New Wage Increase Announced Due to Economic Stability Dividend
FSA members will see an additional pay increase of 0.45% on May 1, 2016 as a result of the Economic Stability Dividend (ESD) negotiated in the last round of bargaining. This increase will be in addition to a negotiated 0.5% increase scheduled for July 1, 2016.
The ESD was incorporated into all public sector agreements as part of the provincial government’s bargaining mandate. It represents the province’s offer to “share the benefits of economic growth.” When BC’s actual economic growth exceeds the rate of growth anticipated by the provincial government’s Economic Forecast Council, half of the difference will be added to public sector wages in the following year. Because the actual economic growth exceeded the province’s projections by 0.9%, wages governed by the ESD will be increased by 0.45%
The ESD is not a bonus but an on-going increase in wages. Future increases will incorporate any ESD increases. For the FSA, the ESD will be incorporated into wages on May 1 each year, although many other public sector unions will see the increase on February 1 due to the term for the renewal of our agreement being offset by three months.
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