By Jason Fekete, Postmedia NewsJune 7, 2012
OTTAWA - The federal government paid $1.2 billion in voluntary
severance last fiscal year to 91,613 public servants who either remain
in their jobs, retired or quit on their own - a perk unheard of to most
Canadian taxpayers who are footing the bill. Business groups and
spending watchdogs say the voluntary payouts are both "staggering" and
"outrageous," considering Canadians in the private sector are generally
only paid severance when they lose their job - not if they continue
working or leave on their own. All told, taxpayers are on the
hook for more than $1.5 billion in regular and voluntary severance to
102,589 public servants in 2011-12, according to new federal numbers
obtained by Postmedia News. The total severance payout includes
the $1.2 billion to more than 90,000 employees who voluntarily requested
the payments, as well as additional cash for those who received regular
severance benefits (payment upon termination of employment regardless
of circumstances), according to Public Works and Government Services,
the department responsible for the payments. The numbers include
payments to federal departments, agencies and most Crown corporations,
but don't factor in large, independent corporations like Canada Post and
Bank of Canada, which pay their employees separately. The
government also is projecting it will spend at least another $850
million in the current 2012-13 fiscal year on accumulated severance
payouts (including for resignation and retirement) owed to federal employees as per collective agreements signed by successive governments
over several years. The Conservative government, as of October
2010, halted the accumulation of severance benefits for resignations and
retirements, but is renegotiating a number of collective agreements
with public sector unions to cover what is already owed. (more)
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