Town of Coaldale Employees Reject New Collective Agreement in Labour Board Vote

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The offer represented a significant increase in total compensation, especially when compared to current wage trends in the private sector.

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On Wednesday, August 6, unionized municipal employees at the Town of Coaldale voted to reject the Town’s most recent comprehensive proposal—Comprehensive Offer #3—through a Labour Relations Board-supervised secret ballot vote.

This outcome marks yet another set back in what has been an extensive and, at times, challenging collective bargaining process. It also underscores a widening disconnect between public sector wage expectations and the economic realities facing the broader communities that funds them.

Over the past several months, the Town has worked in good faith with the Alberta Union of Provincial Employees (AUPE) to arrive at a balanced Collective Agreement. This process involved multiple rounds of negotiations, two days of formal mediation, and several revised offers, the last of which—Comprehensive Offer #3—was delivered on June 16, 2025.

That offer included:

  • A four-year agreement with annual general wage increases of 2.5%, 2.75%, 2.75%, and 3%;
  • Additional market adjustments to the wage grid;
  • 100% employer-paid premiums for extended health, dental, life, and short-term disability benefits;
  •  Enhanced paid parental leave;
  • Increased shift premiums and boot allowances;
  • And a 2% vacation pay boost for casual and seasonal employees (from 4% to 6%).

On average, Town of Coaldale union employees were set to make an additional 17% over the next 4 years.

In the spirit of give and take, and in return for the above, the Town requested a few modest rollbacks including:

  • That the overtime rate moves from double time (2X) to time-and-a-half (1.5X);
  • That the partial payout of unused sick leave hours be discontinued, and that the annual number of sick days remain at 12 (recognizing that the Town has both short-term and long-term disability plans in place for permanent employees); and
  • That call-outs (for on-call staff) be at 1.5X the regular rate of pay as opposed to 2.0X;
  • That the joint Employer (1%) / Employee (0.75%) Group RRSP program, which is a benefit that falls outside the Collective Agreement, be discontinued.

Overall, the Town of Coaldale’s offer to its union staff represented a significant increase in total compensation—especially when compared to current wage trends in the private sector, where many workers continue to suffer from stagnant wage growth and inflation.

“We believe the offer we put forward was both generous and sustainable,” said Kalen Hastings, Chief Administrative Officer. “Contrary to the narrative being advanced by AUPE—an organization that likes to invoke the language of fairness and workers’ rights as a smokescreen for greed and entitlement—this proposal was far from insulting. It reflected our commitment to supporting staff while also protecting the interests of Coaldale residents. Simply put, this offer struck a good balance between our commitment to looking after the needs of our employees while being sensitive to 1) the Coaldale taxpayer, who ultimately foots the bill for these wages; 2) the Coaldale business owner, who has to compete with the Town for the same workers; and 3) the Town’s long-term financial health.”

In authorizing a direct vote under Section 69 of the Labour Relations Code, Town Council ensured that employees had the opportunity to evaluate the offer independently, without undue delay or interference, in order to form a new collective agreement.

As per an official motion passed by Council on June 9, 2025, the Town confirms that the retroactive pay included in Comprehensive Offer #3 was a one-time offer and will not be included in any future proposals.

To view Comprehensive Offer #3, which union staff rejected by a vote of 39 (opposed) to 9 (in favour), click here.