Soaring municipal pay criticized in provincial review

Divided cities need unified defence against unions, report advises government

Canadian Taxpayers Federation B.C. director Jordan Bateman.

A review of municipal pay levels ordered by the province recommends the government act to help rein in rapidly escalating wages among unionized civic workers and some administrators.

The report by consultants Ernst & Young, released by the Canadian Taxpayers Federation, was conducted as part of the province’s core review launched last year.

It found unionized municipal workers received pay hikes totaling 38 per cent from 2001 to 2012 – twice as much as the 19 per cent in raises for unionized provincial government staff. Inflation over the same period was 23 per cent.

The report also notes several larger B.C. cities pay their chief administrators close to the $230,000 in pay and bonuses earned in 2011 by the average provincial government deputy minister, while that’s exceeded by city managers in Vancouver, North Vancouver, Abbotsford and Maple Ridge, as well as Metro Vancouver’s chief administrator.

The review didn’t consider whether city managers deserve the same pay as provincial deputy ministers, but said that should be investigated.

Provincial compensation restraint policies that began in 2008 with that year’s recession should be reviewed and updated to potentially serve as a broader philosophy extending across the public sector to municipalities, the review recommended.

“The government should do what is necessary to bring municipal government compensation into alignment over time, including financial levers if necessary.”

Canadian Taxpayers Federation B.C. director Jordan Bateman said he hopes city councils reform themselves and the province doesn’t need to take “extreme measures” like tying provincial grants to wage restraint.

“I would see that as a last resort,” he said.

The report suggested the province may find it harder to retain its own managers if cities pay more and Bateman said that makes the issue a legitimate concern for government.

“If municipal wages are going up fast and they’re grossly overpaying staff, it gets hard for the province to keep their employees in place,” he said.

Unlike limits on management pay imposed across the provincial government, local government compensation isn’t coordinated or regulated, the report said, and there’s no limit on what cities can decide to pay.

Collective bargaining by cities is generally “highly fragmented and inefficient,” the report observed, allowing unions to exploit their divisions.

“Unions can focus efforts on municipalities where outcomes are more likely to be favourable and use the resulting agreements to ratchet up increases in other municipalities.”

Metro Vancouver’s largest cities pulled out of the regional district’s joint bargaining arrangement in 2012 in favour of more local flexibility in negotiations.

“Without a coordinated response to organized labour, there is a real risk that unions can divide and conquer,” the report said.

The leak of the report to the CTF comes as municipal leaders prepare to gather in Whistler next week for the Union of B.C. Municipalities convention, where the province usually faces a barrage of funding requests.

Finance Minister Mike de Jong said in a statement the province has reached out to the cities via UBCM to explore practical tools and models that can help the entire public service deliver similar services at similar costs.

“We know many local governments are looking carefully at revenues and ideas for new revenue streams,” de Jong said. “They need to be looking equally closely at their expenditures.”

Just Posted

4-H Club cleans up Quesnel River Walk

It’s part of their initiative to protect the environment and teach its members about nature

UPDATE, 4:50 P.M.: Gas leak near Dragon Lake Hill closes one lane of southbound traffic

4:50 p.m.: one Highway 97 southbound lane will likely need to be closed overnight, says FortisBC

CRD director John Massier hopes to support Area C economy in next four years

Area C director has been in the role for 10 years, and will take on four more by acclamation

Quesnel Kangaroos return to West Fraser Centre

CIHL team split a pair of games; thrashing the Ice Demons and falling to the River Kings

Tolko workers on strike in Williams Lake

Negotiations set to continue in Kelowna

Legal pot price must be ‘competitive’ with black market: Blair

Bill Blair shared final words on journey to legalization ahead of official day Wednesday

Mayor of Kamloops says ‘history has been made’ with vote on B.C.’s lone pot shop

The store to be run by the province in B.C.’s Interior is opening Wednesday as pot sales become legal across Canada

New bus route to ‘replace’ Greyhound along Trans-Canada Highway

Rider Express Transportation says they will soon begin a bus service from Winnipeg to Vancouver

U.S. pot firm urges Trump to deny Canadian producers ‘competitive advantage’

The challenge for U.S. firms lies in the fact that while recreational cannabis is legal in nine states and medicinal pot in 22 others, it remains illegal under federal law

Government says imprisoned Canadian terror suspects must face consequences

Public Safety Minister Ralph Goodale showed little sympathy Tuesday for such individuals who now want to return to Canada

How rules for inmate segregation in Canada will change under Bill C-83

Federal government proposing changes to rules around inmates in federal correctional institutions

Canada Post union issues strike notice; rotating strikes could begin Monday

Union says rotating strikes will begin if agreements aren’t reached with bargaining units

Carole James avoids questions on B.C.’s payroll tax (with video)

Green MLA Adam Olsen cites huge tax increase for local business

2 charged for feeding B.C. bear Tim Horton’s timbits

Court documents show that Randy Scott and Megan Hiltz have both been charged with feeding or attempting to feed dangerous wildlife.

Most Read