N.W.T. MLAs lift salary freeze as government claims it can't afford raises for unionized employees

As the Northwest Territories government tells its largest group of unionizedemployees it can't afford araise in the next two years, MLAs lifted a two-year wage freeze on their own salaries.

MLAs on the Board of Management made the decision at a meeting Wednesday evening that was closed to the public.

"All members agreed to a two-year freeze of their salaries [in 2016] and we did," said Yellowknife North MLA Cory Vanthuyne, whosits on the board.

"At the end of this fiscal year, [consumer price index] will be applied to our remaining two years in office," he said.

The board is made up of Speaker Jackson Lafferty, Frederick Blake Jr., Finance Minister Robert C. McLeod, Infrastructure Minister Wally Schumann and Vanthuyne.

"What was normal is what we're going back to," Vanthuyne said. "It was not normal to freeze our salaries like we did. We did that as it related to a motion on the floor of the House. It was for a two-year period and that's coming to an end."

The 18th Legislative Assembly unanimously passed the wage-freeze bill in March 2016. It was largely seen as a symbolic move designed to show solidarity with workers during a slumping economy.

• N.W.T. MLAs pass bill to freeze their own salaries for 2 years

The decision to lift the freeze comes while the government continues negotiations with the Union of Northern Workers.

The government's latest offer to employees includes no wage increases in the first two years and a one-per-cent raise in the third and fourth years, according to documents submitted to the union.

Review of compensation

A wide-ranging review of compensation and benefits for MLAs is also about to begin. The last comprehensive review of compensation and benefits for MLAs happened in 2013.

The government is looking for three independent commissioners who will review how MLAs are paid for their work.

"This is expected, it's what we do once a term, we have to get it underway," Vanthuyne said, adding he feels the current compensation for MLAs is fair.

"I would say that it is probably fair, but like everybody else there should probably be an opportunity where you're constantly taking it under review."

MLAs are currently making $103,851 per year in base salary, with a northern allowance and other benefits added on. MLAs who take on additional roles, such as Speaker, premier or cabinet minister receive additional funds on top of the base salary.

The salary review is expected to take 10 months to complete.