Raise for pub­lic-sec­tor work­ers af­ter B.C. econ­omy hits mark

Times Colonist - - Business -

Union­ized B.C. gov­ern­ment em­ploy­ees are about to the reap the ben­e­fits of a ro­bust econ­omy.

Statis­tics Canada said the B.C. econ­omy grew 3.8 per cent in 2017, ex­ceed­ing the pro­vin­cial bud­get fore­cast of 2.3 per cent pro­vided by the Eco­nomic Fore­cast Coun­cil. The Min­istry of Fi­nance said that has trig­gered an eco­nomic growth-shar­ing clause, of­fi­cially known as the Eco­nomic Sta­bil­ity Div­i­dend (ESD), in gov­ern­ment con­tracts which will re­sult in pub­lic sec­tor work­ers re­ceiv­ing a 0.75 per cent wage in­crease be­gin­ning in Fe­bru­ary.

Eco­nomic Sta­bil­ity Div­i­dend was ne­go­ti­ated in 2014. To ac­ti­vate the clause, real GDP growth for B.C. must ex­ceed the fore­cast pro­vided by the in­de­pen­dent Eco­nomic Fore­cast Coun­cil for the cal­en­dar year.

“The wage in­crease is cal­cu­lated based on 50 per cent of the pos­i­tive dif­fer­ence be­tween the EFC fore­cast for real GDP growth and ac­tual growth as re­ported by Statis­tics Canada,” the min­istry said.

The ESD clause has been trig­gered ev­ery year since the deal was reached, re­sult­ing in a pay raise of 1.95 per cent that is on top of the base­line 5.5 per cent wage in­crease that was in­cluded in the man­date. Wages are not rolled back if eco­nomic growth falls short of the bud­get fore­cast.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.