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

The Tories have put out numbers claiming that Alberta’s per-capita spending is above the national average – but inflated Alberta’s figures by including $3.55 billion in flood relief funding, and drove down the national average by ignoring standard methods of comparison.

“This goes beyond spin, which we expect from politicians. They have deliberately and deceptively overstated how much Alberta spends on a per-capita basis, and deliberately and deceptively understated how much other provinces spend on a per-capita basis,” Alberta Federation of Labour president Gil McGowan said. “And they’re using these distortions to justify cuts on important public services like health care and education.”

When comparing on a province-to-province level, one should find the provincial per-capita spending levels, add them together, and divide by the number of provinces. The government didn't do that. Instead, it took all provincial spending divided by the population. This method drives down the average because some larger provinces, benefitting from what economists call ‘economies of scale, have lower numbers than Alberta.

“They’re playing games with numbers because to them winning is more important than the truth. But this isn’t a game. Public services, and the quality of life for Albertans, are at stake,” McGowan said. “In any other province, a government that engaged in this kind of blatant and deliberate deception – on top of years of arrogance and incompetence – would fall.”

Up-to-date and accurate figures from RBC Economics show that – when the government isn’t paying for flood recovery – Alberta’s per-capita spending is below the national average. Figures from the 2014-15 budget year show Alberta’s spending is $9,786 per person -- $434 less than the national average.

“They use old data, inflated by flood spending, to support their argument that Alberta overspends. The reality is quite different,” McGowan said. “How to deal with Alberta’s budget crunch is a crucial debate for the province. The public deserves to have that debate informed by accurate, fair, and reliable numbers. Albertans deserve better than Tory distortions.”

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

MEDIA CONTACT:

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

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

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

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]

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]

Officials raise “serious concerns” that Copeman Clinic is breaking the law

Edmonton – Senior government staff question the legality of the Copeman Clinic, a private health care clinic, according to an internal government document obtained by the Alberta Federation of Labour.

In a report drafted in January 2013, government officials flagged numerous practices at the clinic that could put it in contravention of the Alberta Health Care Insurance Act.

“Many Albertans have been concerned that the Copeman Clinic operates outside of the law,” Alberta Federation of Labour president Gil McGowan said. “Turns out, Alberta Health officials shared these concerns.”

The ‘Advice to the Minster’ document, obtained through Alberta’s Freedom of Information system, was drafted after Copeman’s Executive Director Rick Tiedemann’s commented in the media about user fees and the number of patients Copeman’s physicians see.

 “Albertans rejected two-tiered health care during Ralph Klein’s ill-fated ‘Third Way’ boondoggle, but the Redford Government is ignoring public opinion, ignoring the advice of their own officials, and turning a blind eye to this clinic’s unCanadian practices,” McGowan said. “They’re allowing the creation of U.S.-inspired private, for-profit health care in Alberta.”

The government document states that the statement made by Copeman’s Tiedemann on user fees “raises serious concerns that the Copeman Healthcare Centre may be in contravention of the AHCIA [Alberta Health Care Insurance Act] since membership fees may be considered extra billing.”

Copeman’s physicians see fewer patients than a typical practitioner in the public system. The government document notes that Copeman may be violating the Alberta Health Care Insurance Act “by voluntarily limiting their practice to only individuals who can pay the membership fees.” Typical family doctors see 2,000 to 3,000 patients. Those working at the Copeman Clinic see no more than 450.

“This puts a strain on the rest of Alberta’s healthcare system. It makes it more difficult for everyday Albertans to find a family doctor, and it means longer wait times,” McGowan said. “It means that medical care is not prioritized to the people who need it most.”

The document advises the minister that there should be a more thorough investigation into the practices at the clinic. However, in the time since the report was written, the government has not taken action, and there have been no changes to the operation of the Copeman Clinic.

“The Copeman Clinic is still behaving in the same way that government officials flagged as potentially illegal,” McGowan said. “Albertans deserve a thorough investigation of private health care clinics.”

Advice to Minister - Concerns on Legality of Copeman Clinic

MEDIA CONTACT:

Advice to Minister - Concerns on Legality of Copeman Clinic

Issued with Thursday, February 20, 2014 New Release Government document questions legality of private health care clinic

Join concerned members of UNA Local 301 at the U of A Hospital on July 24 at 11:30 a.m. Affiliates are encouraged to bring your flags and banners and wear white in solidarity with UNA's Wear White Wednesday Campaign.

