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Nate Horner, President of Treasury Board and Minister of Finance. (Government of Alberta)
Flexible Model

Government announces modernizations for non-union compensation

Nov 2, 2023 | 3:09 PM

The Alberta government says proposed legislation would make it easier for public sector employers to retain and attract talent thanks to a new, flexible compensation governance model.

Provincial officials say Alberta is home to highly recognized public organizations, including post-secondaries and health services. To ensure that the province remains competitive and can attract the talent needed to improve these public bodies, officials say the province must be able to offer appropriate and competitive salaries.

Under the proposed Public Sector Employer Amendment Act, officials say the new model would streamline and harmonize government’s direction for non-union compensation across Alberta’s public sector, ensuring unionized and out-of-scope employees receive comparable pay for comparable work.

“This legislation is long overdue and would alleviate the challenges public sector employers have been facing for years. Reducing barriers will help recruit and retain staff in the public sector,” says Nate Horner, President of Treasury Board and Minister of Finance.

If passed, provincial officials say the amendment act would affect entities currently governed by the Reform of Agencies, Boards and Commissions Compensation Regulation. They add, the current regulations do not account for inflation and evolving labour market conditions. The proposed legislation would primarily change the compensation governance structure for non-union employees at:

  • Alberta Health Services and Covenant Health
  • post-secondary institutions, except independent academic institutions
  • some public agencies, including Alberta Gaming, Liquor and Cannabis Commission, Alberta Innovates, Alberta Pension Services Corporation, Special Areas Board, Travel Alberta and the Workers’ Compensation Board

The government says the Public Sector Employer Amendment Act would ensure that strong government oversight continues, as employers would be required to provide their compensation plans for approval by the minister of Treasury Board and Finance.

Shannon Phillips, Alberta NDP Critic for Finance, made the following statement in response to Bill 5:

“Danielle Smith and the UCP are removing all salary restraints for Alberta’s boards and commissions. This is the same plan that led to massive and shameful misuse of taxpayer’s money under previous Conservative governments, including the scandal at Agriculture Financial Services Corporation.

“Instead of caring about regular Albertans who are struggling to pay rent and buy food, Smith and the UCP are giving the highest-paid executives a raise they don’t need.

“Albertans want to see new schools to address overcrowding in growing communities, more doctors to keep their family healthy, and real action on the housing crisis. The UCP are just making the rich richer at the expense of working Albertans.”