Edmonton – The Alberta Federation of Labour is pleased and proud that Siobhán Vipond, secretary treasurer and acting president, has been named to the Premier’s Advisory Committee on the Economy.

The Overview

It is clear Alberta is facing a challenging fiscal landscape. But the problem has much more to do with revenue than spending.

Past Progressive Conservative governments have been entirely unwilling to examine the revenue side of the ledger, which always put public service cuts squarely at the centre of the agenda. Alberta has had a long history of justifying cuts to public services. Whether it is zero-based budgeting initiatives or discussions about “trimming non-essential services,” the narrative has not been whether we will cut, but how much?

The new Government of Alberta has a critical task ahead as it attempts to turn the page on decades of austerity. Since being elected four months ago, it has made considerable progress in raising new revenues needed to support public programs and services. However, given Alberta’s continued reliance on high commodity prices, much remains to be done as Minister Ceci now anticipates a record budget deficit of at least $5.9 billion.

By eroding tax fairness, past governments have placed the new government in an extremely difficult position as it asserts the need to maintain public services and staff levels, while addressing serious revenue shortfalls.

Provincial budget hurts front-line services as government blames workers

Edmonton – Alberta’s 2015 budget shows that the government has public services in the crosshairs.

The budget, tabled on Thursday, March 26, will eliminate 2,000 public sector jobs – mostly in health care – and will increase fees for services. The government’s budget documents also included promises to undermine public-sector wages. In all, the budget promises to cut $1.9 billion overall from the services Albertans need.

“Prentice is more interested in maintaining low taxes for his corporate buddies than maintaining quality front-line services in health care and education for everyone else,” Alberta Federation of Labour president Gil McGowan said. “This isn't a balanced approach, it isn’t a ‘hold-the-line budget.’ This is a budget that will hurt everyday Albertans, and it doesn’t spread the burden by increasing corporate taxes.”

On the chopping block in the budget are 1,700 health care employees and 244 education employees.

“You can’t cut 1,700 jobs from health care without having an impact on front-line services. Everyone will see fewer public services – especially health care – in the next few years,” McGowan said. “It’s galling to think that they’ve brought back a health care levy while taking an axe to the health care system. Albertans are going to start paying more for their health care, while getting a lot less.”

Despite clear public support for proposed revenue measures the budget did not include any changes to corporate taxes or to royalty rates on the province’s natural resources.

“The government is not listening to its citizens,” McGowan said. “Albertans want to be paid fairly for their resources. They want large and profitable corporations to pay a fair tax rate – something closer to what we had under Lougheed.”

MEDIA CONTACT:

Olav Rokne, Communications Director, Alberta Federation of Labour at 780.218.4351 (cell)
or via e-mail [email protected]

Urgent Action

Sign the Better Way Alberta petition

The Better Way Alberta coalition is urging the government to fix the province’s broken revenue system. And we’re asking you to sign our petition. Join the thousands of Albertans who have already signed, and help be part of the solution.

The Petition

We the undersigned residents of Alberta, petition the Legislative Assembly to ensure there is enough money to pay for necessary public services like education and health care by introducing tax and royalty reforms that include the following measures:

• increasing the tax on corporate profits to a rate that is closer to the national average;
• replacing Alberta’s flat income tax with a progressive tax that requires high-income earners to pay higher tax rates than middle and low-income earners;
• and introducing royalty changes that ensure Albertans receive a fair share from the sale of their resources.
•  

You can sign the petition online at www.BetterWayAlberta.ca or in person at the Alberta Federation of Labour offices (Parkington Plaza, #300, 10408 – 124 Street NW, Edmonton, AB T5N 1R5).

News

Better Way Alberta campaign turns a mirror on Tory mismanagement

Over the next few weeks, voters will be hearing from the Better Way Alberta campaign, showing them that there are sensible, moderate measures that can help ensure the long-term financial stability of the province.

The province-wide campaign will consist of a central website and petition; a radio and online advertising campaign; a direct-mail campaign to every household in Alberta; and a door-to-door campaign in which canvassers will have face-to-face conversations with Albertans about the Better Way Alberta campaign.

 “Who created the current budget mess? It’s time for Premier Prentice and the Tories to look in the mirror,” says Alberta Federation of Labour President Gil McGowan. “We’re not facing a budget crunch because of anything individual Albertans did. The real problem is that successive PC governments have blown holes in the revenue base we need to fund education, health care and other services that Albertans rely on.”