WHEN: Wednesday, July 24, 2013 from 11:30 a.m. - 1:30 p.m.

WHERE: University of Alberta Hospital

122 Street and 84 Avenue (112 Street Sidewalk), Edmonton

ISSUE

United Nurses of Alberta (UNA Local 301) RNs and RPNs at the University of Alberta Hospital (U of A), will be conducting an information walkabout at the U of A Hospital to protest nursing cuts and to inform the public about the detrimental affects of AHS's 'workforce transformation' on patient care. Across the province, nursing positions are disappearing as Alberta Health Services (AHS) implements staffing cuts under the banner of "Workforce Transformation" and the "Clinical Workforce Strategic Plan." AHS is also combining these cuts with offensive bargaining proposals in contract negotiations with nurses. For more information visit http://nursesmakethedifference.squarespace.com/

SPECIFIC CONCERNS AT THE U OF A HOSPITAL

The new workforce transformation collaborative model is being demoed at the University of Alberta Hospital (as well as the Royal Alexandra Hospital) involving one surgical and one medicine unit at each site. Overall there were 23 RNs laid off between the four units. Changes being proposed for the U of A Hospital for the fall include decreased numbers of RNs.

For example, for the surgical units:

Days - decreasing by two RNs
Early evenings - decreasing by two RNs
Late evenings - decreasing by one RN
Nights – decrease one LPN

This is of great concern for members of UNA 301. Their patients are sick and often very unstable. This is an acute care hospital and expert nursing care is needed to ensure patient safety.

CONTACTS

Ishani Weera, AFL Organizing and Outreach Director at 780-483-3021 or via e-mail [email protected]

Marie-Therese Mageau, UNA 301 at 780-407-7453

Nurses, teachers, health sciences professionals, and public employees urge government to listen to majority of Albertans

Edmonton - Labour leaders are standing up for the majority of Albertans who do not want to see public services cut on March 7.

At a joint press conference on Monday, March 4, at the Crown Plaza Hotel in Edmonton, the presidents of the province's six largest public sector unions and associations urged Alison Redford to listen to Albertans, most of whom want their public services protected. The Alberta Federation of Labour, Alberta Teachers' Association, Alberta Union of Provincial Employees, Canadian Union of Public Employees-Alberta, Health Sciences Association of Alberta and United Nurses of Alberta have decided to join their voices together to send a clear message about the upcoming budget.

Polling, conducted by Environics from February 14-21, shows that more than 70 per cent of Albertans reject the idea of cuts to public services. More than three quarters of those polled agree that there should be an increase on taxes for the wealthy and corporations.

Far from thinking the government should cut public services, the majority of Albertans believe we should be investing more in health care, education, and other services. Albertans see a growing province, a booming economy, soaring corporate profits and low unemployment, and they're confused as to why health care, education, and community services still don't have the resources they need to do the job right.

Albertans were clear in their message that they support the need for some increased revenues, but that they reject the idea of a sales tax. Only 17 per cent of those polled were in support of a provincial sales tax, 72 per cent said they would be in favour of returning to a progressive income tax, and 77 per cent were in favour of increased taxes on corporations and those who make more than $200,000 per year.

When asked about spending, respondents identified several priorities: Creating a provincial strategy for long-term care for seniors was a high priority for 70 per cent of respondents, while protecting publicly-funded health care against for-profit health care was identified as a high priority by 57 per cent. Nearly half of respondents said that hiring more teachers and support staff for elementary and secondary schools was a high priority.

The government is trying to justify massive cuts to health care and education by saying oil prices have dipped. Albertans aren't buying it. Albertans know a growing economy needs adequate investment in public services.

Because labour leaders were concerned about the direction that budget discussions had been going, they commissioned a poll by Environics Research Group to find out what Alberta are looking for. The poll, which surveyed more than 1,000 Albertans, is considered to have a margin of error of +/- 3.1, with a 95% confidence level.

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MEDIA CONTACT:

Olav Rokne, AFL Communications Director at 780-289-6528 (cell) or via email [email protected].

Fact sheet–Revenue, spending & public sector wages (Revised March 2013)
Fact sheet–Oil companies' profits (March 2013)

Podcast of today's conference