, with an instructor and staff support for their personal needs.  All programs were asked to find 4 hours per person in weekly reductions, either through attendance at the Graffiti program or by sharing hours with people at other houses.
	At the end of March, we totalled the savings in hours and have reached a total of 58 hours or about $4,600 per month in savings.

The funding for staffing for the Graffiti Leisure Education program was supported through the Gaming application and in addition supports three new participants from the community who have no funded day programs.  For more information on Graffiti - check their webpage HERE.

In March, we received the new contracts for April 1st 2004 (for a full two year period - the assurance of funding stability that we sought) and looked to see how our savings plans matched the new funding amounts.  There was still a significant gap between savings and reduced funding and we decided to look at wages and benefits as an area for further savings, in particular because of the significant reductions that the rest of the community living sector was making.  By reducing the cost of wages and benefits, we could meet the savings targets for the short term, while other program restructuring options are explored.

With the March 15, 2004 paystubs, a WAGE EQUITY UPDATE #15 brochure was distributed that outlined wage and benefits changes that allow us to meet the budget targets:

	A wage increase of 0.50 to the 3 year CSW, 3 year KSW and all manager and coordinator rates, bringing the 3 year CSW rate to $16.00.
	Reducing Spectrum's contribution the Medical Services Plan premiums by 50%.
	Spectrum would reduce their matching contributions to only $25 per month.

Our long term sustainability goal is to get programs that are funded at $15.50/hr and 23% for benefits.

MSP options: Ernie provided the following information on Medical Services plan coverage:

	It is a taxable benefit - so every time Spectrum pays the $54 monthly premium, the employee pays $14 in tax, thus actually only receiving a $40 / month benefit.
	MSP Premiums: CURRENTLY: Net   Spectrum Employee Benefit   Pays Pays Tax to Employee single ($54)      54.00      14.00      40.00         couple ($96)      96.00      25.00      71.00         family ($108)     108.00      30.00      78.00
	Currently Spectrum covers 83 people out of 105 people eligible for benefits coverage.  A number of employees have coverage with their spouse's plan.
	Three employees currently have Premium Assistance - getting premiums of between $0.00 and $21 per month

RRSP Options: Ernie provided the following information on the Group RRSP plan administered by Standard Life:

	81 people contribute to the Group RRSP plan
	3/4 of those people contribute enough to get the maximum matching amount from Spectrum ($37.50 per cheque or $75.00 per month)
	A handout was provided to Policy Representatives showing where all the funds are currently invested.  Spectrum employees have over $300,000 invested in RRSP's.
	Standard Life Group RRSP  Employee Spectrum  Spectrum  Spectrum  81 Employees currently on plan 7,410.00 4,725.00 2,025.00 3,600.00     Current Plan cap at $25 cap at $50

Representatives brainstormed options to get better bang for their benefits buck.

	Employees pay 100% of MSP Premiums and Spectrum pays $30 to RSP (+ staff $25 = $55)
	No wage increase and Spectrum pay 100% MSP.
	Ever employee pays $54, Spectrum continues to pay the difference on couples and family rate.
	10% vacation accrual for employees with five years of service be dropped back to 8%, thus keeping MSP at 100% paid

Third Option Chosen: The option where each employee pays $54 was selected as the option that best met everyone's goals - fair wages, tax effective benefits, and retention of the full RRSP plan.

Benefits costs in Feb/2004 were about 28% of gross wages:

SUN LIFE: Dental Extended Health & Life insurance benefits come up for renewal each July.  We should receive renewal rates for the next year in May 2004.  If there are substantial increases in costs, we will review the options at the next policy meeting.

Implementation of Wage Grid - raises by hours - discussion was brief and informal... 

Next meeting June 2, 2004 - Review benefits through Sunlife based on renewal information.

4pm-7pm at the Spectrum office.