Stable Economic Growth Pays Dividends to B.C. Public-Sector Employees

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 (EFC) 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 EFC forecasts. The wage increase is calculated based on 50% of the positive variance between the EFC forecast and the data released by Statistics Canada.
B.C.’s real GDP growth of 3.2% for 2014 is the second highest among all provinces.

Quote:

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.”

QUICK FACTS:

• 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 the wage increases in each of the collective agreements negotiated 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.

What it means for the Community Social Services Sector (examples based on Step 4 of the pay grid):

• Community Living Services - Residence Worker = $167/year — $528 over the term of the agreement.
• Community Living Services - Community Support Worker = $167/year — $528 over the term of the agreement.
• General Services - Residence Worker = $167/year — $528 over the term of the agreement.
• General Services - Adult, Youth and/or Child Worker = $178/year — $565 over the term of the agreement.
  
  

The Economic Stability Dividend (EDS) will be paid on February 1, 2016.

Learn More:

Public Sector Employers’ Council Secretariat (PSEC):http://www.fin.gov.bc.ca/psec/bargaining/index.htm

For more or information or if you have any questions please feel free to contact your HRLR consultant.