Mediation ended last night when mediator Vince Ready declared an impasse.

NEU President Douglas Manson Workman says that the parties are not very close on a number of key issues and that the Union will be assessing their options in a conference call later today.

While there are cost issues between the parties, there are some principled issues which are not resolved as well... "the Government encourages employees to volunteer and participate in community activities but the Employer refuses to authorize additional leaves to let this happen. The Government encourages employees to participate and initiate IQ group activities and the Employer won't provide any more time for this to happen."

On the major economic issues, we all recognize the high costs of living in the north. It's the major focus for these negotiations.

"We are all aware of the cost increases which have taken place since 2008 and of the projected increases coming for power, airfares, and food transportation. Coming out of the last contract, the parties recognized that the Nunavut Northern Allowance needed to be reviewed and agreed to commission a study which would make recommendations to the parties who were to "consider implementing the recommendations". The study provided the parties with a number of options. The Employer has now refused to live up to any commitment and is proposing to freeze the allowance at 2010 levels four years."

Contract settlements in Nunavut in particular and the North in general have averaged well above three percent going back to 2010 and through 2011 and into this year as well. Union data indicates that contract settlements averaged 3.88 % in 2010, 3.28 % in 2011, 3.11 for 2012 and 2.67% going into 2013.

The Union has fairly proposed a three year settlement of 3.25% a year.

The employer is offering 1%, 1% 2.0% and 2.75% over four years.

Contracting Out

The Government says it wants a fully staffed workplace but struggles to keep 70% of its jobs filled. The employer's reality is to backfill a large number of positions by hiring contractors from outside the north, because the rates of pay and the Northern allowance are not enough to attract and retain enough employees to do the work. This practice usually results in costs that substantially exceed what it would cost to hire a regular employee to do the work; this contractor money often leaves the north and as a result, doesn't stay here and support the northern economy, leaving the northern worker to survive on what's left in the coffers.

The Union is ready to return to the table, at any time, to deal with a fair offer from the employer and we are encouraging them to review their position to avoid any disruption in public services.