July 30, 2008
No 5
Protecting our benefits
Our collective agreement with Canada Post guarantees extended benefits to our members, including coverage for prescription drugs, physiotherapy and dental care.
Canada Post would have PSAC members believe that our health and insurance benefits under Article 37 of the collective agreement make the employer uncompetitive compared to other companies that do the same work.
Is this true? Not really.
Canada Post's current benefit costs are similar to the payroll costs of other large employers. The company will realize significant tax savings once changes to the Alberta provincial health plan come into effect in 2009. PSAC/UPCE's membership represents approximately 4 per cent of Canada Post's total payroll. This means that the total benefit plan costs of PSAC/UPCE members are not as critical in affecting the company's bottom line.
However, premium costs in Canada have been climbing upwards at a disturbing rate. On average, they are going up from 10 to 15 per cent annually with no end to the increases in sight. This trend, if it continues will have a direct impact on the sustainability of Canada Post's health plan benefits.
These increases often go to third parties such as insurance or pharmaceutical companies – money that could be better used to improve alternative health care options for member benefits such as drug cards.
Your bargaining team has begun discussions with Canada Post on these complex benefit issues and they will be guided by the following principles:
We will respect, recognize and support the diversity of all member benefit needs. The legitimate needs of one group of members will not be traded off to meet the needs of another group.
For example:
- younger members with dependants who require support for the purchase of dental braces, asthma or allergy medications;
- members who require ongoing support for medical conditions such as high blood pressure, arthritis or depression; and
- members or their dependents who require vision care such as prescription glasses or contact lenses.
We will maintain the current prescription drug entitlements for members.
We will ensure that the plan remains viable and sustainable.
We will work hard to make sure the health and benefit plan is even more accessible and easy to use.
We will work to improve dental care and vision care entitlements.
We will ensure that Canada Post provides better education and communications to support to our members when they access the plan.
The average age of a PSAC member working for Canada Post is 47. At either end of the age continuum there are specific medical and benefit needs that are quite different, but can be supported through a holistic plan.
The bargaining team is committed to negotiating an effective, sustainable plan that works for the people who work for Canada Post, today and in the future.
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Date Modified : 2008/07/30
Public Service Alliance of Canada | 233, Gilmour Street, Ottawa, ONTARIO CANADA, K2P 0P1, Tel.: 1 888 604-7722 (PSAC)