Salary Increase: Economic Stability Dividend
Dear Kwantlen Faculty Association members,
Good news: we will receive a 0.45% salary increase in February 2016 as a result of the Economic Stability Dividend negotiated in our 2014-2019 Collective Agreement. This is in addition to the 5.5% salary increase over the five years of the agreement.
For more information, please see the update below from the Federation of Post-Secondary Educators.
If you have any questions, please don’t hesitate to contact me.
FPSE Member Update
FPSE Members and the Economic Stability Dividend
November 18, 2015
FPSE Locals that have ratified collective agreements under the Economic Stability Mandate will be receiving a pay increase of 0.45% in February 2016.
Last week, Statistics Canada released the finalized 2014 provincial GDP data, reporting that BC’s economy grew by 3.2%. Under the terms of our Memorandum of Understanding with the Post-Secondary Employers’ Association (PSEA), this economic growth is applied as an Economic Stability Dividend (ESD), resulting in a wage increase to be applied on the salary scale.What is the Economic Stability Dividend?
The Economic Stability Dividend (ESD) is a component of the 2014 Economic Stability Mandate that allows for additional general wage increases based on the economic performance of the province. In order for the ESD to be applied, the GDP growth for British Columbia must exceed forecasts set at the start of the fiscal year. The wage increase is calculated based on 50% of the positive difference between the forecast and the data released by Statistics Canada.
How is the ESD calculated?
In November, Statistics Canada releases a report titled Real Gross Domestic Product at Market Prices that includes GDP growth for the provinces. If actual GDP growth exceeds the Economic Forecast Council’s February projected GDP growth, then half of the difference is used to calculate an ongoing general wage increase for union members covered by collective agreements under the Economic Stability Mandate.
How does this affect FPSE members?
B.C.’s real GDP grew by 3.2% in 2014. This exceeded the Economic Forecast Council’s forecast of 2.3% GDP growth by 0.9%. An amount equal to half of that positive difference will go to members as a pay increase 0.45% in February 2016. Similar calculations will be conducted over the next three years and could lead to ESD pay increases in February of 2017, 2018 and 2019.