Many health and community social service workers to see modest additional wage adjustments linked to economic growth

Economic Stability Dividend (ESD) provisions that were included in collective agreements covering more than 250,000 public sector workers will provide an additional 0.4 per cent wage increase in February 2018.

This pay adjustment will include HEU members working in the facilities, community social services and community health sectors. 

The modest boost – about nine cents an hour for a typical HEU member – is based on economic growth numbers for 2016 and will be effective the first pay period starting in February 2018.

This newly announced adjustment is in addition to any already scheduled wage increases that were negotiated in the 2014-2019 collective agreements.

Members in these sectors already have a scheduled general wage increase of 1.0 per cent in February 2018. They are now instead set for a  wage increase of 1.4 per cent (1.0 per cent general plus the 0.4 per cent ESD), effective the first pay period in February 2018.

The dividend has paid in each of the last three years, and has meant an additional 1.2 per cent of wage increases to members in these sectors.

The ESD is calculated as 50 per cent of the difference between forecast growth numbers and actual growth in the economy. In 2016, actual growth outpaced forecast growth by 0.8 per cent resulting in the 0.4 per cent ESD. It was included in public sector contracts as part of the public sector bargaining mandate in 2014.

The ESD will also be calculated for 2017 and will be paid out, if applicable, in February of 2019.

The ESD will not result in a wage adjustment for years where economic growth fails to exceed forecast growth.

The adjusted wage schedules will be posted in the bargaining section as soon as they are available.