How will wage losses affect your municipality?

Nova Scotian workers – including nurses, school board workers, long-term care
workers, education assistants and others – have been waiting years for a decent pay
increase. Better wages are necessary to get the economy growing.

The McNeil Government is imposing a two-year wage freeze on public sector workers,
followed by maximum wage increases in year three and four that are below inflation

These attacks on public sector workers are unfair and likely unconstitutional. This
means real wage losses projected as 5.5% in four years, as the rising cost of living
outpaces wage gains.

They’ll also do serious damage to the economy. Suppressing public sector wages will
eventually drive down private sector wages.

Households have maintained consumer spending by increasing their debt to record
levels and leveraging equity in their homes as house prices have escalated. This has
been affordable with low interest rates, but won’t be sustainable as interest rates rise
and real estate prices plateau or decline.

Labour compensation and household spending are responsible for well over half of our
country’s national income and spending and for more than 60 per cent of our
economic growth since 2009. If labour compensation and consumer spending don’t
increase at a decent and sustainable pace, then our economy won’t grow at a decent
pace either.

From a Newsletter sent out by CUPE Nova Scotia
To view the entire Newsletter click here.