British Columbia’s public-sector workers will see a modest salary increase reflecting stronger-than-expected economic growth in 2014, Finance Minister Michael de Jong announced today.
Statistics Canada recently reported that the B.C. economy grew by 3.2% in 2014, exceeding the forecast provided by the independent Economic Forecast Council of 2.3%. That translates into an additional increase of 0.45% for unionized provincial public-sector employees who have reached agreements under the government’s Economic Stability Mandate for collective bargaining.
Most employees will see the increase applied to their paycheques in February 2016. This will be the first time B.C. public-sector employees have directly benefited from economic growth that exceeded independent forecasts.
As part of the 2014 Economic Stability Mandate, government committed to introducing a shared benefit that activates an ongoing wage increase when GDP growth exceeds Economic Forecast Council forecasts. The wage increase is calculated based on 50% of the positive difference between the EFC forecast and the data released by Statistics Canada.
Since 2014, the Province has reached tentative and ratified agreements with public-sector unions representing over 250,000 employees, or about 80% of all unionized employees.
B.C.’s real GDP growth of 3.2% for 2014 is the second highest among all provinces.
Finance Minister Michael de Jong ─
“The premise is simple – public-sector employees did their part to support a strong economic future by providing labour stability and certainty for British Columbia, and they deserve to share in the benefits when economic growth exceeds expectations. While global economic uncertainty continues, the B.C. economy has proven its resilience and outperformed expectations.”
- This is the first of four potential Economic Stability Dividends designed to share the benefit of economic growth with the public-sector workers who help make it possible.
- The increase is cumulative, and is in addition to an increase of 5.5% over five years negotiated in each agreement under the 2014 Economic Stability Mandate.
- The dividend is paid if the Province’s real GDP growth exceeds forecasts over the term of the agreement.
Public Sector Employers’ Council Secretariat (PSEC): http://www.fin.gov.bc.ca/psec/bargaining/index.htm
PSEC supports government in setting and co-ordinating strategic directions in human resource management and labour relations for the broad public sector.
A copy of the Economic Stability Dividend powerpoint presentation is available: https://news.gov.bc.ca/files/Economic_Stability_Dividend.pdf
A backgrounder follows.