President’s Report
March 30, 2011

Refurbishment Contract

Yesterday we learned that the ONTC had the second lowest bid of the firms bidding for the next GO Transit Refurbishment contract. The ONTC was within 1.68% of having the lowest bid. It shows just how competitive this competition is and validates the membership of Agreement #12 decision to make workplace changes to better position Ontario Northland to bid competitively on this 7 year contract.

We feel we are in an excellent position to be awarded this contract for a number of reasons. Firstly in 2004 we also finished second to IRSI out of New Brunswick on the current GO Transit Refurbishment contract. After a complete review of the competing bids Ontario Northland was awarded the contract.

Secondly the quality of work performed by our members on the current GO Refurbishment project is second to none. GO Transit has already gone on record stating that the work is the highest level of quality they have ever seen on any their refurbishment projects. Our main competitor for this next contract is CAD out of Montreal which had the first GO Refurbishment contract.

Thirdly the current project supports over a hundred and fifty jobs directly and indirectly within the organization. As well there are numerous suppliers in the North and in Ontario who have prospered because they could sell products directly for use on the GO Transit Project. The positive spinoffs are the same if not greater for Ontario Northland, the communities of the North and the Province with this next GO Refurbishment contract.

Over the next couple of weeks Metrolinx which tendered the contract will review all the proposals and verify that each competitors numbers and scope of work are correct before making a final recommendation to the Metrolinx Board to officially award the contract. The final recommendation to the board is suppose to take place within the next three weeks we are told.

ONR Pension Plan

Most of you received a “Notice of Elections” in your ONTC pay envelope this week. This “Notice of Elections” was issued by the ONTC because it is mandated by the Ontario Pension Regulations. The “Notice of Elections” advised all employees and pensioners that the ONTC had opted to defer payments to reduce the solvency deficit for 1 year. So instead of taking 5 years to eliminate the solvency deficit it would now take 6 years.

This is being done because the Ontario Government who is ultimately responsible for this solvency shortfall as the ONTC’s owner requested that the ONTC delay payments for a year and at the same time have the ONTC perform another Actuarial Valuation this year. This was done with the view that with the markets and interest rates edging upwards the 2011 Actuarial Valuation would show an increase in the value of the ONTC Pension Plan. This would then reduce the solvency deficit which in turn reduces the amount of money the Ontario government would have to give to the ONR to begin eliminating the solvency deficit.

As I reported at our last meeting in January the 2010 Actuarial Evaluation showed that there was an $85 million deficit in the solvency test. The solvency test is used to determine that if something catastrophic happened at the ONTC (such as the ONTC ceasing to operate as an example) which caused the ONTC pension plan to be wound up, for all those on pension and those contributing to the plan to get a pension there would have to be certain amount of money in the pension plan to fund that. This solvency test was added to the pensions regulations because of problems experienced at companies such as Nortel and GM where the plans were to be wound up and there was funding deficits which could cause reduction in payments to current and future pensioners.

Collective Bargaining

As reported the Agreement #12 (Shops) Bargaining Committee is scheduled to meet with the Company again the week of April 4th at the Best Western in North Bay.

After the #12 discussions have concluded then the entire Local’s bargaining committee will meet then with the company to discuss all monetary, benefit and outstanding contract language issues in the hope of reaching new collective agreements.

The Federal Conciliator has been appointed and may be asked to assist the parties if and when it is deemed necessary.

We will keep the membership apprised as events unfold.

IT Policy

The ONTC is in the process of implementing an IT Policy at Ontario Northland. We have had the National union review the document and they have concluded that the document although misguided is legal. Based on this new policy we wish to caution all our members to be very careful in corresponding while on ONTC’s computers. Our advice is to omit any and all private matters from correspondence while using the ONTC’s computers. As well be cognizant of internet usage as the company can and will track each and every website you may go on and the time spent during the day on such sites.

CAW National Executive Board

I have been advised that Heather Grant the Secretary Treasurer for Council 4000 which represents employees at CN, VIA and Toronto Terminal Railway will be nominated at the upcoming CAW Council meeting in April for a vacant position on the CAW National Executive Board.

This is great news for all Rail workers and shows the growing influence of the Rail sector within the CAW. I wish to extend our Locals congratulations to Heather and wish her all the best in her new position.

Provincial Politics

As the next Provincial Election edges closer on October 6th and all parties select a candidate in each of the North Eastern ridings it will be incumbent upon us to ascertain what each party’s platform is for the ONTC. As the election date moves forward our local will be asking each candidate in each riding we have members in to put into writing what their party’s plans for Northeastern Ontario are; as well the role, direction they see the ONTC playing in the North East.

As a Local we have concerns about some of Conservative Leader Tim Hudak’s past and current policies towards the Crown Agencies and the ONTC specifically.

As well Andy Mitchell, Brian Stevens and I met with Nipissing MPP Monique Smith in February to raise our Local’s concern over the Strategic Review of the ONTC being done by the Ministry of Northern Development and Mines.

Ms. Smith understood our concerns but reassured us that our members had nothing to be concerned about. This review was more about the way the organization is structured (governance) should it be in the Ministry of Northern Development and the way it is managed.

Federal Elections

The Conservative government of Stephen Harper was defeated on a motion of Non Confidence last Friday setting the stage for an election on May 2, 2011.

Although the ONTC is more affected by the policies and agenda of the Provincial government this is still an important election for the ONTC and the North.

The Harper Conservative government is far closer in principles to the former Harris Ontario Government than Mr. Harper would like to lead you to believe. We all remember how well the Harris days were for us here at Ontario Northland.

It is important that all members get engaged in the campaign and learn about the platforms of all parties. After doing that it will be easy to deduce that another Harper Conservative Government is not in the best interest of Ontario Northland employees or the communities they live in.

In Solidarity,

Brian Kelly President

Past Reports:

Mar 30/11 | Jan 26/11 | Oct 6/10 | Apr 14/10 | Jan 27/10 | Sep 16/09