A new two-year collective agreement with Canadian Union of Public Employees at the City of Red Deer has been ratified.
City council approved the deal on Monday.
The agreement is effective Jan. 1, 2010, to Dec. 31, 2011.
CUPE Local 417 represents the majority of city employees with the exception of exempt or non-unionized staff (management), the city’s Electric Light and Power Department, Red Deer Emergency Services and transit operations.
Employees will see their wages increase two per cent on Jan. 1, 2010, 2.25 per cent on Aug. 8, 2010, and three per cent on Jan. 1, 2011.
During negotiations, both parties looked at other settlements reached throughout Alberta for this year.
“Most were in the range of 4.5 per cent, and this approved phased approach will result in a budget impact of less than three per cent for the city in 2010,” said Human Resources manager Marge Wray.
Wray said the two-year agreement provides stability.
Negotiations proceeded well in an atmosphere of trust and mutual respect, she added.