Watch above: Premier Brad Wall announced he’s freezing wages for senior officials, in a move meant to address revenue challenges amid falling oil prices. But as Teri Fikowski reports, it also sends a chilling message of what’s to come in the next budget.
REGINA – Premier Brad Wall announced a wage freeze for all senior government officials, including cabinet ministers on Friday to help deal with revenue challenges. Wall said the freeze will cover the 2015-16 fiscal years for executive government and the 2015 fiscal year for crown corporations and is expected to save $15 million.
“We think we need to lead by example,” Wall told the media Thursday. “Because of the budget pressures we’re going to have as a result of falling oil prices.”
Earlier this week the premier said the impact of those falling oil prices means Saskatchewan could face a budget shortfall of between $600 to $800 million this year.
The wage freeze applies to the premier himself, cabinet ministers, senior managers and non-unionized executive government employees.
It will also include senior managers and out-of-scope crown corporation employees and health region employees.
“With the revenue challenges we are facing, our government is committed to controlling operating spending,” Wall said. “I believe those measures have to start at the top and that’s the intent of this wage freeze.”
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The government is asking all school divisions and post-secondary institutions to apply the same policy.
MLA and ministers normally receive an annual cost of living increased each year, which was scheduled to be 2.4 per cent this April.
However, Wall said he has asked the government members on the Board of Internal Economy, which governs MLA salaries, to implement the same freeze.
The government is not proposing a wage cut like Alberta.
“Their wages are 35 per cent higher than ours already,” explained Wall. “I think a freeze does set an example, our revenue though serious is not as serious as Alberta’s.”
A political scientist at the University of Regina, Jim Farney said cutting spending in small doses can make an impact if the drop in oil is short term.
“Maybe we can do things like cancel travel and get through a year or two and then the resource revenue will pop back up,” he explained. “But if this is a long term thing then they are going to have to come out and say this is just something we’re not doing.”
Opposition NDP house leader Warren McCall said he supports the move, but adds if the government is serious about reining in spending, officials must do more.
“I think what would be better is if the government revisited their misguided and somewhat stealthy step to bring in three more MLAs.”
The premier said it wasn’t a decision he made lightly, but one that is necessary ahead of a difficult budget.
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