Saskatchewan school boards told to cut wages, benefits by 3.5%

Saskatchewan school boards are being told to cut wages or benefits for employees by 3.5 per cent and freeze those rates for three more years.

However, Saskatchewan Finance Minister Kevin Doherty says school boards can lay off staff to meet a budget cut, but he admits that may not have clear in a letter sent to board chairs.

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A letter sent from deputy education minister Julie MacRae to school division board chairs says the cut is in addition to restraint measures required to meet this year’s operating grants.

“The direction of the government, as the funder, is clear, and it is expected that you will engage in the direct negotiations with the bargaining agents of your various employee groups to achieve the required outcomes,” wrote MacRae.

“It is critical that this important work commence without delay and be undertaken with necessary urgency.”

The letter also says the 3.5 per cent cut has to be made to compensation and can’t be achieved through staff reductions, attrition or other cost reductions beyond those required to meet operating grant targets.

Doherty says layoffs would be a last resort, but it is an option.

“They’ll have to try and find some savings within their budgets and if layoffs are part of that, then layoffs would part of that. We’re not taking that off the table at all,” Doherty said Monday at the legislature.

“If it’s unclear in the letter, we’ll make that clear to the board chairs then.”

The Saskatchewan government is trying to tackle a $1.3-billion deficit. The budget introduced last month plans to get that down to $685 million in the year ahead.

The Saskatchewan School Boards Association has said per student funding on average is down almost $500 a student for the upcoming school year.

Association president Shawn Davidson says boards have already been trying to find savings through things such as joint purchasing and joint transportation.

But that won’t make up for the $55 million the province has cut, he said.

“We have member boards out there that are facing five per cent and greater cutbacks to their funding,” Davidson said.

“I don’t know where they can find five per cent without impacting staff numbers – when you consider that 80 per cent of our expenditures is staff – and also without affecting programming. Programming is what we do. That’s our core business.

“We’re being put in a very, very difficult position and asking for this 3.5 per cent reduction in compensation package with minimal changes to staff members is not possible.”

READ MORE: Regina schools end preschool programs due to provincial budget cuts

In the past, Davidson said, boards have been able to negotiate local agreements with staff.

He’s concerned that the letter and legislation introduced last week take away board autonomy. The legislation keeps elected trustees on schools boards, but gives responsibility to make decisions to the minister of education.

Davidson said “the implications of this are grave.”

Education Minister Don Morgan said last week that he won’t approve a budget from Regina Public Schools that cuts preschool programs for deaf or autistic kids.

The Regina public school board said Wednesday that it was eliminating those programs because of a 2.5 per cent, or $5.7 million, funding cut by the province.

Morgan said there won’t be more money coming from the province, but Ministry of Education officials will work with the Regina public board to see what funding is in their budget.

Premier Brad Wall said in March that the government would cut compensation costs across the public sector by about 3.5 per cent this year without reopening existing agreements.

Unions have said any attempt to reopen existing agreements is a breach of contract.

Doherty said boards should go back and negotiate with employees as to where money can be saved, even though some contracts are already done deals.

“We’re not demanding they open the contract. We’re asking them to find 3.5 per cent in savings on total compensation through whatever means possible at the negotiating table, that’s what we’re asking,” Doherty said.