2017 Wage Increase Announced Due to Economic Stability Dividend
FSA members will see an additional pay increase of 0.35% on May 1, 2017 as a result of the Economic Stability Dividend (ESD) negotiated in the last round of bargaining. This increase will be in addition to the 1% negotiated increase already scheduled for May 1, 2017 and the 0.5% negotiated increase on July 1, 2017.
This is the second year in a row that the ESD has factored into salary increases, adding 0.45% last year. The ESD is not a bonus paid out one time but an on-going increase in wages. The ESD is triggered annually if BC’s actual economic growth exceeds the rate of growth anticipated by the provincial government’s Economic Forecast Council, with half of the percentage difference being applied to wages. Because economic performance exceeded expectations by 0.6%, public service collective agreements will see an increase of 0.35%.
Keep in mind that while provincially mandated wage increases will total 1.8% in 2017, this amount is still less than the rates of inflation forecast by RBC, TD, and the Bank of Canada, which range from 1.9% to 2.2%. The Economic Forecast Council makes projections for economic growth and not for inflation.
The FSA will work with the employer to update salary scales based on the new increase.
Leave a reply →