Public Sector Employers' Council Secretariat
Public Sector Bargaining
2014 Economic Stability Mandate
- The Economic Stability Mandate applies to all public sector employers with unionized employees whose collective agreements expire on or after December 31, 2013.
- The mandate provides employers the ability to negotiate longer-term agreements within a fixed fiscal envelope and offers public sector employees an opportunity to participate in the Province’s economic growth through the Economic Stability Dividend – if actual real GDP growth is one percentage point above forecast real GDP growth, then a 0.5 per cent wage increase would result, beyond whatever wage increase had been negotiated in the contract.
- Settlements are expected to be unique between sectors and reflect government’s priorities of having labour stability and affordable service delivery throughout B.C.
Goals of the Economic Stability Mandate
- To create certainty and stability throughout the public sector through longer-term voluntarily negotiated agreements.
- To protect the Province’s fiscal plan and public services by negotiating collective agreements that are affordable to the taxpayers of B.C.
- To provide public sector employees with the opportunity to share in the economic growth of the Province, conditional upon economic performance and ability to pay.
2012 Cooperative Gains Mandate
- The new 2012 Cooperative Gains Mandate applies to all public sector employers whose collective agreements expire on or after December 31, 2011.
- The key feature of the Cooperative Gains Mandate is that it provides public sector employers with the ability to negotiate modest wage increases made possible by productivity increases within existing budgets.
- Settlements under the Cooperative Gains Mandate are expected to be unique and differentiated between sectors and between employers in some sectors as each will depend on a number of factors, particularly the ability to generate savings to fund modest compensation improvements.
Principles of Cooperative Gains Mandate
- The Province will not provide additional funding for increases to compensation negotiated in collective bargaining.
- Employers are directed to work with responsible ministries and employer bargaining agents to develop Savings Plans to free up funding from within existing budgets to provide modest compensation increases.
- Employers must not reduce service levels to the public in order to fund compensation increases.
- Employers must not transfer the costs of existing services to the public to pay for compensation increases.
- Savings Plans can include savings resulting from operational cost reductions, increased efficiency, service redesign, business gains, and other initiatives. Savings Plans can therefore propose savings that are much broader than under the previous 'Net Zero' Mandate.
- Identified savings are to be used to fund compensation increases that will facilitate negotiated settlements with unions through collective bargaining.
- Identified savings must be real, measurable, and incremental to savings identified by Employers to meet Provincial Budget and deficit reduction targets for 2012/13 and beyond.
- Employers and unions may also negotiate other savings at the bargaining table to supplement Savings Plans.
- Employers are not required to negotiate a target wage increase; however, increases are expected to be modest and employers must have an approved Bargaining Plan from government.
- Employers must seek agreements that are at least two years in length. There is no maximum term for collective agreements under the Cooperative Gains Mandate.
2010 Net Zero Mandate
- The 2010 Net Zero Mandate applies to all public sector employers whose collective agreements expired on or after December 31, 2009.
- Collective agreements that expired in 2010 or 2011 and that have not yet been renegotiated must meet the Net Zero Mandate for two years. While there are outstanding agreements still being negotiated with some unions under the 2010 mandate, virtually all of B.C.’s public sector collective agreements covered by the 2010 mandate are now settled for two years of net zero.
- Under the 2010 Mandate, negotiators are seeking to move money from one part of the collective agreement to another — any improvements in the collective agreements have to be offset by savings in other compensation areas.
Elements of Mandate 2010
The goal of Mandate 2010 is to achieve voluntarily negotiated collective agreements in the B.C. public sector that assist the Province in delivering public services in a cost-effective and financially prudent manner.
- A two-year term.
- No net increases in total compensation costs.
- Compensation trade-offs - savings found through (mutually-agreed) changes in collective agreements may be used to fund compensation increase.
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