Feds to pay $1.3B in severance for employed civil servants

Jacques Bourbeau, Rebecca Lindell, Global News: Thursday, June 23, 2011 5:25 PM

 

OTTAWA — Thousands of federal public servants have been given the green light to cash in plump severance payouts that could total $1.3 billion, despite the fact none of them will actually be losing their jobs, Global National has learned. The public servants are being paid out as part of a deal that ends a system that gives bureaucrats severance packages when they retire or voluntarily resign.  Generally, private sector employees only get severance pay if they are laid off or fired without cause, but civil servants are entitled to severance even if their departure is planned.  “It’s absolutely absurd,” says Catherine Swift, the CEO of the Canadian Federation of Independent Business. “You would never find severance if you haven’t had an unexpected job interruption in the private sector.”  The Harper government is trying to abolish the practice. PSAC – the largest public service union – signed a contract this year agreeing to move to the private sector’s definition of severance payouts.  In exchange, the federal government has agreed to buy out the severance packages immediately or at a later date.
The public service severance system is meant to compensate for shorter careers and lower pay in the federal public service, said Claude Poirier, president of the Canadian Association of Professional Employees.  Still he admits the policy might be hard to justify to the average taxpayer.“It doesn’t make sense to continue to work and get your severance right now,” he said, adding that it is going to cost the Canadian public “a fortune” to eliminate.

The government has already set aside $1.3 billion in tax dollars for the payout to PSAC members who have signed a deal ending the severance. The employees have until October to decide when they want to take the payout.  And that could be just the beginning. There are several other unions that the government will have to cut deals with to end the generous severance provisions. “This is just another example of how governments over the years have betrayed ordinary Canadians by paying and giving excessive benefits to government workers and now the bill is coming due and it’s not a pretty sight,” Swift says. (more)

B.C. civil servants reap $2.4M severance

CBC News  Posted: Apr 28, 2011 4:08 PM PT

The B.C. government is paying more than $2.4 million in severance to a handful of ex-public servants let go when Premier Christy Clark took over the reins of government from Gordon Campbell.  As many new heads of government do, Clark dismissed a number of veteran public servants and political staff who had served the previous administration.  The B.C. finance ministry released a breakdown of severance payments in response to a request from CBC News.  At the top of the list is Allan Seckel, who was deputy minister to the premier and head of the provincial public service. His payout will total $550,000.  Martyn Brown, who was Campbell's chief of staff, moved to a deputy minister's job in the past year, but he's also due severance of $416,000.  Other big payouts went to Leslie du Toit, deputy minister of children and family development, who gets $337,000, and Ron Norman, who headed the Public Affiars Bureau, who receives $324,000.
Other severance recipients include:

• Lara Dauphinee (Campbell's Deputy Chief of Staff) - $193,000.
• Geoff Hanman - $118,000 Paul Taylor (Premier's Chief of Staff after Brown) - $114,000.
• Dale Steeves (Premier's Communications Director) - $108,000.
• Michael Harrison (ministerial assistant) - $76,000.
• June Phillips - $73,000.
• Christine Willows - $51,000.
• Kathy Armstrong - $34,000.
• Richard Davis - $33,000.

The total for the severance packages is $2,427,000.

Ex-fire chief’s money payout revealed

By Jennifer Smith - Kelowna Capital News Published: August 10, 2010 6:00 PM

Kelowna’s former fire chief leaves his post with an 18 month severance package—or a month’s pay for every year he was employed with the city’s fire department. For 18 years worth of service, the chief will receive 18 months of compensation, or roughly $210,000 in salary and benefits according to the documents provided. The severance agreement stipulates the former fire chief’s legal expenses, some $2,500, will also be paid by the city and the car leased for him as a member of city management will be paid for through May 2011, a year after he left his post.

The municipality did not release the severance amount when Blanleil’s departure was announced earlier this year, but the Capital News was able to obtain at least a portion of the information under the Freedom of Information Act on Tuesday afternoon. In a surprise move this spring, René Blanleil stepped down from his position as the city’s top fire fighter saying he was ready to move on to new opportunities. “It’s not performance related,” Charlene Covington, City of Kelowna director of human resources, told media at the time in absence of an interview from the chief. “The chief completed the strategic plan, which was a major initiative on his plate, and we all felt that it was an appropriate time for a change,” she said. But with only four years under his belt in a position fire fighter’s typically spend a career aiming to achieve, his decision to leave generated plenty of questions. Online forums characterized the department as fraught with problems, placing the blame on the chief. Included in the FOI information package is a reference letter Blanleil can use for future employment, but the reasons for his departure, contained in a document known as The Cuff Report, remain largely a mystery as privacy regulations still prevent release of any meat in the document.

The report, which Covington characterized as a review of the fire department’s administrative affairs when Blanleil left in May, indicates the chief was seen as “generally personable” and “an able representative of the department on the public stage” with “good public relations awareness” and an ability to lead fundraising ventures. “He is obviously sincere in his desire to lead the department effectively and to ensure that it is held in high esteem on the street,” it states. Even with masses of blacked-out text, however, the report does indicate, the parting of ways was likely not a simple decision to move on. It does clearly state the contractor hired was asked to conduct a review of an unnamed “issue.” The analysis included more than a page of reasons why this issue had developed—although the marked out sections do not reveal what the issue was. The fire chief was also to be given access to career counselling as part of the severance agreement.

