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Olds College compensation request rejected

Tiered compensation levels reduces the ability of colleges and polytechnics to compete, says Olds College president
mvt Stuart Cullum-3
Olds College president Stuart Cullum. File photo/MVP Staff

MOUNTAIN VIEW COUNTY - A proposal by Olds College to change provincial legislation regarding tiered compensation levels for leadership positions “would not align with the original intent of the regulation,” said Alberta Finance Minister Travis Toews.

Olds College and other agricultural post-secondary schools have called on the government to eliminate tiering into levels of post-secondaries with the Reform of Agencies, Boards and Commissions Compensation Regulation (RABCCA) regulation or amend it to combine position Level 1 and 2 post-secondary institutions.

In 2021 the government implemented performance-based funding for leadership at post-secondary institutions, which in 2023 will include an administrative expense metric to contain executive and senior leadership compensation.

Under the five-level grid, Olds College is Level 1, the lowest of five levels. As a Level 1 designation the college will be forced to compensate its leaders, such as deans and vice-presidents, less than what is provided for at higher-tiered institutions.

The change may have the consequence of transforming Olds College from being a destination institution into a stepping-stone institution because it would no longer be able to offer compensation to leaders in line with some other post-secondary schools, Olds College president Stuart Cullum told Mountain View County council.

The creation of tiered compensation levels reduces the ability of colleges and polytechnics to compete and a tiered system creates an explicit hierarchy of post-secondary institutions, he said. 

“The five-tier system under RABCCA highly stratifies post secondaries based on enrolment, based on urban and rural, based on other perceptions of complexity, and that’s where I think we have a significant challenge,” he said.

The district’s Muncipal Area Partnership (MAP), which includes Mountain View County, sent a letter to the provincial government in February in support of Olds College’s calls for changes to the RABCCA.

The letter called on the government to “consider repealing post-secondary inclusion in RABCCA, or making amendments to RABCCA to ensure Olds College can continue its important role of advancing the agriculture and agri-food industry within our region and throughout the province.”

“We are deeply concerned that the unintended consequence of RABCCA will transform Olds College from being a destination institution that is developing into a world leader in agricultural education, training and applied research into a steppingstone institution for talent, because it is no longer allowed to compensate its leadership in line with other Alberta post-secondary institutions.”

In a letter responding to the MAP letter, Minister Toews said the intent of the RABCCA regulation is to “stabilize and create executive compensation parity and cost-containment” across post-secondary institutions.

“Setting parameters for total compensation, including salaries and benefits, for designated executives at specific agencies, boards, and commissions is key in establishing consistency and transparency,” said Toews. 

“For this reason, repealing post-secondary inclusion in the RABCCA or making amendments to RABCCA to exclude Olds College would not align with the original intent of the regulation.”

The future of RABCCA and its associated regulations is currently under review, he said.

“Additional information will be provided to Olds College as soon as it is available,” he said.

The Toews letter was sent to MAP chair and Town of Olds Mayor Judy Dahl, Mountain View County Reeve Angela Aalbers, local mayors and others. It was received for information by MVC council on April 13.

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