Town of Banff employees are unlikely to see any wage increase next year.
On Monday (Sept. 26), council adopted a 2017 financial plan that outlines the formula for how employees receive wage increases, or not. This year’s calculation comes in at -0.24 per cent, but council has directed administration to prepare a budget with no wage increase.
Councillors said they didn’t see any need to decrease wages.
“I don’t see any reason to drop into a negative. I’m not familiar with any other organization that would do that, with the exception of cases of emergency or some sort of endemic problem with the organization,” said Councillor Stavros Karlos.
“We’ve outlined and set very strong policies and procedures in order to ensure that our wages account for inflation and account for job market changes. I choose to respect that process at this time.”
The Town of Banff does not have a unionized workforce.
For 2017, the base wages market adjustment is based on an average of two criteria, including Alberta annual inflation rate for the periods ending June 30 of the previous budget year. This is estimated to be 1.5 per cent for the 12-month period.
In addition, they use a calculation of annualized average change in average weekly earnings – non-union, municipal and regional public administration – in Alberta from July the previous year to June of the current year. This is -1.98 per cent for the 12-month period.
Kelly Gibson, the Town of Banff’s corporate services manager, said the actual result comes to -0.24 per cent.
“What we’re recommending is zero per cent, not going negative on wage adjustment,” he said. “That’s for council’s consideration today as we go forward to budget.”
Mayor Karen Sorensen said she personally didn’t support cutting back wages by -0.24 per cent.
“We’re not going to decrease wages, but because of the way the calculation worked out, no wage increase for employees will be presented in the initial budget,” said the mayor.
“Council can make any changes to the budget they deem necessary, but I would comment that we’ve put that formula in place for a reason and that seems to be the calculated outcome for this year.”
In 2016, employee wages were budgeted at $11.6 million, while benefits were $2.3 million.
