| Salary increases will impact division |
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| Local Content - Local News |
| Written by Trevor Busch |
| Thursday, 18 February 2010 18:16 |
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The dispute over teacher salary increases in the province came to an abrupt resolution earlier this month, after arbitration of a 5.99 per cent increase in salaries resulted in a major victory for the province’s teachers. The arbitration ruling should add nearly $100 million to teacher salaries over the next three years. But as it will cost the provincial government an extra $23 million to make up the difference, the glow may be off the rose. In increasingly cash-strapped Alberta, there are no guarantees the province currently has the money to pay for the increase, raising fears of teacher lay-offs if the government does not give school boards enough money to cover the wage settlement. Last year, the province pushed for arbitration over a conflicting view of changes to how the Alberta Average Weekly Earnings figure was calculated. The Stelmach government had argued for a 4.82 per cent increase, while the Alberta Teachers’ Association had demanded 5.99 per cent. Education Minister Dave Hancock has not been able to guarantee any new money for school boards in the wake of the ruling and has stated he needs to bring the issue to the Treasury Board. As cuts hit some departments in last week’s provincial budget, there are no guarantees the minister will be able to secure the extra funds, which could put increasing pressure on divisions. Horizon Supt. Cheryl Gilmore is looking to the province to make up the $23 million increase. “Like many other boards in the province, Horizon School Division is looking to the province to fund the increase. Without adequate funding from the province to manage AAWE increases this year and the upcoming school year, there will be an adverse effect on the financial health of the district and the ability to maintain personnel for the programs and services our students currently receive. The board’s support for the provincial agreement was based on a commitment by the province to fund the cost of the agreement. Just as the board will honour their contract with teachers, they expect the government to honour the commitment to fully fund the five-year agreement it arrived at with the Alberta Teachers' Association.” “Our Minister of Education, Dave Hancock, has committed to going to Treasury Board with a request for this funding. With a budget currently tabled, the timeline for going to treasury and getting a response will take Honourable Hancock some time. He is unable to make a request while the current budget is on the table. This timeline makes it difficult for boards to commence budgeting in a timely manner.” Gilmore does not view the arbitration ruling from a perspective of right or wrong but points to the decision of Statistics Canada to change its calculation of the AAWE ratio as a contributing factor in the decision. “The Horizon Board of Trustees is really not in a position to make a judgment on whether the ruling of 5.99 per cent is right or wrong. The government of Alberta entered into a provincial agreement with the Alberta Teachers' Association and committed to a five-year contract based on the Alberta's Average Weekly Earnings index. When Statistics Canada came up with a new formula for the index, which moved the predicted 4.82 per cent to 5.99 per cent, the government disputed the application of an index they believed was not reflective of what they had agreed to in the agreement. The arbitrator ruled that the new index is what should legally be applied as a salary increase now and for the remaining years of the contract. When two parties agree to go to arbitration, which was the case with the government and ATA, they agree in principle to the outcome of the arbitrator's decision. In the context of a provincial five-year agreement, local decision making for salary settlements normally part of local governance responsibility was assumed by the provincial government.” If the province does not fund the $23 million cost of arbitration, there could be serious repercussions in the area of staffing in the division, added Gilmore. “If the province does not provide the funding for teacher salaries as determined by the AAWE index, jurisdictions will be looking at a four-to-six-per-cent shortfall in funding salary increases based on some predictions for the 2008-2009 AAWE combined with the increase recently determined. Each percent unfunded is approximately $250,000 for Horizon School Division. With close to 80 per cent of Horizon's budget related to the cost of personnel, it would be difficult for the board to balance a budget without making some cost reductions in the area of staffing.” Gilmore added these is money set aside, but not enough to deal with a major drop in government support. “Horizon has some reserves to handle some modest fluctuation in government funding, but the difference in this case is quite significant and non-sustainable if dependent on board reserve funds. A significant portion of the board reserves is already designated for specific purposes. These funds are called designated or restricted reserves. As of August, 2009, the board's unrestricted reserves totaled $1,725,254. With the provincial claw-back of reserves and in-year adjustment causing a further draw on reserves, the cost to the board's reserve fund this school year totaled $1,370,399. This does not include a further adjustment that may be required for the additional 1.17 per cent to teachers' salaries. Without the level of support that was committed by the province when the agreement was initially formulated, it will be very difficult to move forward with the same level of programs and services, which equates to personnel.” |