The Saskatchewan Labour Relations Board has dismissed an unfair labour practice application filed by the Saskatchewan Joint Board Retail, Wholesale and Department Store Union (RWDSU), ruling that Cornerstone Credit Union Financial Group (CCU) did not breach the statutory freeze provisions of The Saskatchewan Employment Act by delaying annual bonus payments during collective bargaining.
The RWDSU, representing about 97 employees across four CCU branches in Yorkton, Ituna, Kelliher, and Wynyard, filed the application alleging CCU breached the statutory freeze by postponing payments under its “Variable Compensation – Strategic Incentive Program” (SIP).
These annual performance bonuses were typically paid in February but were delayed until after the conclusion of bargaining for a new collective agreement.
During bargaining sessions in early 2024, CCU informed the union that SIP payments scheduled for February 23 would be withheld until a new agreement was ratified. The union objected, citing this as a unilateral change in employment conditions and filed both an unfair labour practice complaint and a grievance.
History and administration of the SIP
The SIP, operational since at least 2000, applies to all CCU employees, unionized and non-unionized, based on prior-year performance. While payments have historically been made annually, CCU maintained a practice dating back to 2012 of threatening or announcing delays during bargaining years. In 2017, CCU delayed SIP payments to another union, UFCW, until an agreement was reached. In 2021, CCU paid no bonuses at all to any employees.
CCU argued the delay was consistent with past practices and based on financial prudence—specifically, uncertainty around affordability until bargaining concluded. Union representatives countered that delaying bonuses was a tactic to pressure employees into quicker settlements, a claim partially acknowledged by the board.
Board’s analysis and decision
The board found the SIP to be a “privilege,” not a legally enforceable “condition of employment,” because the bonuses had never been formally included in the collective agreement. Therefore, withholding SIP payments did not violate statutory freeze provisions. Additionally, the board stated employees had a “reasonable expectation” of potential delays based on past bargaining practices, even though RWDSU members had consistently received payments in February previously.
Rejecting the employer’s request to defer the matter to arbitration, the board concluded that arbitration would not be appropriate, as the dispute involved employer policy external to the collective agreement. The decision maintained that the “essential nature” of the dispute involved bargaining tactics rather than interpreting specific terms within the collective agreement.
Ultimately, the board dismissed the union’s unfair labour practice application.
Dissenting opinion
Board member Aina Kagis disagreed, arguing that the SIP constituted an established condition of employment rather than a privilege. Kagis emphasized that CCU’s stated rationale of affordability was disingenuous, as the SIP was budgeted based on previous-year performance. Kagis viewed the delay explicitly as a tactic designed solely to pressure the union into quicker settlement.
She concluded that withholding the bonus violated the statutory freeze and should have resulted in granting the union’s application for unfair labour practice.
For more information, see RWDSU v Cornerstone Credit Union, 2025 SKLRB 13 (CanLII).
