Manitoba premier may be eyeing more than a wage freeze: professor

Manitoba Premier Brian Pallister has been walking a fine line in the last week — saying he intends to bring in legislation next spring to control public-sector wage growth, but also refusing to release any details until he consults labour leaders.

One labour expert says there is a reason for the coy messaging. It probably has to do with ensuring any crackdown on wages — perhaps a wage freeze — can survive a court challenge.

"Probably what lawyers have told him ... is that if they were just to simply impose legislation, there's a very good chance that the court would strike it down," said David Camfield, associate professor of labour studies and sociology at the University of Manitoba.

"But if they go through some kind of consultation, don't get the results they like and then pass legislation, they'll be more likely to be able to survive the court challenge."

Camfield points to a 2007 Supreme Court of Canada decision that overturned a British Columbia law which gutted parts of collective agreements for health-care workers. The high court ruled the government interfered in the workers' right to bargaining.

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The court pointed to a lack of consultation as a main factor. The government was not prevented from legislating labour provisions but, in essentially replacing negotiated contracts, it had a duty to consult the unions.

"A basic element of the duty to bargain in good faith is the obligation to actually meet and to commit time to the process. The parties have a duty to engage in meaningful dialogue, to exchange and explain their positions and to make a reasonable effort to arrive at an acceptable contract," the decision stated.

Pallister has dropped a few hints about his plans.

His government's throne speech last Monday talked about legislation to control spending. When pressed, he said wages make up three-quarters of the provincial budget and talked of seeking a "pause" on wage increases. But he wouldn't confirm whether that means a wage freeze.

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The comments have left labour leaders confused.

"I've got more questions now than I did before," said Michelle Gawronsky, president of the Manitoba Government and General Employees' Union. "I met with the premier a couple of weeks ago and he assured me at that time that he had no interest or intent in ever interfering in bargaining."

Faculty at the University of Manitoba recently accepted a one-year wage freeze as part of a contract settlement that ended a three-week-long strike.

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The university and the faculty association issued a joint statement during the walkout saying Pallister's government had asked the university and other public-sector employers to extend contracts an extra year with a wage freeze. The faculty association accused the premier of illegally interfering in collective bargaining.

The government's upcoming bill could do more than freeze wages, Camfield suggested.

Collective agreement provisions on layoff procedures, restricting privatization or contracting-out of services and other issues in the British Columbia case were unilaterally changed by the province before being overturned by the court ruling.

Manitoba could make similar moves, keeping the legal precedent in mind, Camfield said.

"If they do some kind of significant consultation prior to legislation, that would change the way the courts view the legislation, in my opinion."

"We should expect confrontation between this government and unions, particularly public-sector unions."