CONCILIATION BOARD REPORT

BETWEEN:

MOUNT ALLISON UNIVERSITY

(hereinafter called the “Employer”)

AND:
MOUNT ALLISON FACULTY ASSOCIATION
(hereinafter called the “Association”)

SPOKESPERSONS: For the Employer

J. Gordon Petrie, Q.C.
Hans vanderLeest

For the Association

Stephen Law

CONCILIATION BOARD: James C. Oakley, Chairperson

Chris Ferns, Association Nominee
Eric Durnford, Q.C., Employer Nominee

DATED: January 27, 2011

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The Conciliation Board was appointed pursuant to Section 62 (3) of the Industrial Relations Act,
RSNB, c. I-4 (the “Act”) by the Honourable Martine Coulombe, Minister of Post Secondary
Education, Training and Labour, Province of New Brunswick. The Board Nominees were appointed
on November 9, 2010, and the Board Chairperson was appointed on November 17, 2010. The
Conciliation Board was appointed in the matter of a dispute between Mount Allison University and
Mount Allison Faculty Association regarding two bargaining units referred to as Unit 1 - Full Time
and Unit 2 - Part Time. The parties agreed that the conciliation proceedings would apply to both
units. Many of the issues in dispute are common to both units, while some issues apply to only one
unit.

The Board met with the parties on December 9 and 10, 2010 and January 13, 14, and 15, 2011. The
Board endeavoured to bring about agreement between the parties in relation to the matters referred
to it pursuant to Section 66 (1) of the Act. The parties resolved several issues and made submissions
to the Board on issues that were not resolved. The Board would like to extend its appreciation to the
representatives of the parties for their cooperation and assistance. This report represents the findings
and recommendations to the Minister by the Conciliation Board, under Section 68 (1) of the Act.
The report is submitted to the Minister pursuant to the timelines established when the Conciliation
Board was appointed, in particular that the time limit for the Board to file its report would not be
extended beyond January 31, 2011.

In this report, the Board will make recommendations that, if acceptable to the parties, will comprise
the terms of the Collective Agreements. The Board’s recommendations are made on the basis that
the common understandings reached between the parties as to matters that have been resolved
subject to settlement of the issues addressed below will be included in the Collective Agreements,
and that there are no further outstanding issues.

The most recent Collective Agreements for Unit 1 and Unit 2 were for terms of 3 years commencing
July 1, 2007 and ending June 30, 2010. The parties had several meetings on their own, and with the
assistance of a conciliator, for the purpose of collective bargaining, prior to the appointment of the
Board.

This report will address the following issues: (1) Term of the Collective Agreements (Unit 1 - Article
40, Unit 2 - Article 41); (2) Salary Scales (Unit 1 - Schedules); (3) Professional Development
Reimbursement (PDR) (Unit 1 - Article 29.06); (4) Dependent Care (Unit 1 - Article 25, Article 28,
Letter); (5) Part Time Tuition Discount Policy; and (6) Part Time Stipend and Seniority Increments
(Unit 2 - Article 30).

Mount Allison University is a primarily undergraduate institution, located in Sackville, New

Brunswick, offering programs in the Faculties of Arts, Science and Social Science. The University
has an established reputation, and has been frequently ranked number 1 in its category in the
Maclean’s Magazine report. There are approximately 160 full time academic staff (composed of
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faculty and librarians) and approximately 50 part time academic staff. There are about 2500
undergraduate students. There are about 10 to 15 graduate students in specific programs in the
Faculty of Science.

When making its recommendations, the Conciliation Board is guided by the replication principle.
The Board will attempt to replicate as closely as possible the agreement that the Board expects the
parties to reach in the process of collective bargaining. It is important to note that the Conciliation
Board is not an interest arbitration board. The recommendations in this report are not binding on the
parties, until such time as they are accepted by the parties. The parties continue to have the right
of free collective bargaining, as set out in the Industrial Relations Act. An interest arbitration board
addresses a different situation, because it attempts to replicate what the parties would do if they had
free collective bargaining, and its decision is binding. The primary concern of the Conciliation
Board is to make recommendations that will be useful to the parties to effect a settlement. Therefore
the Board has considered that its recommendations should correspond to what each party would
likely persuade the other party to accept in bargaining. When considering the rationale to support
its recommendations, the Conciliation Board has given the greatest weight to the factors likely be
accepted as persuasive by the parties, as indicated by the presentations to the Board.

