Ottawa is playing host to Canada’s 18 federal unions for Tuesday and Wednesday as they draw out a battle plan for the expected showdown over public sector pensions.
Recent reports about a belt-tightening 2010 budget, as well as comments by Federal Finance Minister Jim Flaherty during the December Ministers meeting in Whitehorse, have pushed the unions into a state of readiness to protect salaries and pensions, according to a report by CanWest News Service.
Specifically, Flaherty’s remarks in Whitehorse regarding the “handsome arrangements” of all public servants indicate that wages and generous defined benefits pensions are under the microscope by the book keepers in Ottawa. Flaherty has said he will neither increase taxes, nor cut government spending.
John Gordon, president of the Public Service Alliance of Canada, told CanWest that he believes the Conservatives have long had public sector pensions in their sights, and other union leaders are warning the government to be prepared for a fight should it move forward with changes to their pension plans.
Related Stories |
Ron Cochrane, co-chair of the National Joint Council, which represents public service management and unions, told CanWest that it such a move would provoke otherwise docile union members, and that the unions would make sure that Canadians hear about the “rich” pensions of MPs, judges and deputy ministers.
A recent report by the C.D. Howe Institute outlines inefficiencies in the federal pension system and called for public servants—who currently contribute 32% of the cost of the plan—to increase their share to 50%.
To comment on this story, contact us.