Allowance freeze
Yellowknife overlooked for living-allowance increases

Jeff Colbourne
Northern News Services

NNSL (May 15/98) - GNWT employees across the North will see an increase in their Northern living allowances in a proposed government collective agreement -- except for workers in Yellowknife and Rae-Edzo.

The discrepancy has left Yellowknife MLAs Seamus Henry and Roy Erasmus up in arms, especially since it is cheaper to live in such communities as Hay River or Fort Providence.

"Employees in Hay River are receiving an increase and those in the capital aren't," said Henry. "It just doesn't make sense."

The two MLAs said that according to the government's own statistics, the cost of a nutritional basket in Hay River is $155 compared with $163 in Yellowknife.

Hay River employees get about $1,000 more a year in living allowances than Yellowknife employees.

"The reason we brought it up is several people have talked to us about it. Yellowknife is used as a base even though it's cheaper to live in Hay River," said Erasmus.

"For a community that's bragging that it's the cheapest place to live, I think that's the one that should be the base community. They shouldn't be receiving an increase. We should be receiving an increase."

Besides having the cheapest cost of living, Hay River is also closer to the South and has easier access to goods and services than Yellowknife.

"We do get isolated here periodically when that ferry shuts down and ice crossing is closed. We're totally isolated and things have to be flown in. Hay River is not in that type of situation," Erasmus added.

Henry said he wants to see an increase in allowances for Yellowknife employees.

It is proposed that Fort Providence, for example, get a 98 per cent living allowance increase from $2,358 to $4,674. "Can you tell me the cost of living has gone up that much?" Henry asked.

Both Finance Minister John Todd and Union of Northern Workers president Jackie Simpson told Henry and Erasmus that they will look into the matter.

Two years ago, the GNWT removed travel allowances to discourage people from leaving the North for vacations. Northern living allowances were implemented in their place.

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