Labour leaders and the Pallister government could be at an impasse on how to slay the province's $1 billion deficit.
Union officials met with Finance Minister Cameron Friesen Thursday morning.
Friesen said the government will introduce legislation in the spring to limit wage hikes, and he wants labour's input on the proposed law. He said 70 per cent of Manitoba's costs are salaries and benefits.
The Manitoba Federation of Labour said legislation is heavy handed and unions prefer to find solutions through the collective bargaining process. In addition, it questions the government's rush to trim wages when Premier Brian Pallister has pledged to balance the books over eight years.
Friesen also said he rejected calls from unions in the room to raise taxes to solve the fiscal mess.
Both sides agreed to form committees to discuss the next steps.
There appeared to be some common ground on the possibility of shrinking bargaining units in health care to save time and money.
Labour leaders said they're willing to explore that subject raised by Pallister during his State of the Province Speech in December.
