Prior to receiving the final number for the Cost of Labour Adjustment (COLA) increase this year, we reached out to the Minister of Transportation and Infrastructure (MOTI), Rob Fleming, to discuss the impacts that skyrocketing prices are having on members everywhere in the province, and the concerns about falling behind. 

With 2023's adjustment now finalized, we are writing to express our dissatisfaction with the COLA increase and to let you know we will continue to advocate that government review the labour compensation for this year and increase the amount. 

Here are the increases: 

In all service areas, except for Service Area 20, the COLA increase of 3.45% will be directly applied to wages on the anniversary date of the collective agreement. 

In Service Area 20, the increase applies as follows: 

The COLA gap: 

While COLA increases have been greater than the rate of inflation as measured against the consumer price index (CPI) most years since 2005, this has not been the case over the last two years (and in particular this year). See the graph comparing COLA increases with the Canadian and B.C. CPI below: 

*CPI Canada and BC values are calculated based on Statistics Canada Table 18-10-0005-01 (formerly CANSIM 326-0021) 

This is a significant issue and a priority in all our discussions with the ministry and the BC Road Builders. At the end of the day, this is about fairness and the recruitment and retention of professional highway maintenance workers. 

Checking the numbers: 

When we shared the 2022 COLA increase, we received a lot of requests and recommendations to provide more details about the ministry's process around calculating values. This year, a BCGEU actuary reviewed all of MOTI's calculations (COLA, fuel and residual) to ensure accuracy of the formulations received by contractors in the highways maintenance sector since 2017. 

This review confirmed the data source, the formula accuracy and the calculation itself from 2017 to 2022 for Price Adjustment Factor, and the result is satisfying. In other words, this year's COLA is based on the industrial wage rates from 2022 and 2021 combined, and reflects the formula agreed to in our collective agreements. 

Next steps: 

The data and statistics to back up our claims for a higher increase this year are now with government and they have advised us they are reviewing it. This doesn't come with any guarantees and it is likely to take several months. 

We will update you on this matter if anything develops and, in any event, you can expect to hear something following our Component meeting in the first week of October, if not sooner. 

In solidarity, 

Rory Smith 
VP Operational Services, Component 10

UWU/MoveUP