Here’s B.C.’s big political idea of 2013

Profit sharing approach to labour relations comes to the public sector, and confrontation may be on the way out

The traditional style of public sector labour relations in B.C. may be on the way out.

VICTORIA – One of Canada’s great entrepreneurial success stories in recent years is WestJet, the Calgary-based airline that is expanding across the country and taking on European routes.

Clive Beddoe, the founding CEO of Westjet, was famous for helping the cabin crew tidy up the plane before getting off a flight. And the company is also known for its profit-sharing program, with all employees referred to as “owners” who have a stake in the success of the operation.

I thought of this management approach when news emerged that the B.C. government was offering public service unions a new kind of contract, with a five-year term and wage increases tied to improved economic growth.

The surprising thing is that unions are accepting the idea, even though provincial growth must exceed the government’s independent economic forecast council projections before it can take effect in a given year.

The generally non-militant Health Sciences Association was the first to recommend acceptance of a five-year agreement with only 5.5 per cent raises guaranteed. Then they were joined by negotiators for 51,000 health and social services employees, represented by the B.C. Government Employees’ Union and other unions that have long been adversaries of the B.C. Liberals.

John Fryer, negotiator for the BCGEU going back to the epic battles with Social Credit governments and now a professor at University of Victoria, wasn’t impressed when he heard the news.

“These deals reflect what happens when public sector unions back the losing party in a provincial election,” he said. “Union bargaining power takes a trip down the pooper.”

I think there’s more than that going on. Perhaps today’s union leadership is beginning to accept that its wage, benefit and pension arrangements look pretty good compared to the harsh reality of private businesses competing in a global economy.

I asked Premier Christy Clark if this new approach is inspired by private-sector profit sharing. She agreed that is the model.

“I think that’s a great principle for all of us to work from,” Clark said. “Until now, the growth of public sector wages has been completely insulated from changes in the private sector. And this is the first time we’ve ever been able to successfully link those two things. At this point it’s still a small increment wage growth, but it’s a big change, and I hope we can continue to build on it.”

From an employee perspective, it is indeed modest. If real gross domestic product increases one per cent beyond the independent forecast used in the provincial budget, employees get an additional half of one per cent raise for that year.

Contrast this labour relations development with what’s happening on the federal scene. A classic confrontation is brewing between the Harper government and the Public Service Alliance of Canada.

A key dispute is over sick days, which the government estimates are averaging 18 a year. PSAC currently has 15 “bankable” sick days a year, which the union president refers to as a “negotiated right.”

It takes me back to my first union job, where I was warned never to take just one sick day. We negotiated for two at a time, so always take two, the union rep told me. Implicit in this is the mindset that employees should give as little and take as much as possible.

Looking through my files each December for the B.C. story of the year, I consider what is likely to matter five or 10 years from now.

This partnership approach to building the provincial economy is my pick for 2013.

Tom Fletcher is legislature reporter and columnist for Black Press.

Twitter: @tomfletcherbc

 

Just Posted

Cyclists rejoice as the Christmas Lights Parade returns

Family-friendly 10km ride visits big Christmas displays, Dec. 21

Victoria residents advocate for funding for neighborhoods without community centres

North Park Neighbourhood Association hopes to see $75,000 to bolster nearby staff

Single dad reaches out to Greater Victoria community to help kids celebrate Christmas

A young family was overwhelmed with the warm response from strangers

Victoria resident faces discrimination from BC Transit since transitioning to a wheelchair

Daniel Sands says they are often not allowed on buses, even when there is room

Thief targets staff rooms at Victoria businesses

Surveillance shows man entering staff room where several items were reported stolen

VIDEO: More air-passenger rights go into effect this weekend

The first set of passenger rights arrived in mid-July in Canada

POLL: Do you have a real or artificial Christmas tree?

The lights are up, holiday shoppers are bustling through the streets and… Continue reading

Navigating ‘fever phobia’: B.C. doctor gives tips on when a sick kid should get to the ER

Any temperature above 38 C is considered a fever, but not all cases warrant a trip to the hospital

Transportation Safety Board finishes work at B.C. plane crash site, investigation continues

Transport Canada provides information bulletin, family of victim releases statement

Wagon wheels can now be any size! B.C. community scraps 52 obsolete bylaws

They include an old bylaw regulating public morals

Indigenous mother wins $20,000 racial discrimination case against Vancouver police

Vancouver Police Board ordered to pay $20,000 and create Indigenous-sensitivity training

Suspect steals 150 pairs of cosmetic contacts from Nanaimo party supply store

Incident happened at Pattie’s Party Palace on Rutherford Road on Thursday

B.C. driver has car impounded for speeding to church

The driver, who said he was late to church, was clocked travelling 150 km/hr in a 100 km/hr zone

Trudeau sets 2025 deadline to remove B.C. fish farms

Foes heartened by plan to transition aquaculture found in Fisheries minister mandate letter

Most Read