Minister concerned about rejected wage rollback vote

REGINA Finance Minister Donna Harpauer says “no decisions have been made” regarding layoffs in light of a large union rejecting the province’s proposed 3.5-per-cent wage reduction.

The International Brotherhood of Electrical Workers (IBEW), a union representing almost 1,800 SaskPower workers, voted overwhelmingly against the rollback, first proposed by the Saskatchewan Party government in the unpopular 2017-18 budget, which aims to eliminate the province’s $1.2-billion deficit over three years.

Announcing a 3.5-per-cent wage rollback in the public service was arguably the biggest initiative in the budget.

IBEW is one of 25 public-sector unions negotiating with the province, which originally budgeted to save $250 million through the cut. That target was later reduced to $125 million, in part over concerns unions were not willing to accept a reduction.

Harpauer said collective bargaining with public-sector unions will continue but “it doesn’t look promising.”

A $300-million contingency fund was built into the budget and it is possible Harpauer dips into that money as a way to cover the costs tied to unions unwilling to take the 3.5-per-cent cut.

“It’s concerning, because it’s large dollars and resource revenue is down and so we’re looking for that money,” she said, adding the government was hopeful unions would follow the lead of MLAs who took a wage reduction.

The 3.5-per-cent wage cut is the carrot being dangled by the government to its public-sector unions, but the province also has layoffs as a possibility in its back pocket.

The minister said no decisions have been made regarding layoffs.

Instead she said: “We want to keep all of our workers; they do a great job, but somehow we also have to make ends meet.”

Harpauer is in a unique position for a finance minister, particularly when it comes to dealing with the 3.5-per-cent wage cut and government’s three-year, back-to-balance plan. Each of the five people running to be the leader of the Sask. Party has their own plan for the public sector and the deficit. And whoever wins the Jan. 27 leadership vote will be the new premier, and Harpauer’s boss.