Last week on April 15, Alberta’s Finance Minister Nate Horner stated that the Alberta Union of Provincial Employees (AUPE)’s position on wages is extreme.
“Recently, the union representing government employees, the AUPE, told the government that they are demanding a 26 per cent wage increase over the next three years. The AUPE claims that government employee wages have fallen behind,” said Minister Horner.
“Albertans and, indeed all Canadians, have not seen a wage increase of this size. The Conference Board of Canada found most working Albertans received a salary increase between 2 and 3 per cent in 2023 and 2024,” he added.
But the finance minister is missing some important context—in the past two collective bargaining agreements, public service employees were subjected to wage freezes.
AUPE’s Government Services Bargaining Committee represents public employees who work in administrative support and programs services, law enforcement roles, trades, natural resources and conservation, social services, health and support services and technical services.
In the last collective agreement, which was ratified in December 2021, a two year wage freeze was implemented followed by a 2.75 per cent raise distributed in two instalments—a pay increase of 1.25 per cent was given in January 2023 and another 1.5 per cent in September 2023. As for the collective agreement before that, employees had another two per cent wage and a one per cent wage increase.
Over the past 7 years, Government of Alberta employees received a combined wage increase of 3.8 per cent.
According to AUPE, the monetary proposal is to protect members from rising inflation rates and the rising cost of living. As of March 3, AUPE submitted a three-year deal with wage increases of 13 per cent in one year, followed by 6.5 per cent in subsequent years—this is based on Cost of Living Adjustments (COLA) with data from the Consumer Price Index (CPI).
Despite these compounding factors, the Alberta government doubled down on their initial ask of 7.5 per cent over four years—for the first two years, public service employees would receive a two per cent raise, then 1.75 per cent for the last two years.
Considering that inflation, interest rates and the cost of living are on the rise, AUPE stated that the offer is not enough and is even insulting.
The provincial union said Horner’s recent public remarks were inappropriate.
“We are disappointed to see the government make unwarranted and unhelpful statements. Negotiations should take place in good faith and at the bargaining table, not in the press. That is where we are meant to reach a fair deal for AUPE members and the Albertans who rely on the services they provide,” said AUPE president, Guy Smith in a statement released on April 15.
AUPE is looking to protect its workers from future inflation
On top of incremental wage increases, inflation has severely impacted workers.
Based on Statistics Canada’s calculations, the consumer price index (CPI) or inflation rate in Alberta sat at 3.5 per cent in comparison to Canada which sat at 2.9 per cent. For the last three months, Alberta had the highest CPI in the country.
While the government forecasted a surplus of $5.5 billion for 2023–24, meaning a budget increase of $3.2 billion, the Government of Alberta remained firm on their offer.
“Given the union’s extreme wage positions, working towards a fair and reasonable settlement in a timely manner will be difficult. The Alberta government will not increase taxes or cut programs, services, or workers to give unprecedented salary increases that will result in pay well above market rates,” said Minister Horner.
“Rather, we must balance our ability to invest in programs and services Albertans rely on with fair and competitive compensation for workers,” he added.
Currently, Government of Alberta employee wages are 17.6 per cent behind inflation. If AUPE were to settle for this offer, employee wages would be pushed even further behind inflation by 2027.
Although research behind monetary demands were submitted to the Government of Alberta, there is still a long way to go before the two parties reach an agreement—AUPE will continue to bargain for fair wages.
“The government has been aware of the union’s monetary proposals since we made them on March 6. We will hold to our demands as they are fair and reasonable. The cost of living has increased for everyone, and every worker has the right to fair, livable compensation from their employers,” said Smith.
“AUPE will continue negotiating in good faith in spite of the government’s decision today.”
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