Winning numbers

Public Eye: May 20, 2010
So what has Vic Poleschuk been up to since he was dismissed as president and chief executive officer of British Columbia Lottery Corp. on June 1, 2007 and awarded a $603,362.70 severance package? Well, according to a Great Canadian Gaming Corp. news release distributed today, he's been working as a consultant to the casino company. And now he's been appointed the firm's senior operations vice-president - east. Fascinating, eh?

Chief Electrician severance package cost taxpayers over $180,000

City Caucus.com:

The City of Vancouver originally said Mr. Ark Tsisserev had retired. Then word came out that he was the victim of restructuring due to budget cutbacks. Now we learn he has received a massive severance package which breaks down as follows:

• $153,102.50 for 15 months of base salary
• $12,243.04 in lieu of benefits
• $12,000 in lieu of pension contributions and service during the notice period
• $5,500 to provide the services of Right Management, a career transition consulting firm for a three month period

The City of Vancouver also agreed to provide Tsisserev with "a positive letter of reference signed by David McLellan". The full severance package and rationale for Tsisserev's departure can be viewed by clicking here.

A completely new environment

By Sean Holman Public Eye Online: Sept 29:

When last we reported on children and family development chief operating officer Donna Knox, she was leaving the ministry after just eight months on the job. At the time, Ms. Knox - a respected senior bureaucrat - said she felt, "my experience and skill may be better utilized in a completely new environment" somewhere in the civil service. But that was two years ago. So why then does public accounts state Ms. Knox received payments totaling $145,426 in fiscal 2008/09 as the ministry's chief operating officer. Well, our understanding is those monies are for unused leave and 11 months worth of severance pay. Yes, that's right - severance pay.

NORD hands out $79,539 severance

Richard Rolke - Vernon Morning Star Published: September 03, 2009 6:00 PM

More details are known about a major shake-up at the North Okanagan Regional District office this summer. The Morning Star has learned through a Freedom of Information request that Jody Anderson has been paid $79,539 in severance. Correspondence from NORD also indicates that Anderson, who was director of corporate services, was let go without notice in July.“It’s an in-camera matter and I can’t say anything,” said Herman Halvorson, board chairman.“It (severance) was agreed upon and that’s it.”

NORD staff were informed July 9 that Anderson was no longer an employee of the regional district.Anderson was hired as a summer student with NORD in 1975, and she became full-time in 1977. She was appointed corporate officer two years ago.Prior to being terminated, Anderson was placed on leave in June.The $79,539 in severance is prior to statutory deductions like income tax and CPP, being removed, so the actual figure going to Anderson will be less. Severance would have been determined based partly on Anderson’s duties and years of service. “It’s in accordance with an employment agreement,” said Greg Betts, NORD administrator.

Anderson would not comment on the severance package, but in a previous interview, she expressed concerns about how the regional district handled her departure.“I was dismissed without cause and I didn’t do anything wrong,” said Anderson in July.“This caught me off guard. It appears that I don’t fit into the administration reorganization plan.”

NORD Shakeup

Written by Glen Morrison Friday, 10 July 2009 10:33 107.5 KISSFM

There's a senior level shakeup at NORD. Director of Corporate Services Jody Anderson has been terminated with no public explanation. She's been a NORD employee for over 32 years and says she's done nothing wrong, but apparently doesn't fit the administration reorganization plan. Severance details have yet to be worked out. NORD administrator Greg Betts won't discuss it, saying personnel matters are confidential.

Settlement reached with Forai

By RICHARD ROLKE Morning Star Staff May 04 2007 http://www.vernonmorningstar.com/

The North Okanagan Regional District has come to financial terms with its former economic development manager. The district has signed a settlement agreement with Dave Forai, who was Greater Vernon economic development manager until he left the position in February.
“That issue has been finalized,” said Brian Reardon, NORD administrator. Details of the agreement were not available at press time. Forai, who could not be reached for comment, had been employed by the regional district since 2001. At the time of his departure, NORD stated Forai was officially on medical leave. However, some politicians indicated that they weren’t aware of the departure being medical related.

Jerry Oglow, NORD chairman, is pleased the matter has been resolved. “He has left the organization,” he said of Forai. “I don’t know the details of the contract but it was honoured. Brian (Reardon) gave him a reference letter as part of the agreement.” With a settlement now in place with Forai, the regional district is looking to fill the vacant economic development position in Greater Vernon. “We hope to have someone in short order,” said Reardon. A leading candidate has been identified and contract negotiations are underway. About 28 people applied for the position. “There were four solid individuals that we interviewed,” said Reardon.
Until a new manager is hired, existing Greater Vernon Services Committee staff are handling economic development issues. A consultant was also contracted to oversee some specific economic development projects.