Pallister mum on austerity plans; gov’t will ask for ‘pause’ on public sector increases

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This article was published 22/11/2016 (3234 days ago), so information in it may no longer be current.

Brian Pallister says he won’t detail plans for controlling public sector wage costs until early in the new year.

Pallister said Tuesday he wants to discuss plans for restraining costs with organized labour before making any public pronouncements.

The premier has called recent public sector wage settlements unsustainable for a cash-strapped government that is deeply in debt.

There has been speculation that the Progressive Conservative government will impose a wage freeze throughout the public sector after it let it be known during contract negotiations between the U of M and its professors that it wanted to see a one-year “pause” in salary increases.

The rumours grew when the government announced in its Monday throne speech that it would introduce legislation to ensure public-sector costs — 75 per cent of which are wages — do not exceed Manitobans’ ability to pay.

The government expects to post an $890 million deficit on core operations in the current fiscal year. That estimate rises to $911 million when Crown corporations and other government reporting entities are included.

Union leaders have accused the premier of wanting to subvert the collective bargaining process.

The premier said, however, that the government can’t continue to boost wages in an “unsustainable manner.” He said salary increases must be curbed not only in the civil service, but within Crown corporations, post-secondary education institutions and hospitals.

The closest Pallister came Tuesday to tipping his hand was when he suggested the government would continue to ask for “a pause” on wage increases in the future.

Pressed for details, the premier demurred.

“I’m not going to get specific at this point. We’ll lay out those things after we’ve had a good opportunity to continue our dialogue with our union leaders. They will be consulting, I expect, with their members,” he said.

The premier said he hoped government and labour could work out a strategy for controlling public-sector costs that they could jointly announce.

“I believe this is an all-hands-on-deck situation,” he said.

larry.kusch@freepress.mb.ca