The Regional Municipality of Wood Buffalo is eliminating 168 positions as a result of the poor Alberta economy and the impact of last spring’s Fort McMurray wildfire.
The municipality announced the move Tuesday, adding some of the eliminated positions were vacant. In total, 122 people were served layoff notices.
“With the economic slowdown in oilsands growth, the impact of the 2016 wildfire and the changes to the Modernized Municipal Act (Bill 21), 2017 will be a challenging year for the organization,” Annette Antoniak, interim chief administrative officer, said in a media release Tuesday.
“While efforts have been made to limit impacts on employees, unfortunately, this realignment has resulted in a change in staffing levels.”
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The Modernized Municipal Government Act, the province’s second-largest piece of legislation, was introduced in the legislature last May. It includes changes to how cities and towns are governed in Alberta.
The municipality said it is concerned about the bill’s potential impact on the ability to assess and set rates for rural non-residential taxes.
“Bill 21 proposes capping the ratio between the highest and lowest tax rate at 5:1. Current ratio is 18:1 (rural non-residential to rural residential),” the municipality said. “While there is a grandfathering provision in the proposed legislation, future regulations could require the RMWB to reduce rural non-residential tax rates. The grandfathering only exists until the regulations and technical amendments are determined by the government of Alberta.”
Changes to the MGA are set to come into effect before municipal elections this fall.
READ MORE: Alberta introduces changes to Municipal Government Act
Antoniak said the municipality will continue to focus on recovery efforts as they work through the changes.
Mayor Melissa Blake said changes like this are never easy.
“As we realign our operations, we remain committed to working with our community partners, industry, and the Government of Alberta, to meet the challenges and take advantage of the opportunities ahead. Through collaboration we will find balanced and sustainable solutions.”
READ MORE: Fort McMurray wildfire: 8.5M work hours lost in May and June
The layoff will save the municipality $24.2 million per year. Severance costs are estimated at $2.3 million. The municipality said 1,505 Canadian Union of Public Employees (CUPE) members have the option to take severance. It’s not known how many people will take the offer.
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