RCMP contract backpay leave B.C. municipalities with bill of up to $145M

A number of British Columbia municipalities that rely on the RCMP for their policing are bracing for a massive hit to their budgets due to a recent contract the force negotiated with the federal government.

Last April, the RCMP’s 20,000 members signed a collective agreement with pay increases retroactive to 2017.

That deal could leave B.C. municipalities on the hook for as much as $145 million, costs the federal government says it won’t absorb.

Read more: B.C. cities on hook for millions in back pay to RCMP members warn of major budget impacts

Craig Hodge, a Coquitlam city councillor and executive on the Union of B.C. Municipalities, said cities are supportive of raises for the Mounties, but that many had not expected the increased costs to be as high as they are.

“This is a big deal … we weren’t anticipating what the size of that raise was going to be, partially because we weren’t at the table during the negotiations,” he said.

“So when we found out what the amount of the retro cheque was going to be, it was more than we were able to put aside.”

Hodge said municipalities across the country had hoped Ottawa would absorb some of the costs, but have been told the only help they will get is a two-year window to come up with the money.

What’s more, the new contract’s term expires Friday, meaning new negotiations will be needed to agree to the next term, and cities are now worried they’ll find themselves in a similar situation when it is signed.

Geoff Stewart, deputy mayor of Colchester, N.S., and second-vice-president of the Federation of Canadian Municipalities, said municipal governments had been told to expect an increase in the ballpark of six to seven per cent, but instead are facing an increase of 23.7 per cent.

Read more: All-party committee calls on B.C. to replace RCMP with provincial police force

Municipalities aren’t legally allowed to run deficits, so they’ll now have to decide whether to cut services or raise property taxes, he said.

“We want to see the federal government absorb the retroactive cost of the RCMP. We would also like to see the Federation of Canadian Municipalities have a voice at the table moving forward,” he said.

“If we’re going to pay the bill for policing and policing costs continue to rise and municipalities absorb those costs, moving forward, if we know what we’re dealing with, we have the opportunity to deal with it.”

Surrey Police Service reaches first contract with officers making them among the highest paid in country

The collective agreement includes an annual salary bump of about $20,000 for constables and $25,000 for sergeants.

Trending Now

While the RCMP is a federal force, its services are provided via contract to individual municipalities, with costs to cities varying depending on a community’s size and the remaining portion split between federal and provincial governments.

B.C.’s 2020 report on policing resources found 65 municipalities contract the RCMP, totalling over 4,000 members. Provincial RCMP services have an additional 2,600 members.

In a statement, B.C.’s Ministry of Public Safety and Solicitor General said it had provided an estimate of the potential pay increase for RCMP members in the provinces’ and municipalities’ annual Multi-Year Financial plans “including a recommendation to set aside funds to respond to the eventual settling of a unionized contract for RCMP members.”

“The Province and the RCMP has recommended to municipalities at various forums such as the Local Government Contract Management Committee to ensure funding was set aside,” it said.

“The Province has supported UBCM in its advocacy to the federal government on behalf of local governments to cover the retroactive costs of the collective agreement.”

While some municipalities have been left scrambling, others say they are prepared to handle the increased costs.

Surrey Mayor Brenda Locke said it will be responsible for an increase of just over $30 million, money that it has already earmarked.

Read more: RCMP costs, retroactive pay overwhelming for some rural municipalities: FCM

“We have known about that number for some time, for over three years. We were told some time ago to make sure we’re putting money away for this collective agreement happening for RCMP,” she said.

“We knew we had this bill coming, Surrey had been putting money away for that bill, this is no shock and awe for us.”

But Hodge said Coquitlam and many other B.C. municipalities aren’t in the same situation.

With their 2023 budgets already locked in, he said, that will leave them with difficult decisions next year.

“Policing represents anywhere from 20 to 40 per cent of the municipal budget. It’s a big-ticket item,” he said.

“This comes at a time when municipalities are struggling with budgets. We are hearing cases right across the province where some of the increases this year are going to be the largest in several years.”