Mr. Speaker, in the 1998 Budget Address I presented to this House on January 22nd, I stated that our net financial position could be impacted by the results of the current negotiations with the Union of Northern Workers regarding pay equity.
At the time, mediation talks on pay equity were underway and collective bargaining had not yet commenced. Therefore, it was inappropriate for me to elaborate on the government's position on this issue.
Since the Budget Address, I have been asked many times by Members what the impact pay equity and the current negotiations with the Union of Northern Workers may have on our budget.
Members stated this information is a key part of our deliberations on the 1998-99 budget. Members and others have expressed concern that programs and services essential to the well-being of the people may have to be reduced to pay more money to resolve the pay equity issues.
Mr. Speaker, mediation talks on pay equity have ended, and this morning at the commencement of collective bargaining our negotiators briefed the UNW on our position.
The budget this government has set for the resolution of this issue and for current negotiations is $ 40 million.
This represents a global budget for dealing with working conditions, salary increases, retroactive provisions for pay equity and a new job evaluation system for the UNW, as well as non-unionized employee groups.
Mr. Speaker, after 10 long years, this government is committed to resolving the issue of pay equity, in order to set the stage for implementation of a bias-free job evaluation system, and a fiscally solid start for the two new governments.
Our priority - as well as our challenge - is to arrive at a solution that protects jobs, ensures service levels are maintained and keeps the current fiscal course as a basis for growth and prosperity.
As a Legislature, we must work together to ensure we achieve that objective. We want to and must work in partnership with the union for a made-in-the-north solution for northerners. Waiting for a tribunal to decide for us compromises our common efforts. The pay equity proposal the government is putting forward is based on an extensive review by the Hay Group, a nationally respected organization in the area of job evaluation.
The Hay Job Evaluation System provides the framework to ensure men and women are paid on the basis of equal pay for work of equal value. To that end, the bias-free approach to job evaluation assesses existing jobs on know how, problem- solving, accountability and working conditions. Using this system ensures there is a common reference for both the GNWT and the UNW to reach a financial settlement on retroactivity which achieves pay equity.
Mr. Speaker, $40 million is all this government, and hence the people of the Northwest Territories, can afford to re-allocate without causing severe service disruption and further downsizing. The GNWT is open to negotiating how this money is applied to the various issues at negotiations.
We believe this offer to be reasonable, in that it represents three percent of overall government spending and 10 percent of the current annual costs of the public service.
I sincerely hope the UNW will consult with and present a negotiated settlement to its members that reflects and supports the efforts of all government employees, and the people of the Northwest Territories, in their collective efforts to date to eliminate the deficit.
This is a unique opportunity to settle other outstanding labour-related issues and build a partnership to protect jobs and create a working environment in the public service that can and will result in enhanced services to the people of the Northwest Territories after years of restraint.
Mr. Speaker, let me say once again, this government is committed to resolving the issue of pay equity. It is the right thing to do. We have an obligation to our employees and to the people of the north to work with the union to resolve this issue.
We now have a positive and workable proposal on the table to do just that.
The Members of this House have worked hard to date to balance our budget and work to eliminate our deficit. We must now face this current challenge with the same spirit and commitment to the future of the north, and at the same time get money into the hands of northerners. Thank you, Mr. Speaker.
--Applause