Workers at the Masterfeeds Inc. manufacturing plant in Red Deer are set to vote on a proposed four-year collective agreement that would provide phased wage increases, enhanced dental coverage and higher shift premiums, according to an update from Local 401 of the United Food and Commercial Workers (UFCW).
Who the agreement covers
The bargaining unit represented by Local 401 includes production and plant-floor staff at the Red Deer facility: shippers and receivers, pellet mill operators, mixers, general labourers, baggers and employees in the warehouse and maintenance areas. The union says the agreement does not cover supervisors, managers, forepersons or staff in office, sales or security roles.
Proposed wage schedule and benefits
The union’s update says the employer has presented what it calls a final offer, which provides wage increases in each year of a proposed four-year contract. The increases are listed as retroactive to 1 May 2025. Key elements of the proposal include:
- Wage increases of 4.50% (May 1, 2025), 3.00% (May 1, 2026), 3.00% (May 1, 2027) and 3.00% (May 1, 2028).
- An increase to the shift premium for late/overnight hours (previously 80¢ per hour) to 95¢ after 90 days and to $1.00 in May of the following year.
- Life insurance coverage rising from $60,000 to $70,000 next May.
- Employer-paid dental premiums rising from 80% to 100%, eliminating employee contributions to dental premiums under the plan.
| Effective date | Wage increase |
|---|---|
| 1 May 2025 | 4.50% |
| 1 May 2026 | 3.00% |
| 1 May 2027 | 3.00% |
| 1 May 2028 | 3.00% |
"By the end of the new contract, assuming it is ratified, the only workers making under $30 an hour would be casual workers and brand new workers."
Context and bargaining history
The most recent collective agreement for the Red Deer plant expired in April 2025. Negotiations on a replacement contract did not begin until October 2025, more than five months after expiry, the union says. Local 401 notes the employer’s proposed total across the four years amounts to 13.5% in base wage increases (retroactive), which the union contrasts with a 40% wage increase it sought last October and with recent public sector settlements.
Local impact
Masterfeeds, headquartered in Ontario, employs more than 600 workers nationwide, including the Red Deer plant. The company supplies livestock feed and the outcome of the ratification vote will affect take-home pay, benefits and shift compensation for the represented workforce at the plant.
Local 401’s update indicates the proposed changes to dental coverage and the shift premium would be significant for employees who work overnight shifts or rely on employer-paid benefits. If ratified, the union says most experienced employees would earn at least $30 an hour by the end of the contract period.
The union did not provide detailed information in its public update about outstanding issues or the timetable for the ratification vote. Masterfeeds has not released a public statement in the union update circulated last week.
Members will decide whether to accept the employer’s offer when the vote is scheduled; until then, the existing contract terms continue to apply while negotiations and union communications proceed.
