B.C. to negotiate public sector contracts for 400,000 workers in 2025 amid fiscal issues
Province entering negotiations with $9.4-billion deficit and threat of Trump tariffs looming
The B.C. government faces a challenging situation as it heads into public sector contract talks with unions representing 400,000 workers this year, according to a business professor.
The province forecast a $9.4-billion deficit for this fiscal year in an update last month, with the B.C. NDP government promising to be "careful" in reducing the record shortfall "over time" by growing the economy rather than cutting services.
However, the forecasted figure comes as contracts for up to 400,000 unionized workers in the province, including nurses, hospital workers, post-secondary school instructors and support staff, expire this spring and fall.
Those unions, many of which supported the B.C. NDP's election, say they hope the government recognizes the value of their labour as contract talks begin.
But Mark Thompson, professor emeritus of industrial-business relations at the University of B.C., said the government faces a tough negotiating position with a record deficit forecast and potentially devastating U.S. tariffs on the horizon.
"The premier has announced that he's heard that government spending is too high," Thompson told CBC News. "And, you know, a few months later, he's got 400,000 people expecting a raise.
"How they're going to balance that, you know, nobody really knows at this point."
U.S. President Donald Trump has threatened a 25 per cent tariff on Canadian goods as one of his first acts in power, a move the B.C. government says could result in the province losing around $69 billion by 2028.
Whether that comes to pass or not could greatly impact B.C.'s negotiating position as it speaks with unions, Thompson said.
"There's always unknowns and, you know, inflation is an upsetting influence, and unfortunately so is the U.S. trade policy."
B.C. Finance Minister Brenda Bailey, whose government has ordered a government-wide spending review amid the deficit forecast, said the province has great respect for its public sector workers.
"We also have negotiations coming up in the context of challenging fiscal times," she said Tuesday. "And so we'll do our best at those negotiation tables respecting our partners across the table."
Union president warns of dispute
Among the unions who are set to negotiate a new contract in 2025 is the Hospital Employees' Union, which represents over 60,000 health-care workers and care aides.
"We know that British Columbians support a quality health-care system and that requires good conditions for workers to be able to provide those conditions for residents, for patients," said Lynn Bueckert, the secretary-business manager of the union. "So I think that is what British Columbians want."
The B.C. Nurses' Union also has its contract expiring soon, on March 31.
Adriane Gear, the president of the union, said they will be bringing up nurses' safety and working conditions at the bargaining table later this year.
"I certainly can understand the fiscal challenges, but I do think that I can't think of another profession that is so short staffed right now and we really need to look at that," she told CBC News.
The first round of bargaining between the B.C. General Employees' Union, representing thousands of government workers in the Public Service Agency, and workers from sheriffs to social workers, started Wednesday.
"Obviously, we need to see an agreement that addresses the urgent cost of living and affordability crisis our members have," BCGEU president Paul Finch told The Canadian Press. "Knowing that, obviously we think we've got a high probability of a dispute this round of bargaining."
Finch said the union is seeking a wage increase, but would not provide the amount.
"We will provide [the government] a package that will include a number of asks and, obviously, bargaining positions," he said. "We will not immediately and entirely provide everything that we're seeking this early."
The union president said the current three-year contract was narrowly approved by less than 54 per cent of the union membership in October 2022.
"It's important that we see a wage increase that addresses the affordability concerns of our members," he said.
With files from Belle Puri and The Canadian Press's Dirk Meissner