CTF praises Kenney government on fiscal restraint, urges public sector unions 'to take a pay cut’

Alberta Finance Minister Travis Toews urges fiscal restraint on public sector compensation following a breakdown in negotiations last week with healthcare unions.

"Last week, Alberta Health Services (AHS) proposed informal mediation to the United Nurses of Alberta (UNA) in an attempt to move towards a settlement agreement. Unfortunately, union leadership declined the offer," said Toews in a statement, who emphasized the importance of reaching a collective agreement promptly.

"We respect the rights of all Albertans to express their opinions on matters important to them."

Many previous settlements were reached in mediation, he said. "In the past 21 years, seven of the eight collective agreements between AHS and UNA have been reached with the use of a third-party mediator." Toews remains hopeful that informal mediation will encourage both parties to work collaboratively towards a deal this time too.

"Our government is truly appreciative of the hard work and dedication that healthcare professionals – especially nurses – have shown over the last 18 months," adding: "We know the appreciation and respect for health care workers runs deep and wide throughout the province."

"As bargaining continues, my hope is that unions and their employers can quickly come to a settlement that works for everyone and is aligned with the fiscal realities we are facing."

On July 15, the Alberta Union of Provincial Employees (AUPE) asked AHS for a 5 percent increase in salaries over the next two years. That represents $105 million to the Alberta taxpayer, according to the finance ministry. This followed a demand for a 4 percent raise over two years by the UNA.

"Albertans pay more than most Canadians for public services – including health care," said Toews. "$23 billion was committed to Health expenses in Budget 2021 – the largest single-year investment in health care in Alberta’s history. And an additional $1.5 billion was spent on Health in response to COVID-19."

In 2019, the province paid $5,470 per person in public sector compensation, compared to $4,834 per person in British Columbia and $4,702 in Ontario.

The Alberta government is asking its employees to take a three or four-percent wage cut. The last broad-based Alberta government pay cut was a five percent reduction in 1994, according to research from Secondstreet.org.

"If you received a three or four percent cut in Alberta’s private sector, you were one of the fortunate ones during the downturn, but the last broad government pay cut was decades ago," said Canadian Taxpayer Federation (CTF) Federal Director Franco Terrazzano. "Albertans appreciate the hard work during COVID-19, but struggling families and businesses can’t afford higher taxes, so government employees need to take a pay cut."

"Our government is committed to standing up for the healthcare system and representing the best interests of all Albertans," said Toews: "That’s why we have been urging both AHS and UNA to work towards a new collective agreement that will bring long-term labour stability to the health care system."

"The reality is that Alberta spends more money per person on health care than other large provinces, and this can’t continue."

Terrazzano added: "Alberta’s total spending on public sector compensation would be approximately $3 billion less every year if it matched the average spending of comparable provinces,"  The provincial debt is expected to pass $100 billion this year. Labour costs make up more than half of the government’s operating budget.

"We are facing a $93 billion debt," said Toews, "[so] we must continue to find efficiencies across the public sector – it’s an essential piece to restoring fiscal health and ensuring sustainable public services."