Prentice appeases unions before budget

A conciliatory Premier Jim Prentice pledged to “reset the relationship” with public sector unions Thursday by killing a controversial labour bill as his government works to dig itself out of a massive budget hole weeks before an expected spring election.

The Alberta government will “immediately” repeal the controversial Bill 45, Prentice told the leaders of unions representing nurses, teachers, government employees and health support staff during a meeting at Government House.

The legislation, which threatened to dramatically increase the fines for illegal strikes in the province, sparked a furious public outcry when it was passed in December 2013 under Alison Redford, who resigned as premier a year ago Thursday.

Prentice said the bill, which was never proclaimed and quickly became the subject of a court challenge, should never have passed. But he said his plan to repeal it during the spring legislative sitting wasn’t meant as a “negotiating chip” with public sector unions.

“We all recognize the fiscal circumstances that the government is in and we all recognize that if we serve Albertans, we need to work together, and that includes both people on both sides of the table,” Prentice said after the meeting.

“I felt it was important to reset the table, to reset the relationship, to sit and determine how we’re best to move forward.”

AUPE president Guy Smith called Bill 45 an “odious remnant” from the Redford era.

“It removes an obstacle for future discussions on all these issues,” he said.

A recent Supreme Court of Canada ruling determined the right to strike is constitutionally protected. Heather Smith, president of the United Nurses of Alberta, said that landmark decision made the repeal of Bill 45 “a no- brainer. “It makes sense to get rid of it.” Union leaders said they hoped the meeting would mark a respectful turn in labour relations in the province.

In recent weeks Prentice has taken aim at the public sector by calling wages unsustainable and repeatedly pointing to $ 2.6 billion in public sector wage increases over the next three years as evidence. But he struck a softer tone in a speech to rural politicians this week, saying a slash- and- burn approach to the budget will hurt vulnerable Albertans most. On Thursday he reiterated his promise to honour existing agreements.

“This is not about rolling back contracts. It’s about working together to define solutions as we go forward that reflect the fiscal circumstances we’re in,” Prentice said.

The premier has warned for months the province faces a potential $ 7- billion shortfall in the 2015 budget, caused mainly by plummeting oil prices.

The union leaders asked for the meeting so they could get clarity about the province’s plans for public sector wages and Prentice’s mission to overhaul public sector labour relations. The premier recently announced his government will develop a centralized approach to collective bargaining and is drafting new essential services legislation.

AUPE’s Smith said he was optimistic the government will listen to unions about how to move forward with both plans.

“Now we have heard that before from other premiers and we have been around the block a few times and we’re not easily fooled, but I really believe that we heard a strong commitment from the premier and his ministers ... to make sure things do improve for everybody.”

He said Prentice’s previous focus on public sector wages hurts morale among front line workers.

Finance Minister Robin Campbell will table the 2015 budget March 26. Prentice is widely expected to call a spring election soon after that.