Viterra Canada and grain union successfully ratify revised contract

CANADA-Viterra Canada and the Grain and General Services Union (GSU) Locals 1 and 2 have successfully reached a ratified agreement, ending the uncertainty that loomed over the industry in recent weeks.

Viterra Canada’s revised contract offer, which was put to vote, gained approval through a membership vote, with results officially communicated to the company on January 19. 

The agreement, spanning four years, has been hailed as a landmark deal that acknowledges the individual contributions of the 436 employees represented by GSU Locals 1 and 2 in Saskatchewan.

A key aspect of the agreement is the incorporation of a pay-for-performance compensation structure, ensuring that employees are recognized and rewarded for their dedication and efforts. 

The structure also guarantees continued eligibility for an annual bonus payment under the company’s Short-Term Incentive Plan, reinforcing the commitment to employee welfare.

The road to this agreement was not without its challenges. The GSU had initially postponed a potential strike on January 5, following negotiations facilitated by a federal mediator on January 3 and 4. 

Subsequently, Viterra presented a revised four-year contract, featuring pay increases of 4.5% in the first year, 3.75% in the second year, and 2.5% in each of the final two years.

Jordan Jakubowski, Vice President of Human Resources for Viterra Canada, expressed satisfaction with the resolution, stating, “We’re very pleased to have reached a long-term agreement with our employees, one that we believe is fair and reasonable, taking into account their needs while balancing the needs of our business through long-term labor stability.”

Viterra Canada, Inc., with 78 grain storage facilities and a capacity of 117.08 million bushels of licensed grain storage, holds the 13th position among North America’s largest grain handling companies according to Sosland Publishing Co.’s 2024 Grain & Milling Annual. Saskatchewan, as Canada’s largest grain-growing province, plays a pivotal role in the country’s agricultural landscape.

It’s worth noting that this development comes at a time when Viterra is undergoing ownership changes. Currently owned by Switzerland-based commodity trading giant Glencore PLC since 2012, the company is in the process of being acquired by Bunge Global SA in an US$18 billion deal, subject to regulatory approval in Canada and other jurisdictions.

The successful resolution of the contract negotiations is expected to foster a positive working relationship between Viterra and its employees, ensuring continued operational efficiency as the company undergoes ownership transitions.

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