Last week, the Alberta Union of Provincial Employees published an update regarding contract negotiations for workers employed by Travel Alberta.
The Crown corporation was established in 2009 to promote tourism within Alberta. They employ around two dozen workers in the province.
The previous collective agreement between Travel Alberta and these workers expired in March 2024, nearly 2 years ago. but bargaining began until July 2024.
In addition to bargaining teams from the workers and the employer, a representative from the Provincial Bargaining and Compensation Office participated in the first round of negotiations.
The Provincial Bargaining and Compensation Office (previously called the Public Bargaining Coordination Office) was created by the NDP in 2015. They ensure that government funded entities implement government mandates during bargaining.
The NDP used the PBCO during 2017 negotiations, and the UCP willingly kept the office running during the 2020 bargaining season.
Having a PBCO representative at the bargaining table interferes with the workers’ ability to negotiate directly with their employer. It also encourages the employer to participate in bad faith bargaining by putting responsibility on the government for proposals.
Speaking of which, the PBCO representative put forward a wage proposal similar to that seen in other public sector negotiations this year: a 4-year contract with a 2% increase in each of the first two years and 1.75% in each of the last 4 years.
That was a pathetic offer, given that these workers got wage freezes in 2020, 2021, and 2022, followed by two increases—1.25% and 1.5%—in 2023. Plus, in the contract before that, they got two years of wage freezes followed by a measly 1% increase in 2019.
| 2017 | 0.00% |
| 2018 | 0.00% |
| 2019 | 1.00% |
| 2020 | 0.00% |
| 2021 | 0.00% |
| 2022 | 0.00% |
| 2023 | 2.75% |
That’s a combined 3.75% over 7 years, or an average of just 0.54% per year.
Meanwhile, the consumer price index in Alberta grew from 135.1 in April 2016 to 168.6 just this past April, and increase of 33.5, or 24.79%.
So, over the course of the two most recent contracts for these workers, inflation grew by nearly 25%, but their wages grew by only 3.75%. This means that by the end of the last contract, these workers ended up with a cut to their real wages—wages adjusted for inflation—of 21.04%.
And yet, somehow, the PBCO thinks a 6.75% will make up for it in the new contract. That’s not even taking into account how much inflation will increase between now and 2028, when the PBCO wants the new contract to end.
The union responded with a much more reasonable offer: 13% in the first year of a 3-year contract, and 6.5% in each of the last two years. That’s a total of 26%.
That 26% will make up for the losses in the last two contracts, but won’t be enough for the workers to keep up with inflation over the next three years. But it’s way better than what the employer—or rather, the PBCO—offered.
Last week’s update was to announce that the workers have ratified a new collective agreement.
This newly ratified collective agreement brings with it annual wage increases, but they are not what either party asked for.
| 1 April 2024 | 3.00% |
| 1 April 2025 | 3.00% |
| 1 April 2026 | 3.00% |
| 1 April 2027 | 3.00% |
That is a combined increase of 12% over 4 years, 12.55% if you account for compounding increases. This works out to 4.5 percentage points more than Travel Alberta (or rather, the PBCP office) originally offered but 14 points less than what the workers asked for.
Seems to me that the workers made the larger concession—not much of a middle-of-the-road agreement. Plus, 12% (12.55%) falls short of covering their 21.04% real wage loss, so these workers lose out again, especially considering that a new 4-year contract also means 4 more years of inflation, too, which will increase that real wage loss even more.
The first two pay increases will be retroactive, including for former workers who were working during those periods. This is the first time Travel Alberta has agreed to retroactive pay for former workers.
Workers who have been with Travel Alberta for at least 20 years continuously will receive an additional 2% increase in their base salary.
The new collective agreement also has improvements for some health benefits. For example, there is a new $500 vision benefit, which is available every 2 years. Also, workers will have 100% of the costs for eye exams covered every 2 years.
Maternity leave has been increased from 52 weeks to 78 weeks.
Discipline on a worker’s employment will be removed after 18 months. In the previous collective agreement, it was 24 months.
Holidays named by federal or provincial governments will now be recognized. This would include the National Day for Truth and Reconciliation.
Personal leave has increased from 3 days to 4 days per year.
