Here’s B.C.’s big political idea of 2013

Profit sharing approach to labour relations comes to the public sector, and confrontation may be on the way out

The traditional style of public sector labour relations in B.C. may be on the way out.

The traditional style of public sector labour relations in B.C. may be on the way out.

VICTORIA – One of Canada’s great entrepreneurial success stories in recent years is WestJet, the Calgary-based airline that is expanding across the country and taking on European routes.

Clive Beddoe, the founding CEO of Westjet, was famous for helping the cabin crew tidy up the plane before getting off a flight. And the company is also known for its profit-sharing program, with all employees referred to as “owners” who have a stake in the success of the operation.

I thought of this management approach when news emerged that the B.C. government was offering public service unions a new kind of contract, with a five-year term and wage increases tied to improved economic growth.

The surprising thing is that unions are accepting the idea, even though provincial growth must exceed the government’s independent economic forecast council projections before it can take effect in a given year.

The generally non-militant Health Sciences Association was the first to recommend acceptance of a five-year agreement with only 5.5 per cent raises guaranteed. Then they were joined by negotiators for 51,000 health and social services employees, represented by the B.C. Government Employees’ Union and other unions that have long been adversaries of the B.C. Liberals.

John Fryer, negotiator for the BCGEU going back to the epic battles with Social Credit governments and now a professor at University of Victoria, wasn’t impressed when he heard the news.

“These deals reflect what happens when public sector unions back the losing party in a provincial election,” he said. “Union bargaining power takes a trip down the pooper.”

I think there’s more than that going on. Perhaps today’s union leadership is beginning to accept that its wage, benefit and pension arrangements look pretty good compared to the harsh reality of private businesses competing in a global economy.

I asked Premier Christy Clark if this new approach is inspired by private-sector profit sharing. She agreed that is the model.

“I think that’s a great principle for all of us to work from,” Clark said. “Until now, the growth of public sector wages has been completely insulated from changes in the private sector. And this is the first time we’ve ever been able to successfully link those two things. At this point it’s still a small increment wage growth, but it’s a big change, and I hope we can continue to build on it.”

From an employee perspective, it is indeed modest. If real gross domestic product increases one per cent beyond the independent forecast used in the provincial budget, employees get an additional half of one per cent raise for that year.

Contrast this labour relations development with what’s happening on the federal scene. A classic confrontation is brewing between the Harper government and the Public Service Alliance of Canada.

A key dispute is over sick days, which the government estimates are averaging 18 a year. PSAC currently has 15 “bankable” sick days a year, which the union president refers to as a “negotiated right.”

It takes me back to my first union job, where I was warned never to take just one sick day. We negotiated for two at a time, so always take two, the union rep told me. Implicit in this is the mindset that employees should give as little and take as much as possible.

Looking through my files each December for the B.C. story of the year, I consider what is likely to matter five or 10 years from now.

This partnership approach to building the provincial economy is my pick for 2013.

Tom Fletcher is legislature reporter and columnist for Black Press.

Twitter: @tomfletcherbc

 

Just Posted

The weekly COVID-19 map for June 6 to 12. (BC CDC)
South Okanagan sees only 5 new cases in last week

The Similkameen Valley went a second week without any new cases

Birtch Parlee is one of approximately 132,000 transgender people living across the nation, according to Statistics Canada. Photo submitted
Transgender in a small town – Princeton B.C.

“I buried it. I pushed it down. I lived a lie.”

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

Dan Albas
COLUMN: Reopening the international border

Governments in Canada and the United States are working towards reopening plans for the border

Okanagan Lake (File photo)
Thompson-Okanagan ready to welcome back tourists

The Thompson-Okanagan Tourism Association expects this summer to be a busy one

Bear wanders Kelowna on June 15. (Michelle Wallace/Facebook)
Bear climbs fence, uses crosswalk in Kelowna

The bear was spotted on Baron Road Wednesday evening

This photo of the small wildfire burning above Naramata was taken at 8 p.m. on Thursday, June 17, 2021 (Monique Tamminga Western News)
BC Wildfire on scene of small wildfire above Naramata

Smoke has been showing since earlier in the day

Students in the Grade 10 entrepreneurship program at Summerland Unisus School have completed a cookbook with international recipes. (Contributed)
Summerland students create virtual international cookbook

Entrepreneurship program at Summerland Unisus School uses virtual cookbook as fundraiser

Hundreds of people, young and old, joined the three-day Walking Our Spirits Home procession, honouring residential school survivors, those who never made it home and all those affected by the institutions. Here people walk the third portion on June 13. (Martha Wickett - Salmon Arm Observer)
Walking Our Spirits Home from Kamloops provides path to healing

First Nations in and beyond Secwépemc territory join in to honour residential school survivors

More flames
Lake Country home destroyed in large blaze, 11 dogs rescued

Fire crews are responding to 10839 Hallam Drive

(Facebook/Kelowna Cabs)
Kelowna Cabs reaches tentative agreement with dispatchers union

The tentative agreement could help end the dispute between the taxi company and the dispatchers

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

A boat sharing service is extending to Summerland. The company, Penticton Boat Club and Rentals, is also taking over the boat rentals at Summerland Waterfront Resort. (Photo by Chris Stenberg)
Boat sharing service extended from Penticton to Summerland

Company will also operate boat rentals at Summerland Waterfront Resort

201 First Street West 1980s. Prior revitalization. (Photo from Revelstoke Museum and Archives)
Man who redesigned downtown Revelstoke honoured with lifetime achievement award

Robert Inwood has worked on historical projects across the province

Most Read