Health PEI and the Canadian Union of Public Employees have reached a tentative three-year collective agreement that includes significant wage increases and new retention incentives for more than 1,300 health care support workers.
CUPE members from locals 805, 1051, 1778 and 1779 will vote on the agreement Tuesday. The deal covers workers in laundry, dietary, maintenance, housekeeping, ward clerks and sterile technicians across hospitals, long-term care homes, addiction treatment centres and public health offices.
The agreement includes general wage increases of 10.5 per cent over three years, plus a $5.50 per hour wage grid reset effective April 1, 2025, to address wage compression and improve competitiveness with other provinces.
New retention measures introduced
The tentative agreement introduces several measures aimed at keeping experienced workers in the health system, including service retention premiums of an additional two per cent after 10 years of service and another two per cent after 15 years.
A new full-time commitment pay of $1.07 per hour worked will be offered on a trial basis until March 31, 2026. The deal also increases shift premiums to $2.25 per hour for shift work and $3.50 per hour for weekend shifts.
“This tentative agreement reflects the power of collaboration and our shared commitment to improving health care for all Islanders. CUPE members play a vital role in every corner of our health system, and I want to sincerely thank them for their continued dedication. This agreement provides meaningful recognition of their work—through better wages, improved conditions, and a renewed focus on retention. Together, we are building a stronger, more resilient health system that values those who deliver care and supports better access to care for Islander today and into the future,” said Health and Wellness Minister Mark McLane.
Agreement follows difficult period
Union leaders said the agreement comes after a challenging period that included the COVID-19 pandemic, rising living costs and staff shortages, with workers going more than two years without a contract.
“It has been a very difficult five years for our members. We went through COVID-19, rising living costs, staff shortages, and more than two years without a contract,” said Robyn Sharpe, President of CUPE Local 1051. “This investment recognizes the critical role our members play in the health system and gives them the respect and support they deserve.”
John MacKenzie, Chief Shop Steward for Local 805 and long-time member of the bargaining team, called the agreement historic.
“This was one of the most difficult rounds of negotiations we’ve faced, but it resulted in a historic agreement that our members have earned. I am not the only one who feels that this deal will be life-changing for workers. It’s an exceptionally good deal, and I’m happy to see that Health PEI and the Province are investing in their front-line staff,” said MacKenzie.
Health PEI welcomes collaborative approach
Health PEI’s chief executive said the agreement demonstrates what can be achieved through collaboration.
“CUPE members are highly valued members of our health-care team across Prince Edward Island,” said Melanie Fraser, CEO of Health PEI. “This tentative agreement shows what we can achieve when we work together to find solutions. We remain committed to building a more sustainable health system for all Islanders.”
The agreement also includes a $500 retiree return incentive and establishes a $130,000 annual professional development fund with structured reporting.
Negotiations resumed collaboratively ahead of a scheduled interest arbitration hearing in October 2025, with support from the Government of Prince Edward Island and Treasury Board providing an updated mandate.
