A FAIR DEAL FROM UNIONS
The provincial government is expecting to run a $10.3-billion deficit this fiscal year. Wage increases for the thousands of unionized employees on the public payroll would push that figure higher, given that all salaries and benefits account for about half of the operating expenses.
More than 400 public-sector collective agreements will expire this year, presenting a tremendous challenge for government negotiators.
The election of the union-friendly NDP in 2015 was seen as good news for organized labour. Unfortunately for all Albertans, the economic downturn that has persisted for approximately two years makes wage increases untenable.
“They don’t have money available,” Ron Hodgins, the former executive director of the Alberta Union of Provincial Employees, says of the government. “They just don’t. And then you’ve got the unions who are looking at an opportunity that this is an NDP government and we’re going to get our due.”
AUPE president Guy Smith said he hopes to see a more “refined level of negotiations,” which will allow the parties to explore areas beyond wages, such as workload, health and safety and protection against bullying and harassment.
Those are constructive issues to focus on, and they can make a big difference in the workplace, even though they don’t always carry a financial cost. The problem with labour negotiations is that unless an agreement is reached, the task can end up in the hands of mediators or arbitrators, often compelled to recommend wage increases. The consequences for Alberta’s public ledgers, given the sheer number of workers involved, are worrisome.
Rather than face the risk of arbitrator-awarded pay hikes, it would be encouraging to see publicsector union leaders demonstrate fairness. They could persuade their members to seek no wage increases until the economy improves as a concession for not losing their jobs like so many of their fellow Albertans.
Two-year deals with zero pay hikes would be a tremendous show of goodwill.
Our public-sector workers are already well paid, after all, enjoying some of the highest compensation in the country. Further, most union contracts contain a salary grid, which adds to the wages of junior employees each year — often considerably. The existence of the salary grid means lesser-paid workers will continue to see their incomes climb, even with zero per cent increases in the contracts.
A voluntary wage freeze, along with no- or low-cost measures that improve the working environment, should be the goal as the government and its employees’ representatives broker hundreds of agreements.