The war on the civil service

Pensions and layoffs are just one front in a long-brewing battle

by Nancy Macdonald on Wednesday, February 3, 2010 10:50am - 88 Comments

The war on the civil service

Ever since Stephen Harper anointed Stockwell Day as his cost-cutter-in-chief last week, the Prime Minister’s Office has been going out of its way to highlight the significance of shifting Day to head the Treasury Board in an otherwise ho-hum cabinet shuffle. Said to be among Harper’s favourite ministers, Day is now cast as the PM’s Dr. No—the man to stare down resistance to new austerity measures. As part of Ralph Klein’s cabinet in Alberta back in the nineties, Day pinned a loonie to his lapel (evoking Ayn Rand, who once pinned a gold dollar sign to hers) and oversaw thousands of public-sector layoffs. In Ottawa, a beleaguered public service is paying attention.

Within a week of Day’s swearing-in, 18 federal government unions gathered in Ottawa for a two-day meeting to map out a strategy against the anticipated assault. They expect the Tories’ first target will be the bureaucracy’s famously generous pensions—what Finance Minister Jim Flaherty calls their “handsome arrangements.” Flaherty has ruled out many other options for deflating a bloated deficit. He’s said the Conservatives will never raise taxes or cut transfers to the provinces to balance the books. Instead, they’ll rely on economic growth and if it’s not enough, they’ll cut “other programs.” Up against one of the largest deficits in the country’s history, civil-sector union leaders are girding for a fight.


The public-sector payroll is only the latest front in a war brewing behind the scenes between Tories and bureaucrats. Some observers point to the government’s attack on Richard Colvin, the diplomat who raised concerns about treatment of Afghan detainees, as the clearest sign of friction. In the wake of the Colvin affair, reports of extreme measures to rein in bureaucrats have come to light. Senior civil servants tell of having their pens taken away to block them from note-taking, and of meetings proceeding routinely with no written record. According to Liberal Sen. Roméo Dallaire, more famous for his peacekeeping service as a general in Rwanda, a “draconian” current of partisanship now runs through Ottawa, quite unlike anything he has seen in his many years in the capital. Dallaire told Maclean’s the “brutal” atmosphere runs counter to the public-sector ethic of transparency and objectivity.

The government’s line is, there’s no problem. “Under this government we pride ourselves on the fact the public service does a good job and does so in a non-partisan way,” says Dimitri Soudas, a spokesman for the PM. But the discontent bubbled up to the surface last summer, when Ottawa’s Embassy magazine revealed a controversy within the Department of Foreign Affairs and International Trade over language guidelines handed down to civil servants. The new rules were met with push-back from senior Foreign Affairs officials and leaks to the media. Among other changes, the word “humanitarian” was excised from the term “international humanitarian law”—“as though scratching out the term somehow makes it go away,” former ambassador and erstwhile Mulroney speech writer Paul Heinbecker told Maclean’s. “Gender equality” is now “equality of men and women,” while “child soldier” has become the more anodyne, and vague, “children in armed conflict.” (This, says Dallaire, who started the Child Soldiers Initiative, devoted to ending the practice of using children for war, was expressly designed to release Omar Khadr, Canada’s most famous child soldier, from protocols.)

But it is entirely within a government’s purview to make such changes, as Lawrence Cannon told Embassy last year. Some of the changes, Cannon said, were simple semantics; others were a matter of Canada’s foreign policy direction. And if bureaucrats don’t like it, he added, they’re free to leave.

The underlying fear of many mandarins is that they will be pushed into partisan behaviour. But on this score, Donald Savoie, a professor of public administration at the University of Moncton, says the Harper government is no worse than any that came before it. Governments, both Liberal and Tory, have been guilty of that through Canadian history. The only difference is that Harper was elected after musing publicly about how a Liberal civil service and Liberal-appointed judiciary might restrain Conservative tendencies. Apparently they haven’t. Last week, a trio of recently fired watchdogs—Paul Kennedy, Peter Tinsley, and Linda Keen—the clearest evidence of a chill in government relations, visited a prorogued Parliament to complain that the Tories are “at war” with the government’s independent tribunals.

There is another issue: the line between partisan interests and government funds. Some suggest that respect for that boundary—evident in the early years of the Tory minority—eroded with the exit of Harper’s first chief of staff, Ian Brodie, in the spring of 2008. That fall, the launching of a $34-million government advertising campaign, paid for by taxpayers, irked the civil service enough to prompt another round of media leaks, this time from sources within the Privy Council Office, previously famous for its discretion.

Half of the country’s civil servants report facing “undue political interference,” according to a new survey by the Centre for the Study of Democracy (CSD) at Queen’s University. And that’s just one of a series of complaints from the civil service. Report co-author Tom Axworthy, who spent years in the civil service starting in the 1960s, says that over past 15 years, the sector has fallen victim to “musical chairs” management. No one stays at their jobs long enough to learn their files; there isn’t any institutional memory or anyone to mentor or train new recruits who flounder under serial bosses.

