Multiple unions in B.C. are upping the pressure to make public-sector wages match the rising rate of inflation.
On August 15, the British Columbia General Employees’ Union (BCGEU) began their job action by picketing at liquor wholesale and distribution centres across the province. Two days later, the Government Licensed Professionals of the Professional Employees Association (PEA) served a 72 hour strike notice to their employer. Also, workers for the District of Saanich, who are members of the B.C. branch of the Canadian Union of Public Employees (CUPE BC), voted 94 per cent in favour of a strike.
All three unions mentioned the rising costs of living as a concern in media releases. Without cost-of-living wage protections, workers are struggling to make ends meet and are pushed to strike for a fair deal.
“If unions don’t negotiate wage increases for their members that at a minimum cover inflation then workers fall farther behind,” said Melissa Moroz to rabble.ca. Moroz has been leading negotiations between the Government Licensed Professionals of the PEA and the B.C. government. “The overarching goal of labour unions is to improve standards of living for workers.”
PEA said on their website that private-sector wages are higher than public-sector ones. This means that a lack of adjustments to wages may put public services at risk. They said that wages adjusted for cost-of-living will help recruit and retain employees in the public service.
Inflation rises over seven per cent
Statistics Canada reported that inflation as measured by the Consumer Price Index (CPI) was 7.6 per cent higher in July 2022 than it was in July 2021. They wrote that July was the seventh consecutive month that the CPI increased, meaning that prices of goods such as food, shelter, clothing and more have been consistently higher in 2022 than in 2021.
“The current affordability challenges in our province make the loss of purchasing ability even more critical for working people in British Columbia. Ensuring wages keep pace with inflation is also critical for communities because when workers lose financial capacity, it removes resources from local economies and puts greater strain on public services,” said CUPE B.C. Secretary-Treasurer Trevor Davies.
Despite growing financial burdens on workers, the Bank of Canada Governor, Tiff Macklem, told businesses at a July event hosted by the Canadian Federation of Independent Business to not build inflation into contracts with workers, according to the Globe and Mail.
The Bank of Canada wrote in an email to rabble.ca that they have discussed the risk of a wage spiral, a situation where companies pay higher wages and pass those costs on through prices. This would raise workers’ cost of living and they seek further wage increases to compensate.
“We agree that it is not the Bank of Canada’s role to provide advice to companies on their business decisions. But it is our role to provide Canadian businesses and households with the outlook for inflation,” the Bank of Canada wrote. “To that end, the Governor’s message to the CFIB was the same message he has been giving to all Canadians – that the high inflation we see today is not here to stay and Canadians can be assured that the Bank of Canada will do its job and bring it back down to the 2% target.”
Bank of Canada disconnected from the lives of workers
Many unions were frustrated by Macklem’s statement, according to the Globe and Mail. Moroz said that the statement disregards the ongoing struggle of workers, one that Macklem clearly has not experienced.
“Easy for the Governor of the Bank of Canada to say! What does his rent look like this month?” Moroz said. “Workers didn’t cause inflation. We should not bear the additional costs. Investing in public services and paying workers fair wages benefits all Canadians.”
As wages continue to lag behind cost-of-living, some are saying that we can expect widespread job action. Melissa Moroz of PEA said they are coordinating their job actions with BCGEU because their members work together across multiple government industries.
“We can expect to see more public sector employees take job action in support of cost-of-living adjustment demands,” Moroz said. “None of the provincial public sector unions have signed agreements with the province. They are united in their resolve for fair wages… We could see escalating job action that may culminate into province-wide strike action.”
Beyond B.C., the need for cost-of-living adjustments to wages has been expressed by many workers. The Public Service Alliance of Canada (PSAC) declared an impasse in negotiations with the Treasury Board after an “insulting” wage offer that came while “the cost of living is getting out of hand.”
In Ontario, education workers with CUPE have also demonstrated frustration with insufficient wage offers amidst inflation.
“There is an opportunity for the labour movement to pull together and push back against further inequality,” Moroz said.
Support rabble today!
We’re so glad you stopped by! Thanks for consuming rabble content this year.
rabble.ca is 100% reader and donor funded, so as an avid reader of our content, we hope you will consider gifting rabble with a donation during our summer fundraiser today.
Whether it be a one-time donation or a small monthly contribution, your support is critical to keep rabble writers producing the work you’ve come to rely on as a part of a healthy media diet.
Become a rabble rouser — donate to rabble.ca today.
Nick Seebruch, editor