1. Term of the Collective Agreements

The Association proposes a 2 year term and the Employer proposes a 4 year term of the Collective
Agreements. Prior collective agreements between the parties have mostly had 3 year terms, although
there have been exceptions, when the parties agreed to shorter or longer terms. The Board
recommends a 3 year term commencing July 1, 2010 and ending June 30, 2013.

2. Salary Scales

The salary scales are set out in the schedules to the Full Time Collective Agreement. There are
separate librarian and faculty salary scales. In the faculty salary scale there are 24 steps from the
Assistant Professor Step 1 level (the “floor”) to the Professor Step 14 level (the “ceiling”). The
faculty scales set out step increases for Lecturer, Assistant Professor, Associate Professor and
Professor. Step increases are also set out for the positions on the librarian salary scales. There is a
ratio of 2.124 between the Professor Step 14 level and the Assistant Professor Step 1 level. The
Association has proposed that there be a greater salary increase at the floor of the salary scales than
at the ceiling, and that this result could be achieved by a reduction in the ratio. The Employer
maintains that salaries at all levels compare favourably to those at the comparator universities. The
Employer also has concerns that any reduction in the ratio will have a significant impact on total
salary mass, given that various components of the salary remuneration package, such as professional
development reimbursement, are calculated by reference to the floor.

The Board has reviewed salary information for comparator universities. One of the persuasive
rationales accepted by the parties in bargaining is to compare Mount Allison salaries with salaries
paid at other universities. The parties agree that it is important that the University recruit and retain
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the best qualified faculty and librarians in order to maintain its high ranking among primarily
undergraduate universities. The Employer considers its competitors for recruitment and retention
purposes, and therefore the most appropriate comparators, to be the Maritime primarily
undergraduate universities of Acadia, Mount Saint Vincent, St. Francis Xavier, Saint Mary’s,
University of Prince Edward Island, St. Thomas, Moncton and Cape Breton. Both parties presented
information comparing Mount Allison University salaries with this group of comparators. The
Association submits that the appropriate comparators include other New Brunswick Universities,
in particular, the University of New Brunswick (“U.N.B.”) which is ranked in the comprehensive
category of universities. The Board has considered the Report of the Conciliation Board in
University of New Brunswick and Association of University of New Brunswick Teachers dated
January 12, 2011. Both parties referred to this Report in their presentations. The U.N.B. Report had
the effect of an interest arbitration award, because the parties had agreed in advance to be bound by
the Report. The Association also submits that the primarily undergraduate universities across
Canada are appropriate comparators, but this was disputed by the Employer.

The Board has considered recent salary adjustments in faculty bargaining units at other universities.
At Saint Mary’s, Cape Breton and St. Francis Xavier, in 2009, the parties negotiated 2.9% annual
increases. At Acadia University, the parties recently negotiated annual increases of $500 over 3
years, representing 0.5% annual increases. The Conciliation Board Report for U.N.B. sets out semi
annual increases for a 4 year term commencing July 1, 2009, corresponding to 0% in the first year,
and 2.5%, 3.5% and 3.5% in the next 3 years, for a total of 9.5% (excluding the effect of
compounding). The increase in the Mount Allison salary scales for the 2009-2010 year was 3%.
The Employer submits that, if U.N.B. is used as a comparator, when the 3% already received by the
Association is included, there is a remainder of 6.5% available for the 3 year term of 2010 to 2013.

The parties refer to the effect of inflation and various CPI statistics. For example, the Board was
informed that the annual increase in CPI for Canada as of January, 2010 was 1.9% and for New
Brunswick as of November, 2010 was 1.4%. The Association submits that salary increases should
at least keep pace with forecasted inflation rate increases of about 2% annually.

