Govt workers push back against AB finance minister

Last week, Alberta’s finance minister, Nate Horner, published a media release on the government’s website regarding collective bargaining with some public sector workers.

In it, he lambasted a recent wage proposal from the collective bargaining team for Government of Alberta workers, calling it “extreme” and “unprecedented”.

Late last month, these workers, which are represented by the Alberta Union of Provincial Employees reported that they had proposed a 26% wage increase over 3 years: 13% in the first year, followed by 6.5% in the next 2 years.

In return, the government’s bargaining team had proposed a combined wage increase of 7.5% over 4 years—2% in each of the first 2 years and 1.75% in each of the final 2 years—not even a third of what the workers are demanding.

And while 26% does seem a lot, keep in mind that over the last 7 years, these workers have received a combined wage increase of 3.75%: four years of wage freezes, an increase of 1%, an increase of 1.25%, and an increase of 1.5%.

Alberta’s consumer price index in April 2016 sat at 135.1, and 8 years later (as of last month), it had reached 167.3. That’s a 32.2 point increase, or 23.83%.

When we adjust for 23.83 inflation, we see that the combined 3.75% wage increase since 2016 ends up being a reduction in real wages—wages adjusted for inflation—of roughly 20%.

This means that the 26% increase these workers are asking for are making up for that 20% shortfall and then leaving them with just 6% over 3 years, or about 2% per year (on a 3-year contract).

Considering that inflation between March 2023 and March 2024 in Alberta was 3.15%, an average annual increase of 2% over the next 2 years seems more than fair.

Horner called the government’s proposal of 1.88% per year “reasonable”, as well as “fair and competitive”.

In his statement, Horner reported that “the Conference Board of Canada found most working Albertans received a salary increase between 2% and 3% in 2023 and 2024.” Yet, the government is asking for less than 2%.

He also claimed that “looking across Canada, we do not see any publicly funded employees receiving the type of settlement the AUPE is demanding.”

I wonder, however, how many other governments gave their workers 4 years of wage freezes and then 3 wage increases below the rate of infltion?

Needless to say, the workers aren’t too happy.

The AUPE released its own statement, with their president, Guy Smith, saying the union was “disappointed” with Horner’s “inappropriate” comments, referring to them as “unwarranted and unhelpful”.

Smith went on to criticize Horner for trying to bargain in the media, rather than at the bargaining table with the workers.

He wasn’t singling out these workers, specifically, in their fight to catch up from years of zero and low increases. “The cost of living has increased for everyone,” Smith said, “and every worker has the right to fair, livable compensation from their employers.”