To the Editor:
Premier Prentice has now stated publicly, as pertains to Alberta's impending budget imbalances, that firstly, 50 per cent of provincial spending currently goes to public sector wages and benefits, secondly, that Alberta's public service is among the highest paid in the country, and thirdly, that a large part of the problem is wages.
In light of upcoming negotiations, then, between Premier Prentice and Alberta's public sector unions, it is clear that the unions play a significant role in addressing this problem, which is, in truth, “one which we are all in together.” Many in the private sector have endured economic downturns like this before, and they are indeed painful. Some face reduced work hours, others face wage cutbacks, while many lose their jobs or businesses entirely. However, whether one likes it or not, or understands it or not, it is their way of “doing their part until things get better.”
In truth, both our provincial government and public sector union leaders can take responsibility for creating this situation. Greed on behalf of the unions, and political expedience rather than principle on behalf of our government, by refusing to deny ever-increasing civil service wages and benefits. Had our government taken a more balanced approach, each and every citizen of this province would have benefitted from our oil wealth, as opposed to having channeled an inordinate amount of it into the public service. Basic prudence and pragmatism warned us to build a reasonable cash reserve for an inevitable economic downturn, which is now upon us.
No surprise, then, that desperation is now rearing its ugly head, with the spending sector calling for higher or new taxes as government revenues simply must be maintained in order to sustain that which has clearly shown itself to be unsustainable (hence, the familiar battle cries to tax corporations, or tax the oil companies; or better yet, increase royalties on oil and gas itself, hardly a practical solution considering oil and gas companies are already having to lay off staff and significantly curtail spending because of depressed oil prices).
Of paramount importance seems to be the preservation of current levels of public sector employment, and particularly compensation. What is worth noting however, if I understand correctly, is that there have apparently been little or no wage increases in public sector compensation for the last few years, and only minimal increases are legislated in the next few years as well. If this is the case, and Alberta's public service is STILL among the highest paid in the country (12% above the national average, according to Premier Prentice), it is pretty obvious that compensation, WAS, and STILL IS, unreasonable. The shallow defense by union leaders that “private sector wages are high in Alberta, too” conveniently ignores the fact that private sector workers are not paid out of the tax base.
To be fair, it is not only the unions who should be asked to make concessions; indeed, unions do have a valid argument in saying that cutting back on "front-line workers" (those who work more directly with the public, and are typically on the more modest end of the pay scale) will accomplish little, and may only exacerbate chronic deficiencies in government services. Conversely, addressing compensation to, and an unnecessary excess of, highly paid senior management and bureaucrats, for example, would more likely achieve the desired result, without any real materially adverse effect.
Finally, as leadership starts at the top, Premier Prentice himself would gain more credibility, and dare I say more support, were he to more seriously address the cost of running his own government. Wages, allowances, pensions and severances currently in place for MLA's are clearly excessive; implementing a miniscule five per cent wage rollback, in light of their recent 30 per cent wage hike, is symbolic, and nothing more.
In any event, he now has the opportunity to rise to this challenge, take a strong stance, and actually lead this province, unlike his ineffectual and unprincipled predecessors. One can only hope that he has the courage and political backbone to take the tough but necessary courses of action, instead of caving to vested interests to stay in their proverbial good books.
Don Rachinski
St. Vincent, Alberta