The parties discussed other factors. The Employer refers to the local cost of living, the general
economic conditions in the Province of New Brunswick, the Provincial Government fiscal situation,
the Government employee wage freeze, and the effect of any reduction in the Government grant to
the University. The Employer notes that student tuition fees are the highest among the Maritime
primarily undergraduate universities. The Association points out that student enrollment has
increased, with no increase in faculty complement, and the University benefits from a corresponding
higher productivity. The Association also points out that its members have a defined contribution
pension plan. The effect is that the members, and not the Employer, bear the risk of downturn in the
financial markets. The Association submits that the University is in a good financial position, with
an excess of revenue over expenses on the most recent annual financial statements. The Employer
does not accept the Association’s assessment of its financial situation, and submits that there are
significant deferred maintenance, structural deficit and other financial issues.
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Having considered the submissions, and the replication principle, the Conciliation Board
recommends that the salary scales be adjusted annually by the following amounts:

July 1, 2010 2.5%

July 1, 2011 2.5%
July 1, 2012 2.5%

3. Professional Development Reimbursement (“PDR”)

The Association has proposed an increase in the PDR from 4.0% to 4.25% of the Assistant
Professor, Level 1 salary. The Employer submits that the PDR is already significantly higher than
at all other comparator universities. The Employer proposes fixed PDR dollar amounts that are not
linked to the floor of the salary scales. The Employer agreed during negotiations to provide a special
professional development reimbursement account during an employee’s sabbatical leave in addition
to the regular PDR. Having considered the submissions, and the amount of the increase, the Board
recommends that the PDR be increased to 4.25% of the Assistant Professor Level 1 salary.

4. Dependent Care

The parties acknowledge the importance of child care, and have discussed several issues with respect
to dependent care and child care services for employees. The parties have agreed on some, but not
all items, in a package of proposals for Articles 25 and 28 of the Collective Agreement. The Board
was informed that the York Street Childrens’ Centre (“York Street”) operates as a not for profit child
care centre in a facility where the University provides various services, including maintenance and
custodial services. Although priority is given for Mount Allison University employees, there are not
sufficient spaces to meet the demand, and some faculty and librarians make other child care
arrangements. The Association proposes a grant of $1,200 for its members who make other child
care arrangements, on the basis that the amount of the grant is approximately equal to the amount
of the University subsidy of each child at York Street. The Association also proposes that the
University commit in writing to continue its support of York Street and provide additional financial
support. The Employer objects on the basis of cost and other grounds. The Association has also
proposed an extension of child care leave from 30 to 35 weeks, which the Employer maintains is not
appropriate given the fact that the existing child care leave provisions are more generous than at all
other comparator universities.

The Board has considered the submissions on these issues and makes the following
recommendations:

- Employer to accept extension to child care leave with 95% salary from 30 to 35 weeks
- Association to accept Employer proposal for 30 days notice to extend maternity leave
- Employer to provide a letter to be attached to the Collective Agreement in which the
Employer agrees “to continue to support the York Street Childrens’ Centre”. Employer does
not commit additional financial support to York Street.
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5. Part Time Tuition Discount Policy

The parties discussed the issue of a tuition fee discount in bargaining, but did not reach agreement.
The Board was informed that the current status is consistent with that at comparator universities in
the Maritimes. The recommendation of the Board is that there will be no tuition fee discount for part
time employees.

6. Part Time Stipend and Seniority Increments

The part time stipend amount at 8.5% of the Assistant salary floor is at or near the top compared to
the primarily undergraduate universities in the Maritimes. It is noted that the stipend amount will
increase when the salary floor increases. The Board recommends that the stipend amount remain
at 8.5%. The part time stipend has a seniority increment, currently at 2.5% and 5%. The Association
and the Employer have made proposals with respect to adjusting the seniority increment. The Board
recommends that the seniority increment be 4.5% and 9%.

Summary of Recommendations

The Board recommends the following:

1. The term for the Collective Agreements shall be 3 years commencing July 1, 2010 and
ending June 20, 2013.

2. The salary scales for Unit 1 shall be adjusted as follows:

July 1, 2010 2.5%

July 1, 2011 2.5%
July 1, 2012 2.5%

3. The Professional Development Reimbursement (“PDR”) shall be increased to 4.25% of the

Assistant Professor Level 1 salary.

4. The issues related to dependent care shall be resolved as follows:

- Employer to accept extension to child care leave with 95% salary from 30 to 35
weeks
- Association to accept Employer proposal for 30 days notice to extend maternity leave
- Employer to provide a letter to be attached to the Collective Agreement in which the
Employer agrees “to continue to support the York Street Childrens’ Centre”.
Employer does not commit additional financial support to York Street.