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  • beentheredonethat

    I’ve said it before and will say it again: the private sector was out of the gates in the 1940s, just afrer North America’s social safety network was put in place, to augment their bottom line and do away with pensions systems that the unions had fought so hard to get into place. It is unfortunate that many unions lost their way and stopped focusing on workers’ rights. This resulted in Corporate spinners convincing their workers that unions and pensions were bad things. While this should never have been allowed to happen, I don’t think attacking public servants is the answer, just becasue their unions remained stong and because they were not foolish enough to fall into that particular corporate trap.

    What would make real sense is if we all stood up demanded that our society change to ensure that all Canadians, regardless of sector worked in, have similar if not the same solid and healthy pension systems. Don’t fall for the corporate/republican spinners who woud mislead you regarding the long terms costs. They only say such things because they want to line their own pockets.

  • parkscanemployee

    21 years in government …salary $45075 … $54925 LESS THEN $100000.

    I am ready for the fight to keep my dignity and my pension. I make $15,000 less then my private sector counterparts doing the exact same range of duties in their jobs.

  • JTE

    So, I would call my "Gold Plate Pension" more of a deferred wage. Do you realize that I pay for 40% of the money that goes into my pension? It comes off my paltry pay cheque every month. As for early retirement, I don't even know where to start. Early retirement at 55 with 30 years service (Full Pension) I've heard the finance minister say this.
    Well, first off it's BS. Pensions are based on an accrual rate of 2% per year which would mean after 30 years you would receive a 60% pension. 70% is a full pension.This is penalized if you are under 55, which is most definately discriminatory, and I can't believe it hasn't been challenged yet. Anyways, I don't have much time for this shit, just getting a little tired of it, so I thought I'd say something. For anyone who reads this, please if you don't know what your talking about, don't talk about it.

  • http://intensedebate.com/people/StupidHarper StupidHarper

    Why attack my pension that I paid into now for over 15 years. Don't I get rewarded for staying in one employer and not constantly moving and then whining when I hit 40 and have no retirement benefits in place. Want to save money across the federal government..easy..make public the amount of monetary bonuses paid out to bosses annually using TAXPAYER'S DOLLARS! A few years ago this bonus system came into place and made government services quantity over quality. Push the workers to the wall, demand they do more each year with less and less..then come year end and my boss gets his bonus paycheque. I just do the job for the paycheque, he does it for the bonus. We complain of CEO bonuses..but in the federal government, we keep it hush hush..imagine if Joe Taxpayer knew that.

  • Dede

    Gold platted pensions? Civil servants retiring at 55 with "full" pensions? Gimme a break! The only way to retire with a full pension is to work 35 years… given the fact that age of entry into the public has been hovering at 32 for the past few years, then the "average" civil servant can only retire at 67 is he/she want a full pension.

  • regina filangie

    I have worked for the Federal government for less than 3 years and have paid into my pension from day one; I also pay bi-weekly into a seperate and personal retirement fund. I fully expect that the notion of a "full pension" will be long gone before I have a chance to retire which is why I won't leave my future in the hands of politicians or the union. I feel this is a reality few Canadians are prepared for.

    While I haven't been a public servant for long I have always detested the ubiquitous comments from taxpayers about "their money" funding initiatives, services and salaries they do not believe in. What makes Canadians think a reduction in expenditures will result in "reimbursement" to tax payers? A reduction in expenditures will result in a reduction in services – that means one less person saved by search and rescue, a family goes hungry one week earlier due to a reduction in EI benefits, more accidents and lives lost due to a reduction in regulatory safety services provided by federal government departments.

  • regina filangie

    amended to above comment:

    While I agree that no organization is perfect and there may be some fat to trim within the PS; I know that the majority of my colleagues (especially the under 40 crowd) chose the fed gov as their employer because they care about making a difference for this country and its citizens…and we don't even expect a pension in return.

  • http://intensedebate.com/people/pragmaticcanuck pragmaticcanuck

    When a Public servant contributes 1 dollar to thier pension the federal government contributes 2 dollars, therefore it is Canadians who contribute 70% of the pension.

    Read it here.
    http://www.tbs-sct.gc.ca/hr-rh/bp-rasp/pensions/p…

    Public service is grossly over valued, it needs to cut costs one way or another – Chretien and Paul Martin cut military and laid off thousands of employees, wether you are a lefty or right, its not evil, its required.

  • http://intensedebate.com/people/pragmaticcanuck pragmaticcanuck

    When a Public servant contributes 1 dollar to thier pension the federal government contributes 2 dollars, therefore it is Canadians who contribute 70% of the pension.

