Public Sector Employers Amendment Act, 2023*

Summary#

• This bill changes how Alberta’s government oversees pay and benefits in the public sector. It gives the Finance Minister more power to set rules for compensation, especially for non-union staff and board members of public agencies.

• It also creates new tools to coordinate bargaining, require pay plans, audit compliance, and recover money if agencies pay more than allowed. The older law on agency executive pay is repealed and folded into this system.

• Key changes:

  • Expands the Minister’s power to issue binding directives on compensation before, during, and after contract talks.
  • Lets the Minister set province‑wide pay policies for non‑union employees and for board members (including honorariums and expenses).
  • Allows the Minister to require “compensation plans” from employers for non‑union staff and approve or reject them.
  • Creates employer committees and employer associations to coordinate bargaining and HR practices, with government representation.
  • Requires compliance reports and allows audits; sets fines for non‑compliance.
  • Treats any excess pay as an “overpayment” and lets the province claw it back from the employer (not the employee).
  • Voids contract terms that exceed the approved limits and limits lawsuits over pay reductions.
  • Replaces the Reform of Agencies, Boards and Commissions Compensation Act.

What it means for you#

• Workers (unionized)

  • Your union contracts are still bargained, but employers must follow provincial directives and fiscal limits during talks.
  • Bargaining may be more centralized and coordinated across sectors (like health, education, post‑secondary).

• Employees not covered by a union contract (managers and professionals)

  • Your pay and benefits may be set under province‑wide policies and employer “compensation plans” that need government approval.
  • Any raises not yet implemented when a new policy takes effect can be blocked if they exceed the limits.
  • If your current pay is above the new cap, you can generally keep it for up to two years; after that, the extra amount would stop.
  • The law says these changes are not “constructive dismissal” (not grounds to claim you were forced out), and it limits legal claims for lost pay due to these rules.

• Board members of public agencies

  • Your honorariums, per diems, and expenses may be set or capped by provincial policy.
  • Agencies must follow these rules and may need to report on compliance.

• Public sector employers (e.g., Alberta Health Services, school boards, publicly funded universities and colleges, and other provincially funded agencies named by regulation)

  • You may have to join employer committees or associations, share compensation data, coordinate bargaining, and implement common strategies.
  • You must submit pay plans for non‑union staff when required and get approval before changing them.
  • You must file compliance reports signed by your CEO or chair and accommodate audits.
  • If you pay above what is allowed, the province can recover the amount from your funding (the agency, not the employee, repays).
  • Some normal agency laws (like certain finance and audit statutes) do not apply to these new committees/associations; the Minister approves their bylaws and can put a government representative on their boards. They cannot borrow money.

• Taxpayers and service users

  • The government aims to slow or limit growth in public‑sector compensation to protect services and the budget.
  • There could be effects on recruiting and retention if pay caps make some roles less competitive.

• Timing

  • The law takes effect on a date set by the government (by proclamation).

Expenses#

Estimated annual cost: No publicly available information.

• The bill could add some administrative costs (committees, oversight, audits).
• It is designed to restrain compensation growth, which could lead to savings for the province and agencies.
• No formal fiscal estimate is publicly available.

Proponents' View#

• Helps protect public services by keeping compensation affordable and consistent across the public sector.
• Brings clearer oversight and transparency through binding policies, approved pay plans, and signed compliance reports.
• Prevents “overpayments” and makes it easier to correct them without lengthy disputes.
• Coordinates bargaining to avoid agencies competing against each other and driving up costs.
• Replaces and streamlines older rules on agency executive pay under one framework.

Opponents' View#

• Centralizes too much power with the Minister, reducing the autonomy of universities, health entities, and boards.
• Could harm recruitment and retention for managers and specialized professionals if pay caps are too tight.
• Limits legal recourse for employees who lose expected pay and declares reductions are not constructive dismissal.
• Clawing back funds from agencies may pressure program budgets and services.
• May politicize pay decisions and complicate or slow bargaining and hiring.