Government announces modest “dividend” for public sector workers

Economic Stability Dividend (ESD) provisions that were included in collective agreements covering more than 250,000 public sector workers will provide an additional 0.35 per cent wage increase in February 2017.

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

The modest boost – about eight cents an hour for the average HEU member – is based on economic growth numbers for 2015 and will be effective the first pay period starting in February 2017. 

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

For example, members in the Facilities Bargaining Association are now set for an overall wage increase of 1.35 per cent (including the 0.35 per cent ESD) in February 2017, and a further 0.5 per cent in April 2017.

The ESD is calculated as 50 per cent of the difference between forecast growth numbers and actual growth in the economy. In 2015, actual growth outpaced forecast growth by 0.7 per cent resulting in the 0.35 per cent ESD. It was included in public sector contracts as part of the 2014 government bargaining mandate.

The ESD will also be calculated for 2016 and 2017 and will be paid out, if applicable, in February of 2018 and 2019 respectively.

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.