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Teacher strikes should never happen in Alberta

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From the Fraser Institute

By Michael Zwaagstra

In Manitoba, teachers voluntarily gave up the right to strike in the 1950s in exchange for binding arbitration. There’s no evidence this decision harmed Manitoba’s education system. In fact, salaries for Manitoba teachers are currently among the highest in the country.

Alberta students are back in school. But for how long?

That’s an open question, because Alberta teachers are currently in a legal strike position. In June, almost 95 per cent of public school teachers voted to authorize strike action. With talks breaking off recently between the Teachers’ Employer Bargaining Association (which represents school boards in the province) and the Alberta Teachers’ Association (which represents teachers in all Alberta public, separate and francophone schools), prospects for a negotiated settlement don’t look good.

The dispute between the two sides is mainly about money. According to the union, the Alberta government is woefully underfunding public education, teacher salaries are too low, classes are too big, and schools lack basic education supplies. The government, of course, disputes these claims and argues that school boards receive more than enough money to educate all students.

Which side is right?

It depends on how you interpret the numbers. While per-student spending in Alberta is lower than the Canadian average, student academic achievement in math, science and reading is well above the Canadian average. There’s no reason to assume that spending more money will automatically lead to better academic results.

Even so, neither side is likely to budge. That’s unfortunate because the people most impacted by a potential strike (students and parents) are without a voice in this dispute. Regardless of which side has the better case, students and their parents will suffer the most during a strike.

This is why Alberta public school teachers shouldn’t have the right to strike. Instead, unresolved labour disputes should automatically go to binding arbitration, where a neutral third party listens to both sides make their respective cases, and then draws up a new collective agreement. Throughout this process students would remain in class and their learning would continue.

Binding arbitration is already a widely accepted way to settle labour disputes. For example, essential workers such as police officers and firefighters regularly use binding arbitration to settle their labour disputes. Given the essential nature of educating students, it’s reasonable to add teachers to this list.

Significantly, there’s precedent for moving in this direction. In Manitoba, teachers voluntarily gave up the right to strike in the 1950s in exchange for binding arbitration. There’s no evidence this decision harmed Manitoba’s education system. In fact, salaries for Manitoba teachers are currently among the highest in the country. Instead of walking a picket line trying to pressure the provincial government to give in to their demands, Manitoba teachers—and students—remain in the classroom until binding arbitration produces a settlement.

In addition, binding arbitration can be used to address more than salary disputes. For example, after a bitter year-long series of intermittent teacher strikes and work-to-rule action, the Saskatchewan government and the Saskatchewan Teachers’ Federation (STF) agreed earlier this year to use binding arbitration to resolve the thorny issue of “classroom complexity”—essentially, how to support students with complex needs. The STF was happy when the Arbitration Board’s final decision placed specific requirements on the province to address the classroom complexity issue.

Imagine how much better it would have been if Saskatchewan students and parents hadn’t suffered a year of labour uncertainty prior to this decision. And of course, teachers lost pay because of the intermittent strikes. Had their labour dispute gone to binding arbitration right away, Saskatchewan teachers would have received reasonable salary increases and a framework for addressing classroom complexity, all without threatening to strike.

Back in Alberta, parents are scrambling to make contingency plans for how they will look after their children if public schools close because of a teacher strike. Alberta has an opportunity to learn from what has happened elsewhere. Students and parents deserve the certainty of knowing that schools will remain open. Teacher strikes should never happen in Alberta. The Smith government should classify teachers as an essential service, and unresolved labour issues should be sent to binding arbitration.

Michael Zwaagstra is a senior fellow with the Fraser Institute.

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Alberta

Prominent conservative lawyer in Canada disbarred in ‘vindictive abuse of process’

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Justice Centre for Constitutional Freedoms

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Alberta

Smith government should create stricter rules for Heritage Fund to ensure annual deposits

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From the Fraser Institute

By Tegan Hill

Earlier this year, the Smith government released its plan to grow the Heritage Fund—Alberta’s long-term resource revenue (e.g. oil and gas royalties) savings fund—to $250 billion or more by 2050. But due to the government’s own rules, which are easily broken, absent a change in approach, that promise will be hard to keep.

For example, according to the government’s current rules, if it records a budget surplus in any given year, it must use at least 50 per cent of that surplus to repay debt or invest in the Heritage Fund. This commitment, paired with a plan to reinvest any Heritage Fund investment returns back into the fund, is the main way the government plans to build up the fund.

Over the past four years, the Smith government has recorded budget surpluses, fuelled by relatively high resource revenue, and deposited $753 million in the Heritage Fund in 2023 and $2.0 billion in 2024.

But Alberta’s fiscal fortunes have changed. The Smith government now projects budget deficits from 2025/26 to 2027/28. That means that, according to current rules, the government is no longer required to deposit money into the Heritage Fund, even though it’s just as important to continue deposits during times of deficits. And while the government must still reinvest investment returns into the fund during periods of deficits, it could easily break this rule.

That’s the problem with relatively weak rules—they either don’t apply or are ignored when times get tough. Indeed, in 1976/77 when the Lougheed government created the Heritage Fund, it required that 30 per cent of resource revenue be deposited in the fund each year. If the government had stuck to this rule, it could have grown a sizeable Heritage Fund over time. But the 30 per cent contribution rate rule was “statutory,” which meant that the government could unilaterally change the rule when times got tough, and it did.

Following an oil price collapse in 1982/83, the government reduced Heritage Fund contributions to 15 per cent of resource revenue. Following a second oil price collapse in 1986/87, and budget deficits, the government ended resource revenue contributions entirely. Consequently, the government has deposited less than four per cent of Alberta’s total resource revenue in the Heritage Fund over its lifetime. And despite the fund existing for more than 50 years, it’s worth about $25 billion today—a far cry from the Smith government’s $250 billion goal.

Fortunately, there’s a way to ensure Premier Smith’s rules for the fund remain effective over time—make them constitutional, not statutory.

To create constitutional rules, the Alberta government would first seek consent from Albertans through a referendum—a procedure that in itself provides value by educating Albertans on the benefits of stricter rules for the Heritage Fund. Assuming the proposal receives the necessary level of public support, the Alberta government would then pass legislation to recognize the rules and present this legislation to the federal House of Commons and Senate for recognition, resulting in a change pertaining to Alberta in Canada’s Constitution.

As a result, if the Smith government, or any future Alberta government, wanted to reverse the rules or ignore their requirements, it would need to reverse each step in this process—seek approval from Albertans via a referendum, pass provincial legislation, and ask the federal government to approve similar legislation. In other words, it would be much more work to change or ignore Heritage Fund rules—unlike today, when the provincial government can unilaterally change the rules without the approval of Albertans or support from the federal government.

The Smith government has promised to grow the Heritage Fund, which is a worthy objective. But it must stick to its commitment—even when times are tough. Put simply, to grow the Heritage Fund over the long-term, Albertans needs constitutional rules.

Tegan Hill

Director, Alberta Policy, Fraser Institute
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