According to the government’s own numbers, Alberta could increase the amount it gets from taxes by $11.6 billion a year and still have the lowest taxes in Canada. Most of that $11.6 billion that is going uncollected by Alberta’s inequitable tax code is being left in the pockets of the province’s richest individuals and most profitable corporations.

“If we’re all in this together, as Premier Prentice says, why should corporations and the wealthy get a free pass?” McGowan said. “And why should ordinary Albertans pay for the mistakes of politicians again?”

The campaign was created by a coalition of the Alberta Federation of Labour, United Nurses of Alberta, the Health Sciences Association of Alberta and the Canadian Union of Public Employees (Alberta Division). Visit www.betterwayalberta.ca for more information about the campaign, or to sign the petition calling on the government to reform its revenue system.

Looming Temporary Foreign Worker deportations highlight inhumanity of program

Thousands of vulnerable Temporary Foreign Workers (TFWs) are facing deportation.

On April 1^st, thousands of work permits will expire, and the workers who hold those permits will be forced to leave. They and their employers were not allowed to renew those work permits because the government tightened the rules on the Temporary Foreign Worker program.

“The Temporary Foreign Worker program needs to be reined in, but without affecting the workers who are already here,” AFL president Gil McGowan said. “There should not be any more TFW permits for low-wage employers, but the workers who are already here should have been allowed to stay.”

There are more than 70,000 Temporary Foreign Workers in Alberta. The province has the highest percentage of its workforce composed of Temporary Foreign Workers of any jurisdiction in the country. In particular, it is in Alberta where low-wage employers have made the most aggressive use of the program in an attempt to drive down wages.

Did you know…

• Even before the price of oil crashed, revenue generated from Alberta’s shrunken taxes on personal income and corporate profits covered only about 40 per cent of the cost of public services, compared to about 60 per cent in other provinces.

• Women working full-time only earned 63 per cent of the annual average salary their male counterparts earned in Alberta.

• Alberta’s spending is $9,786 per person on public services — $434 less than the national average, despite the fact that cost-of-living is higher here.

Events

• March 21:  International Day for the Elimination of Racism

• April 16-19: AFL Convention “Dream No Little Dreams”

• April 28: International Day of Mourning for Workers Injured or Killed on the Job

2015 Backgrounder: How the Government Fudged Per-Capita Spending Figures

Backgrounder issued with New Release: Mar 11: Misleading numbers undermine Tory credibility

On International Women’s Day, the Premier of Alberta is framing his election campaign around an attack on women’s hard-earned equality gains

Edmonton – The Alberta Federation of Labour is marking International Women’s Day by standing up for women’s jobs and equality gains in the public sector.

The majority of Alberta’s public sector workers – those who work in health care, education, in cities and towns, seniors’ care – are women.

“The Prentice PCs are gearing up for a multi-million-dollar election campaign that targets women’s modest wage gains in the public sector,” Alberta Federation of Labour Secretary Treasurer Siobhan Vipond said. “When Jim Prentice talks about health care, education, and public service workers, he is talking about women. When Jim Prentice blames public sector workers for his government’s appalling record of tax and royalty giveaways, what he is really doing is blaming Alberta women—who earn just 63 per cent of what men earn—for his government’s reckless tax and royalty giveaways.”

An AFL analysis of public sector wage settlements in Alberta, released for International Women’s Day, showed public sector wage settlements between 2011-2014 delivered a modest 8.8 per cent of cumulative increases. The majority of the workers covered by these collective agreements were women.

By contrast, Alberta’s oil and gas sector workers saw a 17 per cent increase in their average weekly earnings between 2011-2014. Construction workers saw a 14 per cent gain. Managers of companies also saw a 17 per cent gain, while those in finance saw a 13 per cent increase in their annual earnings.

Vipond says Alberta women benefit from a wage advantage in the unionized public sector. But economy-wide, Alberta is the most unequal province in Canada. “When Alberta women look in the mirror, they see the highest levels of inequality in Canada,” Vipond said.

“The unions that represent women in the public sector have delivered pay equity, modest but reliable pensions, and health and safety protections,” Vipond said.  “When we struggle for dignity and fairness in the workplace, women are the beneficiaries.”

Fifty-five per cent of Alberta’s overall unionized workforce, in both the public and private sectors, are women.

