Quote:
Originally Posted by Dan02
Why aren't public sector employees salarys just tied to inflation, seems to be the most fair thing to do to me imo.
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Oh, that most certainly would be a recipe for disaster.
Let's go back to the year 1999. Not only is the private sector paying huge $$$ to bring in last minute consultants to fix their Y2K programs, but Nortel, JDS Uniphase, and a slew of other tech giants were booming. And the private sector was offering $100,000 contracts to people making $50,000/year in the government. Whether you were an old-timer that knew COBOL and JCL or you were a new graduate skilled in C or Java, there was huge demand in the private sector for your skills. We were canceling projects at alarming rates and there was concern that we wouldn't have enough tech guys to run even the primary systems. Therefore Treasury Board stepped up with a significant pay increases which stopped the bleeding.
A similar situation has occurred now with the FI's (Financial Experts). With all the rules put in place after the sponsorship scandal and Gomery, we need financial accountants to ensure the rules are being followed. However, in tough economic times, experienced financial accountants are actually difficult to keep as private sector companies are looking for people who can analyze their business and make recommendations for reorganizations. So, again, Treasury Board gave significant salary increases to the senior FIs.
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As for the current PSAC negotiation, that 2.3, 1.5, 1.5, 1.5 is atrocious and they had better not think to ask the CS community for the same thing. I actually would consider 2.3, 1.5, 1.5 but it is that fourth year that just stings. Now the 2.3% is for last year because most government workers have been working without a contract since 2007. Do I think that the current economic downturn is likely to keep inflation under 1.5 this year? Probably. Next year? Unlikely, but possible - and I realize that the private sector is putting in wage freezes or very, very modest increases. But adding that extra year in there just allows Treasury Board to exploit the tough economic times and put in a long-term contract (in the past most contracts have been two or three years in length as opposed to this 4 year contract) during a recession. Again, I would suggest that in 2012 when the economy is moving along quite well the government will have trouble attracting skilled labour because the private sector will be able to hire the best of the best. And the government will be left with the best solitaire players our universities can provide.