New Democrat MLAs will vote against what party leader Carole James calls an "obscene pay increase," but will take the additional money and donate it to charities in their ridings.

James said her members will take the raise of 29 per cent — boosting their salaries from $76,000 to $98,000 a year — and then donate the additional $22,000 to community organizations hurt by the Liberal government.

NDP Leader Carole James said her MLAs will accept the pay raise and donate it to community groups in their ridings.
(CBC)

She announced the compromise Thursday in an attempt to defuse what has become an explosive political issue for the NDP.

James said she expects the pay and pension bill to pass and become law.

"So if the Liberals vote yes, and this bill passes, we will as New Democrats donate back the pay increase. The difference between our current paycheque and the new paycheque with the pay increase, we will donate back to charity."

The Liberal caucus had approved the plan last week, and Liberal house leader Mike de Jong said there would be a free vote on the issue.

De Jong had given the MLAs the option of opting out of the plan, but he had cautioned that such a decision would be "permanent and irrevocable."

But James said her members won't play that game.

This way, the NDP MLAs will qualify for, and participate in, a new pension plan payable at age 65, she said.

"This isn't the perfect pension, but sadly it's the only one there that the government is giving us a choice on."
           
De Jong scoffed at James's decision.

"In 14 years, I have never seen such a botched example of leadership. Talk about leading the caucus into the valley of death time and time again."

Earlier, he had challenged MLAs who planned to vote against the pay and pension package "to put your money where your mouth is and say, 'I'm going to opt out of the benefits associated with it.'"

The bill before the house will increase cabinet ministers' pay from $115,000 to $145,000 a year, and the premier will get a raise of $65,000 to $188,000 a year.