Pcs Target Civil Service Wages, Pensions

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PCs target civil service wages, pensions

By:Dan Lett
Posted:02/10/2017 6:00 AM | Last Modified:02/10/2017 8:33 AM|Updates |Comments: 95

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The Pallister government has served notice to its public-sector unions it intends to pursuewide-ranging legislation to control wages, pension benefits, future wage settlements and possibly force civil servants to take unpaid days off, the Free Press has learned.

On the eve of an important meeting to discuss potential wage concessions, Gerry Irving, the secretary of the province’s public-sector compensation committee, sent a letterto the Manitoba Federation of Labouroutlining a shopping list of goals it hopes to achieve through legislation in the upcoming session of the Manitoba legislature.

WAYNE GLOWACKI / WINNIPEG FREE PRESS FILES

Manitoba Federation of Labour president Kevin Rebeck, centre, thinks unions were misled by the province into believing it would not look at legislation for lowering wage costs until all other avenues had been explored.

The prospect of legislation is not new. The issue was first raised in the government’s last throne speech, and Premier Brian Pallister has discussed it publicly on several occasions.

Labour leaders are scheduledto meet today with Irving and other senior provincial officialsfor the second in what isexpected to be a series of meetings to discuss ways to create savings in wages and benefits to help curbthe province’s $1-billion deficit. The first meeting was led by Finance Minister Cameron Friesen but did not discuss specifics about what the governmentwanted to achieve in terms of wage concessions.

The day before the second meeting, unions got a raft of specifics. In a letter dated Wednesday, but not delivered to unions until Thursday Irving notes the province’s "serious fiscal situation" requires that future meetings withunion leaders focus on"early policy and statutory decision-making — particularly concerning public-sector costs/sustainability legislation."

Irving goes on to list the areas that could be included in wage-control legislation. They include:

● Whether the legislation should cover the entire public sector or only select parts;

● Which components of compensation should be included;

● Potential reopening of collective agreements;

● Extension of some collective agreements, likely those with wage freezes in place;

● Mandated wage settlements on a go-forward basis;

● Merit increases;

● Pensions;

● Reduced work weeks;

● Possible offsets such as efficiencies.

"Our government inherited serious financial challenges and unsustainable expenditure growth. As we address these issues and consider options including legislation, we have reached out to union leadership to secure views and constructive feedback," a government spokeswomansaid.

"This is occurring through a respectful and ongoing process being co-ordinated through public service officials and union leaders. Government is not going to bypass this direct dialogue through premature public comments about potential outcomes."

Kevin Rebeck, president of the Manitoba Federation of Labour, said unions were led to believe legislation was only one option for lowering wage costs and that the province would look at all other non-legislative avenuesbefore taking the risky and controversial approach of imposing wage and benefit concessions on the civil service.

With Irving’s letter this week, Rebeck said it appears the province is only looking at legislation. "We’ve been under a false impression for more than a month now," Rebeck said. "We were asked to come up with ideas on how to save money. Now we’re being told that we only have one solution, and it’s legislation."

It is difficult for provincial governments to use legislation to reopen or unilaterally change the terms of collective agreements. Previous attempts to do this have been met with legal challenges that were successful in turning back the legislation. Legal experts agree the only way a government could impose wage and benefit concessions and survive a legal challenge is to establish that all avenues of negotiation were exhausted.

The province is trying to characterize its meetings with labour as consistent with the requirement to consult and negotiate meaningfully with its unions. In the closing paragraph of his letter to union leaders, Irving said he looked forward to today’s meeting "as we continue our consultative process and collaborative work."

Unions won't embrace that view, Rebeck said. "This is not consultation," Rebeck said. "Not even close."

There are options outlined in Irving’s letter that may not need proof of consultation in order to work.

Irving’s letter confirmed Pallister is strongly considering a move to bring "Filmon Fridays" back into play.

In 1993, facinga stagnant economy and cuts in federal transfer payments, former premier Gary Filmon introduced legislation that mandated 10 unpaid days off for provincial civil servantsfor a period of one year. After that, the furloughs were negotiated into contracts.

Pallister is aware of the legacy of Filmon Fridays, as he served in Filmon’s government in the 1990s when they were introduced. As such, he is aware Filmon was able to introduce his furlough program without any significant legal challenge from unions.

Rebeck said he continues to be concerned the PC government is forging ahead with discussions about legislation without identifying a timeline or a target amount it hopes to save from wage concessions.

Pallister has said he hoped to balance the budget within eight years, a timeline that’s at odds with his government’s sudden urgency to introduce legislation.