[Tb-bargaining] TB Bargaining: Proposing a wage increase: we*re worth it!

[Patrick Bragg]

The factors that go into developing a pay demand

Our Union considers a number of factors when putting together a pay
demand.

   1. We examine what other workers are being paid who are doing
comparable work and we make direct comparisons with PSAC members working
for other federal employers.

We use union research, sometimes supplemented by compensation studies,
to see what workers are being paid for comparable jobs both in the
public and private sectors. With this data, we can propose what are
known as *market adjustment* increases. These increases are designed
to keep the federal government competitive as an employer. In an economy
with low rates of unemployment and an aging workforce, that*s
important. Our negotiating teams for each Treasury Board unit are
determining what *market adjustment* increases are needed for their
members. Look for more information on proposed adjustments in upcoming
bulletins from the negotiating teams.

   1. We calculate what we need to give our members some real economic
improvement that reflects the continued strength of the Canadian economy
and protects against inflation.
   2. We consider what kinds of increases other workers are
negotiating.

Our demand for 2007-2008-2009

For this round of negotiations, we*re proposing:

    * an economic increase of 4.5%,
    * in each year of a three-year collective agreement,
    * retroactive to the first day of the new three-year agreement (the
date in 2007 will vary by bargaining unit),
    * that applies to all members covered by the agreement.

This proposal has already been tabled with Treasury Board for the PA
and FB units and will be soon for the SV unit.

The reasons for 4.5%

Wage settlements are on the rise

Settlement patterns for major employers show that wage increases are on
the rise. Private sector wage increases in 2008 are already at an
average of 4.1%, that*s a full 1% above 2007. Settlements in the
federal jurisdiction are up 0.5% since 2007. Compensation consultants
are projecting wage increase growth in 2008 and increases averaging at
least 3.6%. Our 4.5% starting point is a reflection of the upward trend
of wage settlements.

Future recruitment is a challenge

Canada*s aging workforce is reflected in the federal public sector.
According to the President of the Canada Public Service Agency, *more
than half of all public servants are now over 45.* Retirements in the
federal public sector are rising and are expected to do so for at least
another five years. Treasury Board pay levels are going to have to be
highly competitive to meet staffing needs and provide the necessary
level of quality public services Canadians need and want.

Unemployment rates are expected to remain low

While any rate of unemployment is unacceptable, rates have been
dropping steadily over the past five years to a rate of 6.0% in 2007.
Economists are predicting that while rates may rise somewhat in 2008 and
2009, they project that the increases will be small. Low unemployment
rates combined with high rates of retirement will mean fierce
competition for available workers.

Inflation rates could be anyone*s guess

While economists predict that inflation will continue to be contained,
there are some concerns that inflation may start to rise as a result of
increases in fuel and food prices. In fact, the Consumer Price Index
does not include energy and food prices in its calculations. So,
official inflation statistics don*t necessarily reflect the real
picture of rising costs our members face.

Putting our demands on the table

Negotiations for three of our Treasury Board bargaining units (FB, PA,
SV) have reached the stage where it was time to put our demands for wage
increases on the table.

Specific wage proposals for our TC and EB members are being developed
and will be presented to Treasury Board in the months ahead. Some of
them are being developed based on compensation studies that have either
just been completed or are still in the process of being conducted.