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Shortly after the contracts were signed, the price of oil plunged the province into a deep recession that continues today, with Calgary’s unemployment rate hitting a 23-year high in October.

As unionized city employees ring in the new year with a four per cent raise (which follows a 3.5 per cent hike in 2016, 3.2 per cent jump in 2015 and 1.8 per cent increase in 2014), Calgary’s city council are in store for a 2.49 per cent pay cut. The salary of elected officials is automatically adjusted based on Alberta average weekly earnings reports by Statistics Canada.

Photo by Ted Rhodes / Calgary Herald

Sutherland said employee pay is the city’s number one expense and when union leaders enter negotiations, set to start in the fall of 2017, they need to be realistic.

“This is a different environment and they need to share in the cost savings,” he said.

Ward 10 Coun. Andre Chabot agreed.

“I would expect (the unions) will be sympathetic to the challenges most Calgarians are facing and hopefully they’ll be willing to be flexible in our decisions and negotiations, recognizing of course that we’re in tough economic times,” he said.

At the Dec. 19 city council meeting, mayor Naheed Nenshi said the upcoming labour settlements won’t be enjoyable.

“It’s clear that our colleagues across the city understand the need to help shoulder the burden with all Calgarians,” he said in response to a question from Coun. Richard Pootmans.

“Certainly, though, it’s not going to be a fun labour settlement. But I think it’ll be a fair one and it’ll be the right one for the citizens right now.”