A federal arbitrator decided VIA Rail engineers should receive a 10.5% pay increase over the next three years. This decision was made because of the cost of living crisis. . Via RailVia Rail train at London, ON, train station .The pay raise is higher than what VIA Rail offered..According to Blacklock’s Reporter, Canada Labour Code arbitrator William Kaplan said for the first time in a generation, inflation is something people must deal with..“It is fair to say that interest arbitrators have not had to contend with significant inflation since the early 1980s,” wrote Kaplan. .“The employer points to inflation as a significant driver of its operating costs, but the same is obviously true about its impact on the cost of living and wage spending power. Inflation is obviously impacting both the employer and union members.”.Over three years, VIA Rail offered a combined 9.25% increase for Teamsters Canada Rail Conference locomotive engineers and yardmasters in Ontario and Québec. Arbitrator Kaplan awarded a combined 10.5% over three years..Last year, the Teamsters got a 3% raise, but inflation rose to 8.1%..“Past increases in the three percent range relied on by the employer were no longer applicable as they did not come close to reflecting economic realities,” said the union..“The fact of the matter is that existing bargaining patterns relied on by the employer are of diminishing relevance given the impact of inflation on wages,” wrote arbitrator Kaplan. .Inflation showed “signs of stabilizing” but “no signs of abating,” Kaplan wrote..“While there will hopefully be a return to historical inflation norms sooner rather than later, no one is seriously predicting that occurring during the term of the two collective agreements.”.VIA Rail expects to lose $411 million in 2023..“Operating costs exceed ridership revenue, a situation not likely to change any time soon,” management told the arbitrator..“Financially, the company has stretched itself in the past few years to grow revenues, contain the operating deficit and the reliance on government funding and improve on the cost-recovery ratio,” VIA Rail wrote in a Summary of the 2022-2026 Corporate Plan tabled earlier in Parliament. .“However, due to the COVID-19 crisis VIA Rail’s financial performance was significantly affected.”.In 2021, the transport department told the Senate National Finance committee that it would take VIA Rail a few years to return to pre-COVID passenger volumes..“We are working closely with VIA Rail and the Department of Finance to ensure their variables, the revenue projections, are well understood,” testified Ryan Pilgrim, chief financial officer for the Transport department.
