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

Depression among civil servants is at a ‘crisis’ point, as is a brain drain As of the fall, fully half of the 22 core deputy ministers in Canada had been at their jobs for less than two years. Nine had been there less than a year—a “chaotic, pick-up-the-file-and-run, everybody-on-the-march” way of running things, says Axworthy. Compare that with the Harvard Business School’s list of “Top 100 CEOs,” says public policy commentator David Eaves: of the top 10, seven had been at the job for 10 years. The others had put in at least eight. “Nobody just showed up, and did a two-year stint as CEO.” Deputy ministers aren’t exactly CEOs who run the show; still, years on the job count.

And a good relationship between politicians and senior public service, says Axworthy, “is the nub of the enterprise. If you’re a minister you want confidence that the man you’re talking to knows everything there is to know about agriculture.” At one time, he says, “ministers had a huge amount of trust in their deputies, cause their deputies knew those files cold.”

That atmosphere of trust, he adds, has disappeared. And Eaves says it’s not clear ministers actually dislike having deputy ministers who don’t know their files. “This shifts the relative power balance in those conversations, meaning they can’t get pushed around by strong deputy ministers,” he says. Axworthy says he “can’t conceive” how the civil service can implement big, serious projects under the present system: “You start it, and you leave, and someone else takes it over. In the course of a year and a half, you have six, seven, eight project managers; by the time it is approved, the project is out of date,” he explains. “It’s managed to fail.”

Not all observers agree. Sure, the system is under a lot of stress, says David Zussman, an expert in public sector management at the University of Ottawa. “That said, the Harper government, particularly under Kevin Lynch, has made special effort to keep people at their jobs as long as they could.”

One-third of public servants nonetheless reported working for three different bosses in three years, according to the CSD study. And the relentless churn takes a toll on workers. Depression among public servants is the country’s “biggest public health crisis,” says Bill Wilkerson, founder of the non-profit Global Business and Economic Roundtable on Mental Health. Seventy-five per cent of federal executives report burnout, and mental health claims account for 45 per cent of all disability claims.

Of course, what civil servants see as evidence of their tortured state is seen by many outside government—staring down layoffs and delayed retirement—as evidence of a sector cruelly out of touch with economic and workplace realities. Rarely, in fact, has the disconnect between the public and private sector, which has borne the brunt of the current downturn, been felt so keenly.

But if Canadians don’t care that civil servants are unhappy, maybe we should because of another crisis in the bureaucracy: the brain drain. Although their numbers have soared—by more than 40 per cent over the previous 12 years—the public sector is “certainly not” getting a fair share of Canada’s best and brightest, says Peter Aucoin, professor emeritus at Dalhousie University. The “bright lights” who do land tend to jump ship after a brief stay, says an insider. In one competitive hiring initiative designed to lure exceptional graduate students, he says, the bulk of students in a cohort year left the sector after 18 months. After three years, none remained. Many question if the others, who “came for the parental leave, and stayed for the pensions,” as it goes, have the mettle to innovate and take much-needed risks to modernize the sector.

Public-sector union bosses bracing for a showdown in Ottawa are likely aware the enemy extends beyond the Hill. Around the world, snarls of hostility are beginning to be levelled against fatted states. But they’re not likely to go gently, and Heinbecker, for one, thinks civil servants have got ammo better than even the threat of strike. “If the Harper government thinks they had leaks before, and now they’re going to start playing with pensions—well, they ain’t seen nothing yet.”

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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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