The Alberta Federation of Labour advocates that:

• Alberta remains the only jurisdiction in Canada without a voice for women in government. Alberta should establish a free-standing Status of Women ministry.
• Alberta has among the lowest number of child care spots and the highest child care fees in Canada. Public early childhood education and child care must be a priority if Alberta is to achieve better wage equality and educational outcomes for children

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MEDIA CONTACT:

Olav Rokne, Communications Director, Alberta Federation of Labour at 780.218.4351 (cell) or via e-mail [email protected]

Better Way Alberta campaign offers Albertans solutions to government’s budget woes

Edmonton – A coalition of major public-sector unions is launching a $500,000 province-wide campaign aimed at saving public services from deep cuts, and encouraging the provincial government to address its budget woes by fixing the province’s broken revenue system.

 The Better Way Alberta campaign, which presents evidence that the government’s budget woes are caused by systemic problems in taxes and royalties, will be launched at an event today at the United Nurses of Alberta offices (Sixth Floor, 11150 Jasper Avenue), featuring the presidents of the Alberta Federation of Labour, United Nurses of Alberta, the Health Sciences Association of Alberta and the Canadian Union of Public Employees (Alberta Division).

“Premier Jim Prentice has said that Alberta’s budget is sinking, but if that’s true, it’s because his party has spent decades blowing holes in the revenue system that’s supposed to pay for the services on which Albertans rely,” Alberta Federation of Labour president Gil McGowan said. “Instead of dealing with the problem, the premier has proposed a reckless nine-per-cent budget cut across the board. That will cause pain to everyday Albertans, put people out of work, and possibly deepen the economic turmoil the province is facing. There is a Better Way.”

What:                   Better Way Alberta press conference and launch

When:                  1 p.m. March 5 (TODAY)

Where:                United Nurses of Alberta offices, 6^th Floor, 11150 Jasper Ave. Edmonton

Who:                     Alberta Federation of Labour president Gil McGowan

                                United Nurses of Alberta president Heather Smith

                                Health Sciences Association of Alberta president Elisabeth Ballermann

                                Canadian Union of Public Employees (Alberta Division) president Marle Roberts

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MEDIA CONTACT:

Olav Rokne, Communications Director, Alberta Federation of Labour at 780.218.4351 (cell) or via e-mail [email protected]

Better Way Alberta press conference scheduled for 1 p.m. and 2 p.m.

Edmonton – Because the government has scheduled a press conference at 1 p.m., and many reporters cannot make it to our press conference, we will host a second press conference at 2 p.m.

What:              Better Way Alberta press conference and launch

When:              1 p.m. and 2 p.m. March 5

Where:             United Nurses of Alberta offices, 6^th Floor, 11150 Jasper Ave. Edmonton

Who:                Alberta Federation of Labour president Gil McGowan
United Nurses of Alberta president Heather Smith
Health Sciences Association of Alberta president Elisabeth Ballermann
Canadian Union of Public Employees (Alberta Division) president Marle Roberts

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MEDIA CONTACT:

Olav Rokne, Communications Director, Alberta Federation of Labour at 780.218.4351 (cell) or via e-mail [email protected]

Instead of cutting services, we need to end sweetheart deals for corporations and the wealthy, says Better Way Alberta campaign

Edmonton – In response to comments from Premier Jim Prentice blaming Albertans for the province’s budget woes, a coalition of major unions is launching a $500,000 province-wide campaign aimed at saving public services from deep cuts by urging the provincial government to fix its broken revenue system.

“Who created the current budget mess? It’s time for Premier Prentice and the Tories to look in the mirror,” says Alberta Federation of Labour President Gil McGowan.

“We’re not facing a budget crunch because of anything individual Albertans did. The real problem is that successive PC governments have blown holes in the revenue base we need to fund education, health care and other services that Albertans rely on.

“The premier wants to impose a reckless nine-per-cent budget cut. Cuts of that magnitude will devastate public services that are already stretched to the breaking point…and they won’t address the root causes.  The real solution is to reverse years and years of irresponsible tax and royalty giveaways to profitable corporations and the wealthy.”

The Better Way Alberta campaign’s home is www.betterwayalberta.ca. On the site, Albertans can explore the various ways in which the provincial government has destroyed the revenue system, and given away billions of dollars to big corporations and to very wealthy individuals.

