Wall Announces Government Wage Freeze

Written by Colin Powers on Friday, 06 February 2015

wall oct18

Premier Brad Wall has announced a wage freeze for himself and all senior government officials, including cabinet ministers, as the government faces falling resource revenues, estimated to be up to $800 million.

The freeze also affects senior managers and out-of-scope executive government and Crown Corporation employees, and out-of-scope health region employees, and Wall is requesting the same freeze be applied for MLAs.

This comes after Alberta Premier Jim Prentice announced a similar wage freeze for his cabinet ministers last week, and Wall says these wage freezes do set an example as both governments control operational spending.

“It’s manageable with some tough decisions, but not insignificant,” Wall said. “Our revenue situation, though serious, is also not as serious as Alberta’s, and I think this is a commensurate action and exemplary – I think it does set a tone and set an example – and we want to expand it beyond the MLAs and ministers to executive government.”

The government is asking all school divisions and post-secondary institutions to apply the same policy, and Wall has asked the government members on the Board of the Internal Economy, which sets salaries for MLAs, to implement the wage freeze as well.

MLAs and ministers normally receive an annual cost of living increase tied to the Consumer Price Index, which was scheduled to be 2.4% in 2015.

“We don’t make this decision lightly,” Wall added. “We have very hard-working leaders in the public sector, in the Crowns and executive government who will now have their wages frozen. That’s not a particularly positive message to have to send to them… we just think that we need to set the tone for the budgeting coming up, and we made this decision yesterday at our caucus budget discussions.”

The wage freeze is expected to save $15 million across government.

via Local News http://ift.tt/1ukVxua

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