Government
of
Saskatchewan

 

 

Minister of Education

Legislative Building
Regina, SK Canada S45 083

January 13, 2017

School Division Board Chairs

Re: 2017/18 Public Sector Compensation Restraint

In Government?s mid?year financial report, and more recently from Premier Brad Wall in year-
end media interviews, containing and controlling public sector compensation costs have been
noted as key to managing overall Government spending and helping to reduce the deficit. The
goal is returning the Province?s budget to balance.

As Minister Doherty reported, the Province of Saskatchewan is experiencing a very challenging
fiscal situation, one which requires all of us to share in the effort required to reduce expenses
and increase revenue. All public sector employers are expected to ensure that there are no
increases to the total cost of employee compensation as a result of any ongoing negotiations,
or negotiations for contracts yet to expire. There shall also be no increase in total costs
resulting from any adjustment to out-of?sc0pe compensation.

More specifically, for the government fiscal year 2017-18 total compensation costs will be no
greater than 2016-17. Negotiations need to commence immediately in order to achieve these
goals for in scope employees prior to April 1, 2017. There may be a need to consider such
things as freezing in range increments, general wage increases and performance/bonus pay, for
both in and out of scope employees in order to meet the requirement to contain and control
the total cost of public sector compensation.

Furthermore, Government is asking employers and unions to consider options that could
reduce compensation costs, both in the immediate term and on a more long term basis in order
to lessen the need for actions that would reduce the size of government.

School Division Board Chairs
Page 2
January 13, 2017

This direction has labour relations implications and therefore requires the requisite
confidentiality and action in accordance with employment law and collective bargaining
agreements. I would also request that your organization develop your consultation and
bargaining plans for implementing this specific direction, and general collective bargaining. The
Ministry of Education will assist you in your consultations with the Personnel Policy Secretariat
of the Ministry of Finance. Should you have any questions, please contact Clint Repski at
306-787-6115 or by email at clint.repski3@gov.sk.ca.

Sincerely,

Orr/1M7??

Don Morgan, Q.C.

cc: Honourable Brad Wall, Premier of Saskatchewan
School Division Directors of Education
Clint Repski, Assistant Deputy Minister, Ministry of Education