Tuesday's tentative public-sector wage deals turn conventional wisdom on its head.
Negotiators have signed an unprecedented five-year deal that covers one-quarter of the unionized public sector, the longest term ever.
They signed off well before the expiration of the three contracts involved, which rarely happens.
And they've embedded a "growth sharing" arrangement that makes the B.C. Government Employees' Union a partner of sorts in the "jobs and prosperity agenda" of the B.C. Liberals.
The union might be a longtime unofficial friend of the flailing New Democratic Party. But that's just politics. Business is business, and the union took care of business Tuesday to a remarkable degree.
The three component deals cover 51,000 employees, in direct government, community social services and community health. Subject to ratification, they'll get about 5.5 per cent in wage hikes, spread over five years.
It comes on top of another tentative deal on about the same terms with the Health Sciences Association last month, covering another 16,000 people.
Finance Minister Mike de Jong said: "To be able to point to tentative agreements with a quarter of unionized public sector workers this far in advance of the expiration of most of those agreements is really unprecedented."
But the kicker is the economic growth share deal. If B.C.'s GDP growth exceeds the formal estimate set by an economic forecast council, half the value will be matched as a wage hike to union members. For example, if growth beats the forecast by one percentage point, members get an extra half-point raise.
It would potentially average out to a few hundred dollars more a year.
It's the third different mandate the government has devised in as many contract rounds, and the most potentially lucrative. The first was "net zero," meaning raises had to come from concessions. The second was "co-operative gains," meaning raises had to come from savings anywhere in government, inside or outside of contracts.
This one locks in raises with no takebacks, with the potential for more. In six of the last 12 years it would have produced raises worth about three per cent overall.
So based on the track record, it's a 50-50 shot at a bonus, with no loss if they fall short. That's a good bet.
The length of the term is also a gamble. The last time public sector unions signed long-term deals, they got burned.
Liberals in 2006 offered a four-year deal to get through the 2010 Olympics. It included $1 billion worth of signing bonuses at the front-end and a $300-million reward for agreeing to four years.
That was to be payable at the back end, subject to B.C. posting a surplus budget of at least $150 million.
The surplus budget disappeared due to the economic meltdown, and so did $300 million worth of raises.
But union negotiators have overcome any trepidation based on that experience. They've signed on for an even longer ride. The contract will run the duration of this government and a year into the next.
De Jong was so keen to stress the "partnership" he sounded like a commune leader.
"We're all in this together."
With the HSA and BCGEU signing up months ahead of the traditional schedule, the deal is a how-to guide for the rest of the public sector.
And it makes you wonder about the Holy Grail of long-term contracts, the 10-year deal with B.C. teachers. Next to nobody expects it to come together.
But nobody expected the government to lock in a quarter of the public service for a half-decade four months ahead of schedule, either.
