Williams� government announces a salary increase for some public sector workers

Public sector employees whose collective agreement was finalized last year will receive an additional one per cent salary increase in the third year of their agreement, the Williams� government announced today. The announcement came after the provincial government and the Newfoundland and Labrador Association of Public and Private Employees (NAPE) announced they have reached tentative agreements with five bargaining units. These agreements included salary provisions of 0-0-3-3.

�I spoke personally with Ms. Furlong, and she expressed to me a very strong case for extending the one per cent pay increase to those workers whose collective agreements were finalized last year,� said Premier Williams. �I have to say that Ms. Furlong gave an impressive and impassioned argument, and our government agrees that those workers would also receive the extra percentage in their salary for the next fiscal year.

�Our government feels strongly that in recognition of government�s improved fiscal position and the role that our public sector workers played in that improvement, that these employees deserve to benefit from our improved fiscal position. I have always said that employees had to play a role in resolving our fiscal issues, but I also firmly believe they deserve to reap benefits of our improved financial situation.�

The premier said the government is proud of the dramatic and substantial fiscal turn in the province�s finances. This has been achieved through a combination of tough negotiations with the federal government on health care money, equalization and the Atlantic Accord, prudent fiscal management and tough budgets. Significantly higher than anticipated oil prices have also had a tremendous impact on the province�s finances.

�We have turned the corner; however, we still have much work to do,� added the Premier. �We still have a substantial debt to address, along with deteriorating infrastructure and other issues. We must continue to be vigilant with the province�s finances and our expenditures, so that we can build a strong economic base for the future. What we are announcing today is reflective of the balance we are trying to achieve. We are not giving exorbitant raises to our public sector workers, because that would simply undo very quickly all the progress we have made. Instead, we are giving a reasonable and fair increase to our workers, who helped us turn our fiscal situation around.�

Media contact: Elizabeth Matthews, Office of the Premier, (709) 729-3960, 690-5500, elizabethmatthews@gov.nl.ca

2005 11 18                            1:45 p.m.