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HOLLAND
COLLEGE • March 5, 2002
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servants asked to retire voluntarily by government Jennifer Platts jennplatts@hotmail.com P.E.I.'s mounting deficit has prompted the government to allow civil servants to opt for early retirement. Premier Pat Binns says the new plan could see as many as 200 people over the age of 53 leaving their jobs by March 31. Another 250 civil servants are given the option to work fewer hours, with no loss in pension contributions or take a two-year absence leave with employment benefits intact. The absentee's would also receive six months pay as though they were still working, said Binns. The plan is mandatory in order to avoid passing out pink slips to over 2,100 civil serv ants, added Binns. The buyouts are expected to save Island taxpayers between 3.5 to 3.7 million. Most of the savings are eaten away by the pension buyouts, expected to cost $2 million, depending on how many workers use the program, but Binns said the money was already there for pensions. "The money for the pensions has been set aside over the years and is already accounted for." Workers have until March 15 to indicate their intentions. The areas of government most affected by the cuts won't be known until after the deadline date, but the program is open to all government workers. "We don't know who will leave," said Binns. "But we know a lot plan to." A CUPE representative, who asked not to be identified, says there are 150 civil servants inquiring about the program so far. "There is a consideration of advantages and disadvantages from the employees and employers point of view," said the member. Advantages for employees to use the program include financial incentives and early retirement. Employers will have the ability to reduce the number of civil service employees by not filling the position again. Other employees will pick up responsibilities or the service won't be provided to the general public. If the position is deemed necessary, employers can hire a new worker at the bottom of the salary scale, said the member. Some disadvantages may arise through workers who have recently retired and didn't receive the salary incentive or employees who aren't quite old enough to retire and the program won't be available when they are, says the member. "I think it's a good thing," said the member. "The government is doing this because they feel a need to do it." Each department is being asked to look at their whole work force and develop an organizational chart, making sure everything gets done if positions are not refilled, said Binns. The Premier is asking departments to look at their spending to see if cuts can be made and look at delaying some projects. Also, any department travel has to be deemed essential in order to be approved, said Binns. "It's always difficult to operate in times of fiscal restraint, but I can assure you that we are committed to honouring collective agreements and we will continue to do so," Binns said. "We're also committed to offering the best possible service to Islanders in a manner that meets their needs. And make no mistake about it, despite these changes, the business of government will continue." For 2001, the Island's deficit reached $35 million. This year the projected deficit is $37 million. Binns has said by 2003, if cuts aren't made and more revenue found, the deficit could hit $100 million. "We need to slow down some expenditures, set things aside until the cash position improves," Binns said. "Some roads may not be rebuilt and there may be construction delays." Additional revenue will be known when the budget comes out late March. |
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