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

Oak Bay High student selected for Canada Youth Olympic Team

Barbarians rugby player Lachlan Kratz heads to Las Vegas for Qualifiers

Man charged in suspected Greater Victoria bus assault

The Victoria Police Department has arrested a man for sexual assault aboard… Continue reading

Library’s French collection gets $15,000 boost

Provincial grant adds extra French-language materials to Greater Victoria Public Library collection

Cruise Industry Job Fair on Saturday

Nearly 900 jobs created by the industry

Celebrating the heroic dogs of Saanich past

Cedar Hill exhibit features great dogs of history

President praises nearly 1,800 volunteers at B.C. Games

Ashley Wadhwani sits down with the Kamloops 2018 B.C. Winter Games President Niki Remesz

The way government learn someone has died is getting a digital overhaul

Governments in Canada turned to private consultants 2 years ago to offer blueprint

Bobsleigh team misses Olympic medal finish

Canadian team finishes four-man event 0.84 seconds behind first place, 0.31 seconds from podium

B.C. Games: Athletes talk Team Canada at PyeongChang 2018

From Andi Naudie to Evan McEachran there’s an Olympian for every athlete to look up to

Minor injuries after car veers into Courtenay dance studio

A driver and passenger were taken to hospital after their vehicle crashed… Continue reading

Snowboarders sliding into fresh territory at B.C. Games

Athletes hit the slopes for first appearance as an event at the B.C. Winter Games in Kamloops

Cougars hold upper hand on Westshore in VIJHL South semifinal

Victoria leads series 2-0, games 3 and 4 go tonight and tomorrow

Looking back at the 1979 B.C. Games: Good memories, even better jackets

39 years later, Kamloops is hosting the Winter Games again, with some volunteers returning

OLYMPICS 101: Oldest and youngest Canadians to reach the podium

This year, Canada sent its most athletes in Winter Games history, here’s a look at record breakers

Most Read