An interest arbitration board has awarded significant wage increases to unionized staff at a Belleville, Ont., retirement home, finding that wages at the facility were very low relative to local and provincial comparators.
The board ordered a two-year collective agreement for approximately 33 employees at Richmond Retirement Residence, operated by DCMS Realty (Belleville) Limited Partnership. The award includes general wage increases of 3.5 per cent in each year, plus a two per cent special wage adjustment for all classifications and additional targeted increases for registered practical nurses, cooks and health care aides.
The arbitration board was appointed under the Hospital Labour Disputes Arbitration Act to resolve outstanding issues between the employer and United Food and Commercial Workers, Local 175 after the parties were unable to reach a voluntary agreement. The previous collective agreement expired on Oct. 31, 2023.
The retirement home has 82 suites with a resident capacity of 97. The bargaining unit includes 12 full-time and 21 part-time employees working as cooks, servers, health care aides, personal support workers, housekeepers, secretaries, receptionists and registered practical nurses.
Union prioritized wages
The union made clear its priority during bargaining was wages. The union argued that wages at the retirement home were the lowest in the region and sat well below those at similar retirement homes in close geographical proximity. The union submitted that in replicating what the parties would agree to in free collective bargaining, employees at the home would be making approximately the same as workers at nearby retirement homes, since all homes must compete to recruit and retain the same employees.
The union also pointed out that many wage rates in the expired collective agreement were surpassed when Ontario’s minimum wage increased to $17.20 per hour on Oct. 1, 2024 and to $17.60 per hour on Oct. 1, 2025. The union maintained this did not reflect what parties would agree to in a right to strike environment and should be rectified.
To address these issues, effective Nov. 1, 2023, the union proposed eliminating the first two steps of the wage grid, a $1 per hour across-the-board wage adjustment, and a general wage increase of five per cent. For the second year, the union proposed a further five per cent increase. The union also brought forward proposals on bereavement leave, in-charge premium, paid breaks, shift premiums, sick pay, uniform allowance and pay in lieu.
Employer sought sectoral comparison
The employer disagreed that retirement homes within a particular radius were appropriate comparators for replicating free collective bargaining. The employer maintained the board should be guided by a voluntary agreement reached in February 2024 by Chartwell and SEIU, which applies to 15 Chartwell homes throughout the province. The employer argued this was the best evidence of sectoral norms.
The employer urged the board to view the union’s wage proposal in the context of total compensation. The employer maintained employees in the bargaining unit enjoy numerous superior conditions, including a 95 cents per hour pension contribution, 73 cents per hour pay-in-lieu for part-time employees, and 12 paid holidays per year. The employer noted the existence of such superior conditions was a key consideration in previous arbitration awards settling collective agreements between the parties.
The employer submitted the board should reject the union’s wage proposal in favour of two per cent annual increases with necessary adjustments for classifications affected by minimum wage increases and maintenance of existing cents-per-hour differentials within affected classifications.
The employer also proposed reducing certain benefits it identified as superior items, as well as amendments to provisions on full-time status, seniority and disciplinary records.
Board found need for catch-up
In its decision, the board applied the statutory criteria in the Hospital Labour Disputes Arbitration Act and established principles of interest arbitration, including comparability, demonstrated need, total compensation, gradualism and replication. The board noted that replication is the most important principle, as the fundamental task of an interest arbitration board is to replicate the collective agreement the parties themselves would have achieved if able to engage in free collective bargaining.
The board found the evidence revealed wages at the home are very low relative to local and relevant provincial comparators. The board stated that in the circumstances, and notwithstanding that some terms of the collective agreement appear to be superior to those of some neighbouring homes, there is a need for some catch-up in the current round of bargaining to bring wages closer to those earned by comparable employees.
The board awarded general wage increases of 3.5 per cent in each year of the renewal collective agreement, plus a two per cent special wage adjustment for all classifications effective Nov. 1, 2024. The board also ordered additional wage adjustments effective the date of the award for specific classifications: $2 per hour for registered practical nurses, $1 per hour for cooks, and 30 cents per hour for health care aides and personal support workers to bring wages for those classifications closer to those at comparable homes.
The board also made adjustments to wage rates effective Oct. 1, 2024 to maintain percentage differentials between the start rate for classifications affected by the minimum wage increase and other wage rates in the grid.
Under the award, the top rate for a registered practical nurse with three years of service increases from $22.29 per hour in the expired agreement to $26.45 per hour. The top rate for a cook increases from $18.08 to $20.84 per hour, while the top rate for a health care aide increases from $17.90 to $19.94 per hour.
Both the union nominee and employer nominee filed partial dissents. The employer nominee stated the awarded compensation improvements would not have been achieved in a right to strike or lockout environment and the total compensation impact was higher than it would have been in free collective bargaining. The union nominee stated the wages remain low and further adjustments were required.
The collective agreement runs from Nov. 1, 2023 to Oct. 31, 2025. The board ordered that retroactivity be paid in accordance with the collective agreement with necessary modifications to dates.
For more information, see DCMS Realty (Belleville) Limited Partnership (Richmond Retirement Residence) v United Food and Commercial Workers, Local 175, 2025 CanLII 116898 (ON LA)
