As MPI battles a $130-million loss and seeks a three per cent rate hike, recent figures show last year’s 10-week strike cost the Crown corporation more than $10 million in back pay.
During the first-ever strike by unionized MPI employees, the public insurer spent $1.2 million on consultants and $593,000 on replacement workers to maintain operations, according to the corporation’s July 5 general rate application.
MPI spent $10 million in retroactive payment for unionized employees after a new contract was ratified on Nov. 1.
“This could have all been avoided had the employer come to the table with a fair offer,” said Kyle Ross, president of the Manitoba Government and General Employees’ Union.
Figures laid out in the MPI document show the corporation saved about $17 million in labour costs and another $7 million on other external costs during the strike, which lasted from August to November.
MPI has applied to increase overall vehicle insurance rates by three per cent, citing the need to address “a steady and prolonged rise in the cost of claims as well as the cost of labour, raw materials and technology.”
In its 2023 annual report, MPI says the strike, along with a record number of hail claims just days before employees walked off the job, resulted in a net loss of $130 million.
An Aug. 24 a hail storm struck the northeastern part of Winnipeg, resulting in more than 15,000 claims, with more expected to come.
Four days later, about 1,700 employees walked out amid unsuccessful contract negotiations.
Union workers returned to their posts on Nov. 3 after voting on a new collective agreement, which included general wage increases of 13 per cent over four years, signing bonuses of $1,800 each, plus two weeks worth of “recognition pay” for the time spent on strike with no bargaining taking place because of the provincial election and government transition.
Without the labour disruption, MPI would have spent $47.6 million on staff wages during the 10-week period, but instead spent $15.8 million in August, $3.2 million in September and $6 million in October on wages, overtime and replacement workers, for a total of $25.2 million.
Ross called the fiscal report unfortunate.
“Manitobans and these workers now have to face the cost of the strike,” he said. “There’s a lot of work that needs to get done to get that corporation back and running like they used to.”
MPI spokesperson Kristy Rydz said the strike exacerbated backlogs created by the hail storm, including driver testing, adjusting and estimating appointments, and the corporation is still working through it.
Progressive Conservative MLA Doyle, the opposition critic for MPI, said he was blindsided by the figures.
During a committee meeting in March, MPI officials indicated there would be a financial surplus and, potentially, a fourth rebate sent to Manitoba drivers, said Piwniuk (Turtle Mountain).
“Where’s the accountability here? How much did this strike really cost us?” he said.
Piwniuk also claimed he wasn’t informed hail claims would dominate MPI’s finances.
MPI CEO Satvir Jatana and board chair Carmen Nedohin were not available for interviews Friday.
Piwniuk said he has concerns about recovering the costs and how long it will take to clear the backlog, and about the corporation’s operations, overall.
“Managing the backlog is important, but so is managing costs,” he said, adding he’s requesting a committee meeting with Justice Minister Matt Wiebe, who oversees MPI, and corporation officials.
In a statment, Wiebe’s office accused the former Tory government of mismanaging MPI, which led to the strike. The NDP deserves credit for now addressing those issues, it said.
“We replaced the board, resolved the strike with a fair deal and are working hard to get MPI back on track,” the statement said.
“Affordability will always be our top priority for MPI. That’s why we have put in place new leadership, who have reached a new deal with employees and implemented a more streamlined management structure to better serve Manitobans.”
A January organizational review found MPI was suffering from an inefficient management structure affecting its bottom line, which led to the elimination of 32 management positions.
Nicole Buffie
Multimedia producer
Nicole Buffie is a multimedia producer who reports for the Free Press city desk. Born and bred in Winnipeg, Nicole graduated from Red River College’s Creative Communications program in 2020 and worked as a reporter throughout Manitoba before joining the Free Press newsroom in 2023. Read more about Nicole.
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