New Westminster is the first Lower Mainland municipality to cut a deal with CUPE, says the Royal City Record:

The four-year agreement covers the period from Jan. 1, 2012 to Dec. 31, 2015. It provides for a wage increase of 6.75 per cent over that time (1.25 per cent in 2012, 1.75 per cent in 2013, 1.75 per cent in 2014 and two per cent in 2015).

That’s right around the rate of inflation, which wouldn't be terrible except this settlement ignores two important facts: first, CUPE workers just finished a 5 year, 17.5% contract, which was way beyond inflation and gave municipal workers big raises during a period of severe economic recession—burdening taxpayers at our lowest point.

Second, New West gave away its bargaining power by refusing to follow the provincial government’s example and pushing for two years of net zero.

Certainly the union was expecting worse—look at this quote from the CUPE “business agent”: Although the agreement caps extended health and dental benefits at existing levels, Habib said that's not a concession.

"That is a win," he said, explaining that those types of benefits are being clawed back in many other places. 

As I wrote last December:

Back in 2007, when the last round of CUPE contracts was being negotiated, municipalities followed the provincial government’s lead and paid dearly to ensure labour peace through the Olympics. Back then, the Province was handing out big signing bonuses and nice raises; the pressure to ensure Olympic peace meant most municipalities ended up with a 17.5 per cent pay increase over five years. Vancouver workers got a $1,000 signing bonus on top of that raise.

The economy was still booming in 2007, so not much was made of the huge pay increases. But when the global economy tanked and B.C. was dragged into the muck with it, the Province learned its lesson and went to net zero.

Despite following the provincial government’s mandate in 2007, municipalities don’t seem interested in net zero.

The bar has been set now, and you can bet CUPE will be looking to whipsaw—getting more out of the next city and the one after that. As always, it will be taxpayers who suffer.