The $1-billion union carrot creating some worries

VICTORIA - The race is on for public sector unions hoping for a share of the $1 billion the government has set aside as an early signing bonus.
Or at least the government would like it to be.
Everyone is still being mostly positive, but the early indications is that the $1-billion bonus could prove to be a problem.
Finance Minister Carole Taylor, responsible for public sector bargaining, is trying for a new, more co-operative approach. The benefits would be both political and practical.
But the very early indications are that the way ahead is going to be bumpy.
Taylor is hoping to convince the unions that bargaining needs to be more flexible. Money shouldn't be the only issue, she says. Perhaps union members would also be interested in training, or time off or improvements in workplace conditions.
And she's abandoned official province-wide wage mandates. If some employee groups are being paid below market value - trades workers in hospitals come to mind - they could expect a larger increase than other members of their union.
It's not an easy sell. Unions like the idea of common increases, in part because they don't want to get yelled at by the members who do less well.
And it's especially tough when there is significant pent-up wage demand across the board after pay was frozen, or even cut.
Taylor has attempted to ease the way to a new style of bargaining by coming up with a reasonable amount of money. The government has allocated $4.7 billion over four years for contract settlements. That's about 2.6 per cent a year, enough to cover inflation and provide employees with a small catch-up increase.
In a bid to get faster settlements, there's another $1 billion for unions that sign before their current contracts expire - March 31 for almost all unions. That's about $3,400 for each of the 260,000 employees involved.
Taylor says the money will vanish at midnight on March 31, when the fiscal year ends. Accounting rules mean the money, from this year's surplus. has to be spent by then or it goes to debt reduction, she says.
So far unions aren’t buying the deadline. They're worried that the offer is an attempt to encourage them to rush to inferior deals, or pit one union against another.
And they warn that negotiations will be more difficult if the $1 billion is taken off the table March 31 even if an agreement is near.
It's too early to say how this will play out. The BCGEU had its first bargaining session last week, and issued a sharp criticism of the government's position on job security and contracting out. But the two sides are scheduled to meet three days a week until March 31, a sign of serious intent. (The BC Nurses Union doesn't expect to be ready to start talks until March.)
The government has added staff to support bargaining, and hired Lee Doney as a special advisor. Doney is a recently retired deputy minister, whose long career included a stint working close with unions as the head of Forest Renewal BC.
This is a big issue for the government.
Politically, the Liberals have recognized that the public has run out of patience with union-bashing and imposed contracts. The teachers ' strike was a turning point, especially the public support for the union even after the strike was declared illegal.
And practically the government has recognized that bad employee-management relations are costly. Organizations that are seen as inferior places to work either fail to attract the best candidates or pay a premium to compete with better work environments.
So far everyone involved sounds at least a little hopeful, but the practical challenge of doing deals by March 31 is enormous.
Taylor should be looking for a way to keep the $1 billion available if there is real bargaining progress as the deadline nears.
Footnote: The BC Teachers' Federation doesn't expire until June 30, and Vince Ready is still preparing a report recommending a new bargaining structure. The union will get access to an equivalent pool of money - about $130 million - to encourage a quick settlement. The money will come from the contingency fund in next year's budget.