Does François Legault’s government have the financial means to grant its 564,400 state employees the 21% increase over three years that the Common Front of Central Trade Unions is demanding on behalf of its union members? NO !
But does the CAQ government have the means to improve its latest offer, which it estimates at an increase of 14.8% over five years? Without a doubt YES!
I invite both parties to stop playing hardball! That the chief negotiator of the Legault government, the president of the Treasury Board Sonia LeBel, and the union leaders of the Common Front stop procrastinating and negotiate seriously based on the real budgetary capacity of the Quebec government and its taxpayers.
I emphasize the word CON-TRI-BUA-BLES. For what ? Because undressing taxpayers Paul and Jeannette to dress civil servants Jean and Paulette will not solve the problem of fair remuneration between state employees and the mass of taxpayers.
IN GOOD FAITH… PLEASE!
Each 1% increase in compensation (salary and benefits) for the state’s 564,400 employees costs an additional $600 million.
The Common Front is demanding an increase of 21% over three years, or even 7% per year.
If the government accepted, this would result in an increase in compensation expenditures of $4.2 billion for the first year of the renewal of the collective agreement, namely the current budget year. You should know that the agreement expired on March 31.
Over three years, the increase in state employee compensation would cost us collectively $12.6 billion more.
For its part, the government is offering 14.8% over 5 years, or almost 3% per year. We are talking here about an overall increase of some $8.88 billion over 5 years, or even an average of $1.78 billion per year.
Concretely, the current gap between government supply and Common Front demand is therefore $2.42 billion per year.
If the Legault government increases its offer by a notch and the Common Front lowers its demand by a notch, this would undoubtedly lead to more serious negotiations between the two parties.
Obviously, the CAQ government shot itself in the foot by voting for a 30% salary increase just before beginning negotiations with the public and parapublic sector.
What a blunderer!
THE LEEWAY
As I mentioned last Saturday in my column, the Quebec government would have budgetary room for maneuver of $10 billion.
It’s not me who says this, nor the Legault government, it’s the Parliamentary Budget Officer (independent federal agency) in his recent “Report on the financial viability” of the provincial governments and the federal government.
This suggests that the CAQ government could increase its spending this year by $10 billion or reduce taxes by $10 billion without this coming to unbalance the government’s budgetary situation in the long term.
A margin of $10 billion may seem big. But in reality, it would be enough for the Legault government to respond to the crying needs of the hour for it to melt like snow in the sun.
Examples of glaring needs: financially help low- and middle-income households at all costs; invest more in community groups; improve services for people with disabilities; improve access to a family doctor; absorb a larger portion of the public transportation deficit.