Published On: Tuesday, 06 December 2016
BC's Economic Growth Rewards Public-sector Employees
BC - Stronger than forecast economic growth of 3.3% in 2015 will give unionized employees throughout BC’s public sector a modest salary increase from the Economic Stability Dividend.
Statistics Canada data shows the BC economy grew by 3.3% in 2015, exceeding the Budget 2015 forecast of 2.6% provided by the Economic Forecast Council (EFC). The wage increase is calculated based on 50% of the positive difference between the EFC forecast for real GDP growth and the data released by Statistics Canada.
That means approximately 310,000 unionized provincial public-sector employees covered by agreements settled under government’s Economic Stability Mandate will receive an additional pay increase of 0.35% starting February 2017.
This is the second Economic Stability Dividend activated by above-forecast growth. Last fiscal year, public-sector employees received a 0.45% increase. Both dividends are ongoing and cumulative in employees’ compensation. Combined, the two dividends amount to an additional 0.8% over the remaining terms of agreements, in addition to the 5.5% general wage increases negotiated as part of the mandate.
The provincial government committed to introducing a shared benefit with public-sector employees as part of the 2014 Economic Stability Mandate. By settling longer-term agreements, the Province benefits from greater labour stability that contributes to economic growth.
Since 2014, the Province has reached tentative or ratified agreements with public-sector unions representing about 99.9% of all unionized employees.