Groves Memorial Community Hospital v. Unifor Local 1106

Unifor sought a $4.80/hour RPN adjustment and a $7.00/hour skilled trades bump at this small community hospital in Fergus — arguing recruitment and retention were at risk. The board awarded something, but significantly less than asked.

Background

Groves Memorial Community Hospital is a community hospital located in Fergus, Ontario, which provides a comprehensive range of health care services including inpatient, outpatient, diagnostic, surgical, oncological and other services, emergency care and obstetrical care. The hospital is part of the Wellington Health Care Alliance, which is comprised of Groves Memorial Community Hospital and North Wellington Health Care (which operates two hospital sites, one in Mount Forest and another in Palmerston).

Unifor represents approximately 160 service employees in this bargaining unit, who work as registered practical nurses, personal support workers, pharmacy technicians, MDRD technicians, housekeeping aides, dietary aides, and tradespersons, among other classifications. The Union also represents a separate bargaining unit of clerical employees at this hospital.

The parties proceeded to interest arbitration to resolve the renewal of the collective agreement that expired on March 31, 2024. The parties reached agreement on a number of issues during negotiations, but certain outstanding compensation-related issues were submitted to the Board for determination.

Issues in Dispute

The outstanding issues before the Board were all Union proposals related to compensation. In addition to general wage increases of 3% in each year of the collective agreement, the Union sought wage adjustments for Registered Practical Nurses (RPNs) and skilled trades, as well as the introduction of mentorship and preceptorship premiums. The Employer opposed the Union’s proposals.

The Employer acknowledged that there was a pattern of 3% general wage increases for the years under consideration and that its collective agreements with other unionized groups at the hospital, including the clerical unit represented by Unifor, provided for general wage increases at that level. However, the Employer submitted that the economy had changed for the worse since those agreements were reached, such that the 3% pattern might no longer be appropriate.

RPN Wage Adjustment

The Union proposed a $4.80 per hour adjustment for RPNs to bring their wages to an appropriate level commensurate with skill and responsibility. The Union argued that an RPN wage adjustment was warranted due to recruitment and retention issues at the hospital, reflected in the high number of job postings in 2025, the short tenure of most nurses in the bargaining unit, and high levels of overtime worked in 2024 and 2025. The Union pointed to RPN wage rates at other hospitals that were higher than the rates at Groves Memorial.

The Employer disputed that there was a need to adjust RPN wages, emphasising that RPNs had received a $2.18 per hour wage adjustment to address recruitment and retention problems in September 2023 during the last round of collective bargaining. The Employer submitted that much of the Union’s evidence predated the 2023 wage adjustment and that the 2025 job postings were for temporary and casual positions typically used to cover short-term absences, not indicative of a recruitment and retention problem. The Employer urged the Board to consider total compensation and noted that the adjustment would be very costly for a hospital already in a deficit position.

Skilled Trades Adjustment

The Union sought a $7.00 per hour wage adjustment for the four or five employees working as skilled tradespersons, pointing to significantly higher wage rates for skilled tradespersons at other hospitals and increases in service requests and overtime. The Employer maintained that a wage adjustment for skilled trades was not warranted at this community hospital, where employees spend a significant portion of their time doing general maintenance work. The Employer also noted it had not had any difficulty attracting and retaining skilled trades employees at current wage rates.

Mentorship and Preceptorship Premiums

The Union noted that since 2009, there had been a provision in the collective agreement acknowledging the Employer’s ability to assign RPNs to formal mentorship roles, but there was no premium associated with the performance of these additional duties. The Union sought the standard mentorship premium of $2.00 per hour.

The Union also sought introduction of a preceptorship premium, requiring the Employer to pay RPNs the standard $2.00 per hour premium when assigned to supervise nursing students. The Union noted that a preceptorship premium at the $2.00 level had been introduced at many relevant comparators, including in Arbitrator Kaplan’s 2024 central award between The Participating Hospitals and SEIU.

The Employer acknowledged it was normal for hospitals to pay some premium for mentorships and preceptorships but submitted these should be introduced at a lower rate before moving to the top of the range.

Key Award Terms

The arbitrator awarded the following terms for the period April 1, 2024 to March 31, 2026:

Wages:

• 3% general wage increase effective April 1, 2024
• 3% general wage increase effective April 1, 2025

Special Wage Adjustments:

• Skilled trades: $0.50 per hour increase effective April 1, 2024, before application of the general wage increase
• RPNs: $1.00 per hour increase effective October 1, 2025

Taking all relevant factors into account—including recruitment and retention, comparability, and replication—the Board found that a $1.00 wage adjustment for RPNs effective October 1, 2025 was appropriate to bring RPNs more in line with relevant comparators. The Board was persuaded that some catch-up was warranted for skilled trades employees, whose wages lagged those at relevant comparators, including hospitals in close proximity.

Mentorship Premium:

• Effective date of award: $1.00 per hour mentorship premium introduced

The Board amended Article 31 to provide that the hospital will pay RPNs assigned to formal mentorship roles a premium of $1.00 per hour in addition to their regular salary and applicable premium allowance.

Preceptorship Premium:

• Effective date of award: $2.00 per hour preceptorship premium introduced (new provision)

The Board awarded a new collective agreement provision requiring the hospital to pay nurses a premium of $2.00 per hour for all hours spent supervising nursing students. The Board found that the Union’s proposal for a new preceptorship provision had become standard among relevant comparators and ought to be awarded.

 

Citation: Price (Chair) · 2026 CanLII 225