Province files statement of defence for wage freeze legislation

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This article was published 16/10/2017 (2395 days ago), so information in it may no longer be current.

The Manitoba government says it acted within its rights in passing legislation earlier this year to freeze public service salaries.

In a 15-page statement of defence filed this week in Court of Queen’s Bench, the Progressive Conservative government led by Premier Brian Pallister says it took several steps to limit Bill 28’s impact on the collective bargaining process.

It also notes it is premature to consider the constitutionality of the Public Services Sustainability Act because, while given Royal assent, it’s not been proclaimed into law.

The government says the legislation does not alter existing public-sector collective agreements, and protects the right to strike under provincial law.

It also permits collective bargaining to continue “on a wide variety of significant workplace issues,” including working conditions, employee health and safety, seniority, disciplinary procedures, contracting out and job security, including no-layoff clauses.

The province says the wage controls set out in the legislation cut across the public sector, and apply to unionized and non-unionized employees alike.

“The PSSA does not interfere with existing collective agreements that were negotiated in good faith and more particularly does not nullify any of the terms of an existing agreement,” the statement of defence says.

Bill 28 imposes wage freezes in the first two years, a maximum of 0.75 per cent in the third year and one per cent in the fourth year on new collective agreements in the public sector. About 120,000 workers are affected by the legislation.

In July, the Manitoba Federation of Labour and more than a dozen unions launched a court challenge, arguing the government’s legislation undermines collective bargaining rights and is unconstitutional.

The MFL says while Bill 28 is not yet law, it’s already cast a chill on contract talks, with employers refusing to discuss wage increases.

Last month, professors at the University of Manitoba ratified a new four-year agreement with the university – the first public-sector deal reached since the PSSA was passed. Professors, librarians and instructors acknowledged on their ratification ballots they reached the deal under duress and it was “not freely bargained.”

The University of Manitoba Faculty Association is participating in the court challenge against Bill 28. Its members say they expect to revisit the wage part of the new collective agreement should the coalition of labour groups win its case in court. The MFL predicts other public-sector unions will place the same conditions on any new collective agreements they conclude.

Meanwhile, the province, in its statement of defence, notes the legislation is “time-limited” and does not prevent future wage increases after each public-sector unit undergoes the four-year “sustainability period.”

The legislation also allows for salary “step” increases for employees who have not reached the top level of their wage schedule.

Responding to specific clauses in the MFL’s statement of claim, the government says it had no legal duty to consult or negotiate with public-sector unions before passing Bill 28. It says the plaintiffs had an opportunity to make themselves heard on the legislation at a legislative committee hearing in May.

The government further says the decision to introduce wage-control legislation is entirely its own to make, and “there not need to be an economic crisis” before it mandates controls over public-sector expenditures.

The Progressive Conservative government introduced public-sector wage controls this year as part of its bid to balance the province’s budget within an eight-year period. It projects a summary budget deficit this fiscal year of $840 million.

larry.kusch@freepress.mb.ca