The Public Service Agency has calculated the Economic Stability Dividend (ESD) for 2016. The BCGEU has also confirmed these calculations.
Under the terms of our Memorandum of Understanding with public sector employers, the ESD will produce a 0.45% increase on hourly rates. The ESD was negotiated in collective agreements covering workers in direct government, health, social services, crown corporations, universities, K to 12 and other post-secondary institutions. This percent applies to all collective agreements with this memorandum. The ESD is included in several collective agreements the BCGEU negotiated in 2013 and 2014. Hourly rates of pay will reflect these increases beginning February 7, 2016.These agreements also include general wage increases and other important improvements.
For members in direct government, the negotiated flat rate equivalent on the average hourly rate works out to a $.1301 per hour increase ($237.69 annually).
The Economic Stability Dividend is calculated on the variation between the actual growth in provincial real Gross Domestic Product (GDP) and the projected real GDP growth, provided by the provincial Economic Forecast Council. Real GDP is adjusted for inflation and is measured by Statistics Canada. It is published on a provincial basis in their report titled Real Gross Domestic Product at Market Prices in November of each year.
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 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.