“The premier is trying to blame the looming deficit on nurses, teachers, janitors, secretaries—the people who work hard every day for the citizens of the province—when the problem was really caused by irresponsible tax and royalty giveaways.” McGowan said. “He’s trying to spin a tale that the province isn’t frugal enough, when the truth is that Alberta is in the middle of the pack when it comes to how much it spends on public services. We spend a little more per person than Nova Scotia, and a little less than New Brunswick.”

The province-wide campaign will consist of a central website and petition; a radio and online advertising campaign; a direct-mail campaign to every household in Alberta; and a door-to-door campaign in which canvassers will have face-to-face conversations with Albertans about the Better Way Alberta campaign. The coalition is also considering townhall meetings and rallies.

“Poll after poll shows that Albertans understand there is a better way to approach revenues,” McGowan said. “They’re willing to look at how this province pays for services. But successive premiers have done nothing but cut. To his credit, Premier Prentice has said he’s willing to talk about revenues and ‘put everything on the table.’ But if he’s serious about that, why has he ruled out increasing royalties and taxes on corporations and the wealthy? It sounds like the more of the same from an un-reformed Tory: perks for their friends and pain for everyone else.”

According to the government’s own numbers, Alberta could increase the amount it gets from taxes by $11.6 billion a year and still have the lowest taxes in Canada. Most of that $11.6 billion that is going uncollected by Alberta’s inequitable tax code is being left in the pockets of the province’s richest individuals and most profitable corporations.

“If we’re all in this together, as Premier Prentice says, why should corporations and the wealthy get a free pass?” McGowan said. “And why should ordinary Albertans pay for the mistakes of politicians again?”

If the Prentice government imposes a nine per cent cut, Alberta will end up spending less on public services than much poorer provinces, even as its population continues to boom. Albertans will have to deal with larger class sizes, more over-crowded hospitals and even longer waits for new infrastructure.  Economists also agree that government cuts will likely tip the whole economy into recession.

“Oil prices go up and down. Albertans know that, and their government should know that by now,” McGowan said. “But every time there’s a slight downturn, government takes aim at public servants, rather than planning for the long term, budgeting better, and fixing the holes in the province’s revenue system.”

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MEDIA CONTACT:

Olav Rokne, Communications Director, Alberta Federation of Labour at 780.218.4351 (cell) or via e-mail [email protected]

Cuts would weaken public services and deliver a significant blow to the provincial economy

Edmonton – Proposed nine per cent cuts to government spending will drop Alberta to near the back of the pack among Canadian provinces in terms of per-capita spending on public services.

If the cuts proposed yesterday by Premier Jim Prentice are enacted, Alberta will move down to eighth-place amongst Canada’s ten provinces in terms of per-capita spending on health care, education and other public services. At present, the province is in sixth place.

“Premier Prentice’s plan to lop nine per cent off the province’s spending on public services is wildly irresponsible,” Alberta Federation of Labour president Gil McGowan said. “What the so-called Klein revolution taught us is that deep cuts don’t end recessions, they make them deeper and longer.”

According to figures published by the Royal Bank of Canada, Alberta currently spends about $9,786 per person on public services, slightly less than the average for other provinces. If the proposed cuts are enacted, this would be reduced to $8,905, ahead of only Ontario and Quebec, whose more urbanized populations allow them to deliver services more cheaply.

“Obviously, the declining price of oil is a big concern. But the effect of low-priced oil on the provincial budget has been magnified by irresponsible choices made by successive PC governments. Specifically, things like the flat tax, corporate tax cuts and royalty cuts have blown a hole in the revenue base that we need to fund important public services like education and health care,” McGowan said. “The solution is to fix the holes, not sacrifice the services that our growing population needs.”

The RBC figures also show that no other province spends less on public services as a proportion of its economy than Alberta. In Alberta, the government spends only 11.3 percent of the provincial economy on public services, while the Canadian average is 18.7 percent. The next-lowest spending province is Saskatchewan, where they use 16.1 percent of their economy to fund public services.

“Premier Prentice wants to leave the impression that we have no choice but to cut spending, even on core services like health care and education,” McGowan said. “But the truth is that we have many options. If we collected revenue at a rate that was closer to the national average we’d be able to weather this storm more easily. The Tories themselves admit that we could raise taxes by $11 billion a year and still be the lowest tax jurisdiction in the country. And it’s important to remember that we still have no debt. The point is that cuts are not the only alternative.”

MEDIA CONTACT:

Olav Rokne, Communications Director, Alberta Federation of Labour at 780.218.4351 (cell)
or via e-mail [email protected]