Alberta is enduring an economic & pandemic shock that is resulting in a structural change to the labour market. There is significant downward pressure on total compensation. It is important that the public sector also respond & reflect market wages. Here are some reasons why. 1/

If the going rate for an Admin position is now $10 & let's say the health sector is paying $12, every time a vacancy opens up, private sector employees will apply. So rather than unemployed people applying, the health sector will be cherry picking employees using tax dollars. 2/

Using the same example, why should the taxes from someone making $10 be used to pay a neighbor $12 to do the same job? That isn't fair.

I have heard some say, "But the healthcare Admin person spends their money on restaurants etc. Cutting their edge hurts the economy." 3/

But even if that is true, and I question that, we are effectively transferring $2 to these particular people to spend ( or save). We could pay them $10 & put the savings to a public good, like joint replacements that everyone has a chance to access. 4/

Or we could say everyone will share in the reduced health costs & we will refund the savings so everyone can spend a little of it at a restaurant instead of these lucky few. Or we could do something else with the savings.

But paying market rates is important. Fin.