Policy Commentary

“Pay in Arrears” a 1.2 Billion Dollar Shell Game

As communicated two weeks ago, the government is seeking to unilaterally implement a significant change to how we are paid. The employer has advised that starting January 14, 2014,a  “pay in arrears” system will be introduced whereby we will be paid two weeks late for our work.

Public Service employees would no longer be paid in real time. Rather, you would be paid for the two previous weeks of work. Upon leaving the Public Service, you would be paid the final two weeks owing to you. To punctuate this change, the employer will reportedly be seeking to recover two weeks of pay from us through a 4% reduction in wages for 2014.

This scheme constitutes an unlegislated tax on public servants, imposed without a proper business case or acceptable rationale given the administrative burden and financial hardship it will place on 250,000 Canadian families.

As FIs, it is not difficult to see that this accounting shell game is designed to generate a fictitious deficit reduction for political purposes. Deferring 4% of the $30 billion dollar annual federal public service payroll will appear as a $1.2 billion expense reduction in 2014. Of course, the responsibility to pay hard working professionals for our work accomplished in 2014 will only be delayed until we leave the Public Service.

ACFO was not consulted on this proposed pay administration change during its development. We have been advised that the Employer intends to hold meetings with bargaining agents in June and July but no specific dates have been provided.

Together we will expose and oppose this transparent attempt to have our families again bear the cost of a political agenda.

Milt Isaacs, CMA, CPFA
President, Association of Canadian Financial Officers

2013-06-21T00:00:00

 

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