The Blue Mountains council is considering a new policy that would break the link between annual cost of living wage increases for non-union employees and the consumer price index.
At its committee of the whole meeting on Jan. 9, council approved a recommended policy change from CAO Shawn Everitt that would see cost of living adjustments for non-unionized staff set at a range between one and a half and three per cent.
The policy was approved at committee of the whole in a 7-0 vote and must come to council for final approval on Jan. 23.
In the report, Everitt said the previous policy tied annual staff cost of living increases to the September consumer price index numbers. This year, with inflation running high, that equated to a 6.9 per cent cost of living salary increase.
The CAO said staff were not comfortable bringing forward a proposed 2023 budget with that level of an increase, but did not have any leeway as the town’s policy tied cost of living increases to the price index.
The CAO also said over the past two years the policy has not been adhered to during the budget process.
“Since the establishment of this policy and during the 2021 and 2022 budget processes, the adherence to the approved policy has not been consistent. The lack of adherence to the policy as written does create budgeting confusion along with frustration with the policy not being consistently followed,” Everitt said.
For example in 2022 the September 2021 CPI number was 4.4 per cent, but the cost of living increase approved in the budget was 1.62 per cent.
The new policy will also see the town use the July price index number, as Everitt noted that budget preparations for town staff begin earlier than September. Under the revised policy, 1.5 per cent is the minimum cost of living increase, while three per cent is the maximum.
