An interest arbitration board has awarded a three-year collective agreement between 32 Ontario hospitals and SEIU Healthcare, delivering annual wage increases and enhanced benefits to approximately 16,000 clerical and service workers.
The award, issued Dec. 15, covers the period from Jan. 1, 2026, to Dec. 31, 2028, and resolves outstanding issues following unsuccessful collective bargaining and mediation attempts. The previous agreement expired Dec. 31, 2025.
Wage and premium increases
The board awarded wage increases of 2.25 per cent effective Jan. 1, 2026, followed by two per cent on Jan. 1, 2027, and 1.75 per cent on Jan. 1, 2028. Retroactive pay will be distributed within four full pay periods of ratification.
Several premiums received increases effective Jan. 1, 2026. Standby premium increased by 15 cents to $3.45, while standby on a holiday rose by the same amount to $5.05. The charge nurse premium doubled from $2 to $4.
The safety footwear allowance for full-time and regular part-time employees will increase by $40 to $160, effective Jan. 1, 2027.
Vacation and benefits enhancements
The agreement accelerates vacation entitlement thresholds. Employees will now receive five weeks of vacation after 11 years of service, down from the previous 12-year requirement. The seven-week vacation tier now begins at 25 years of service rather than 28 years, both changes effective Jan. 1, 2026.
For part-time employees, the hours-based vacation thresholds were similarly adjusted. The 10 per cent vacation tier now begins at 20,700 hours instead of 18,975 hours, while the 14 per cent tier starts at 48,300 hours rather than 43,125 hours.
The agreement expanded several dental and mental health benefits. Orthodontics coverage increased by $500 to $2,500, while coverage for implants, crowns and bridgework rose by the same amount to reach the $2,500 maximum. Denture coverage jumped by $1,500 to $2,500. Mental health coverage will increase by $100 to $900 on Jan. 1, 2026, with a further $100 increase to $1,000 the following year.
Bereavement leave expansion
The board amended bereavement leave provisions to provide greater flexibility and equity. The agreement now grants four consecutive working days of paid bereavement leave for the death of a spouse, child or parent, with three days for other immediate family members including siblings, in-laws and grandparents. One day of bereavement leave applies for the death of an aunt, uncle, niece or nephew.
“Notwithstanding the above, individuals will be granted flexibility to distribute their bereavement leave entitlement over two occasions, not exceeding their entitlement above, in order to accommodate religious and cultural diversity,” the award stated.
New domestic violence protections
The parties agreed to introduce new provisions addressing domestic and sexual violence. The article recognizes that such violence “is a serious issue that can manifest in various ways, including but not limited to, disruptive phone calls, harassing emails, threats, inappropriate visits, violent confrontations, violent offences between current and/or former partners.”
Hospitals must take reasonable precautions to protect employees when aware of domestic violence that could expose workers to physical injury. Available supports include work accommodations to schedules or duties, safety planning, training, referrals, risk assessments, health care benefits, support in reporting to law enforcement, and various leave options under the Employment Standards Act.
Shift and overtime modifications
The agreement clarified that employees will receive both shift and weekend premiums when working hours eligible for both. Weekend premium remains at $3.14 per hour for each hour worked between midnight Friday and midnight Sunday.
New language addresses contiguous overtime, providing double-time compensation for additional overtime hours worked contiguous to an overtime shift within a 24-hour period.
The parties also amended language regarding daylight saving time transitions, specifying that employees “shall be paid straight time for the actual hours worked during a shift impacted by the changeover.”
Health and safety provisions
The agreement renewed multiple letters of understanding and included extensive health and safety language referencing the Occupational Health and Safety Act. Provisions address personal protective equipment, infectious disease protocols, pandemic preparedness, and workplace violence protections.
The agreement includes detailed attendance management provisions exempting certain absences from attendance programs, including those arising from medically-established serious chronic conditions, WSIB-covered injuries, catastrophic events, and required quarantines for communicable diseases.
Both employer and union nominees dissented from the award.
For more information, see Participating Hospitals v SEIU Healthcare, 2025 CanLII 129631 (ON LA).
