Arbitrator rejects public sector wage cuts
EDMONTON The province’s request for public sector wage rollbacks up to five per cent was denied by an arbitrator in the province’s negotiation with Alberta’s largest union on Friday.
An independent arbitrator awarded one per cent wage increases to some public employees and a third year of frozen wages to others.
The decision by arbitrator Phyllis Smith marks a no-win resolution in one facet of what has been a fraught relationship between the Alberta Union of Provincial Employees (AUPE) and the UCP government since it took power.
“We are somewhat disappointed,” said AUPE president Guy Smith on Friday.
The union had been seeking one-year wage hikes between 6.5 per cent and 7.85 per cent for 65,000 of the union’s 95,000 members in the negotiations.
Public service workers and health care workers in the general support services area of Alberta Health Services (AHS) will receive the percentage point raise, while AUPE members in AHS nursing care were handed a third year of frozen wages.
The decision also denied the union’s request for the wages of correctional peace officers to be brought in line with competitive rates in other provinces.
The government did not hail the decision as a victory, instead hinting in a Friday statement that public service job cuts could be on the table to pay for the estimated $35 million in increased wages awarded.
The battle between government and labour began in June when government passed Bill 9, the Public Sector Wage Arbitration Deferral Act.
It was supposed to pause any binding arbitration hearings with public sector unions until Oct. 31 while the newly elected government had a chance to dive deeply into Alberta’s books.
About 70,000 workers had to wait to find out if an arbitrator would award them pay raises.
Smith acknowledged while Friday’s decision was less than ideal, it could have been worse for front line workers.
“The decision at least showed that the government’s efforts to rollback wages weren’t granted,” said Smith.
Finance Minister Travis Toews said Friday the decision challenges “the urgent need to fix Alberta’s overspending problem while ensuring the long-term sustainability of high-quality public services Albertans rely on.
“As a result of these decisions, government will need to consider additional steps to balance our budget and get our fiscal house in order,” said Toews, adding that wage restraint will be “paramount” in upcoming negotiations with the AUPE and other unions in 2020.
“It’s downright insulting that Finance Minister Toews is musing about layoffs for Alberta’s hard working and dedicated civil servants,” said NDP labour critic Christina Gray in a Friday news release.
Frontline workers “have been doing more with less” as population and demand on services increase, Smith said, and that “there is nowhere to cut on the front line of public service, anywhere.”
The union is preparing for “extremely challenging” next rounds of negotiations in 2020, and the possibility of strike is also on the table “if necessary,” he said.
Other worker groups destined for wage arbitration are nurses, teachers, health-care professionals, school support workers, faculty associations and post-secondary institution employees.