    Read it here.
    http://www.tbs-sct.gc.ca/hr-rh/bp-rasp/pensions/p…

    Public service is grossly over valued, it needs to cut costs one way or another – Chretien and Paul Martin cut military and laid off thousands of employees, wether you are a lefty or right, its not evil, its required.

    • kathy

      Then you should see how much you are paying for the PM and the MP's. The government cuts are hypocritical, they get paid from the same pot- only WAY WAY more, and they've managed to deflect the attention to lowly servants of the public. Why wouldn't the leaders of the country set an example by freezing their own wages and reducing their own retirement- which is truly golden!
      And if by cutting back the pensions of employees of Government of Canada is moved forward, it's setting a precident for the rest of us lowly people working in the private sector who get zero. We need the government to fight for all to have good pensions. Not cut from some and still leave others with nothing. No, they should raise the standards for all!
      Everyone deserves fullfilling work and satisfaction.

  • Adrian

    The pensions are gold plated? 5 years ago nobody wanted to work for my employer 'cause the benefits and wages were well below the industry norms. We lost 60% of our workforce in one year as people decided they'd had enough of the poor pay, and poor recognition, and left to join the private sector. We basically only retained those people who were close to retirement.

    Now the economy has gone down and I'm told that my formerly paltry pension plan is "gold plated" and too good for me.

  • Adrian

    Some jobs are civil service jobs 'cause it's unrealistic to make them private. If you wanted to pay for it privately the option exists already for you to do so…but you don't…so quit being a hypocrite.
    You want a firefighter to be privatized? Ever see a firm go bankrupt? Want that to happen to your fire department?
    Want your doctor to take bids on his services? While you're in the emergency room? You'll pay anything if the healthcare practitioner says that, for a few extra bucks, he can help your loved one live a little longer with a little less pain.
    Want a judge to be the lowest paid person? Lower than the lawyers that stand before him waiting for his evaluation? Lower than the corporate execs?
    And get real….CEO's make less than judges? I guess it all depends on how you calculate income. If you calculate net take home moneys over a year…no way do CEO's make less than judges. CEO's get bonuses, stock options, and other things that don't show up as "income" in this calculation. You should know that.

  • archiewilkie

    sorry, something went wrong with my submission.

    If the government will not raise the GST back to where it should be, then there sooner or later have to be another tax increase somewhere. I think that everyone should be taxed as an individual. Your "well-off friends" probably have highpowered accountants looking after their income finding loopholes to avoid paying what they should. Effective, legal and and amoral.

    That's better

  • Tom

    So we have A Conservative Party in a minority postition who is unable to go back to the roots of the party (yes Reform) and start the process for a flat income tax. yes they made promises that are soon forgotten. Status quo and all that. Bring on the flat tax. It is more fair and equitable than the current tax system.
    As for the posturing and cutting – stypical Conservatives who will, if they staty in power, bring Canada to another recession by contracting the economy.
    So instead they pick on the Public Service employees – easy targets I have to day – rather than be a proper governement and do what they need to do – make structual change to the tax system as they promissed and in the short term raise GST back to 7% to keep the deficit in check (if they can stop tossing money out at all of thier friends)

  • Tom

    Can anyone, anyone show me a private pension that is reduced by the exact amount of CPP you recieve at 65????
    I though so. NO!
    Public Servants do.

  • Gill Burthiame

    Never got this much attention when our mill was shut down and 6hundred jobs were lost , i will just say like they said to us,
    SUCK IT UP AND LOOK FOR ANOTHER JOB.

  • Grace

    what is civil service? I have this worksheet and I cant find it out! help me?

  • http://intensedebate.com/people/Canuckguy Canuckguy

    The fact of the matter is that the indexed pension that government workers enjoy is the 'gold plated' issue that raises the hackles of the less fortunate stuck with fixed DC pensions or worse still DB pensions or worse again, no pensions at all except for the piddling CPP and OAS.

    If the indexing were removed, there would be less clambering for early retirement and less future liability for the taxpayer in funding these unsustainable pensions. And of course a lot less jealously

  • David B.

    Yes and that is where they start because they have bigger fish to fry ……. OAS & CCP for everyone except Senators and MP's, but wait they will vote on themselves …. " All in favour of keeping our pensions and perks say aye! passed 290 to 18, the 18 is always the ones in shaky ridings. light on yet?

  • Matthew

    and what do you think government is going to do when they're finished with government worker pensions and there is still a deficit. Cuts to CPP and OAS.

  • http://intensedebate.com/people/Canuckguy Canuckguy

    Mathew, rather than severely annoy a major voting group(the baby boomers) by targetting them alone in reducing the deficit by cutting the OAS and CPP, they will spread the pain and mildly annoy everybody with general tax increases.

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