By Isaac Phan Nay | The Tyee
Unions representing about 400,000 B.C. public sector workers are set to negotiate new contracts this year as the provincial government struggles with big deficits and the threat of Trump tariffs.
The BC General Employees Union is the first to head into talks for contracts for about 34,000 provincial workers, from corrections staff to wildfire fighters to social workers. Negotiations began last month, with the current collective agreement expiring at the end of March.
Both sides are gearing up for difficult talks.
The provincial government says it must work toward balancing its budget as it grapples with a deficit, economic uncertainty and threats of U.S. tariffs.
Meanwhile BCGEU head Paul Finch says the union expects to butt heads with the government over wages.
The big thing that we are aiming to achieve is addressing the cost of living and affordability concerns of a number of our members,” Finch said.
The talks will set the tone for contract negotiations with unions across the public sector this year, including the Hospital Employees Union, BC Teachers Federation and BC Nurses Union.
Typically provincial public sector employers, including health authorities, public schools and publicly funded universities, must follow a bargaining mandate approved by the provincial government.
While the finance ministry has not released a bargaining mandate for the next year, Finance Minister Brenda Bailey said employers will be guided by economic pressures and the B.C. budget.
“As we move forward with negotiations, every bargaining mandate must balance the province’s fiscal situation, the broader economic landscape and the ongoing need to support robust public services,” Bailey said in a statement emailed to The Tyee.
B.C.’s projected budget deficit grew to at least $9 billion, during the third quarter of the last fiscal year while the NDP government committed to spending to support people.
Bailey added a challenging fiscal environment has become even more complicated by President Donald Trump’s tariff threats.
Bailey said spending on wage increases must be balanced with other spending needs like infrastructure and services.
“There is a pressing need to strengthen vital services like health care and address significant infrastructure deficits that are holding back our economy,” Bailey said.
“We have a responsibility to ensure that public dollars are used as effectively as possible — both to foster economic growth and to protect the vital services that people rely on.”
Finch said while the union understands the public service is in a difficult economic situation, so are its workers.
He said he expects a sticking point in bargaining to be wage increases for entry-level and lower-paid workers.
“We’re looking to address situations where, especially in the lower end of our classifications, we have a number of members that have to work two jobs,” he said.
“That’s an incredibly difficult position to be in and we need to do our best to address that situation, regardless of the broader economic context.”
He added B.C. is struggling to retain wildfire firefighters, and the union will be looking for better conditions to attract new recruits and keep veteran firefighters in the job.
The BCGEU’s expiring three-year agreement included wage increases that trailed slightly below the cost of living.
The BC Consumer Price Index shows the cost of living rose about 14 per cent between December 2021 and December 2024.
According to Finch, the workers received on average a 13.75-per-cent wage increase over three years.
The contract provided a 25-cent hourly wage increase, plus increases of 3.2 per cent, 5.5 per cent and two per cent.
The agreement also included a cost of living adjustment clause that would let the second- and third-year wage increase bump up to 6.75 per cent and three per cent if inflation exceeded set targets. The clause was triggered both years.
Camellia Bryan, an assistant professor at the University of British Columbia Sauder School of Business, said economic pressures will likely make wage negotiations difficult.
While inflation has pushed the cost of living up faster than wages, Bryan said it may also mean employers have less to spend on compensation.
“It will be harder to negotiate,” she said.
“[The union] might have to bargain quite intensively in order to get the high wages that they are looking for relative to the constraints that the employer might be experiencing.”
She added employers may instead make concessions in other areas.
“If you can’t offer extra pay, look for things that you could offer, like greater flexibility or other employee support,” she said.
