THE CANADIAN PRESS

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RED DEER, Alta. - The board of directors of Alberta Health Services has voted to freeze the wages of managers and non-union staff for two years, prompting an outcry from the province's largest union.

Guy Smith, president of the Alberta Union of Provincial Employees, said Thursday they do not intend to negotiate a wage freeze when their collective agreement calls for annual increases.

Approximately 8,000 management and non-union staff will be affected by the decision, which would take effect in April.

It's expected to save roughly $12 million next year.

At a meeting in Red Deer, Alta., the board authorized administration to begin similar discussions with unions whose agreements extend beyond March 31, 2010.

"The Supreme Court of Canada made it clear in 2005 that employers, including provincial governments and their agencies, cannot tear up contracts with unions because the terms they have negotiated are no longer convenient," said Smith.

Two of the union's agreements, which include nearly 13,000 auxiliary nursing care staff and 26,000 general support workers, extend beyond 2010 with scheduled pay increases.

Smith said the province should not freeze wages or make cuts "on the backs of front-line public employees."

Stephen Duckett, chief executive of Alberta Health Services, called the wage freeze for managers and non-union staff an "extraordinary measure for an extraordinary time."

"The premier, as you know, announced that he was holding steady management compensation in the public sector. So what I'll be doing is introducing a similar arrangement in Alberta Health Services," said Duckett after the board meeting.

Premier Ed Stelmach said earlier this month he was hearing support for his goal to freeze the wages of public sector workers when they negotiate their next contracts.

The push is part of the province's plan to help eliminate a record $7-billion deficit in three years.

A spokesman for the premier has also said that pay increases in the public sector could force the government to cut jobs.