Big changes to severance in PSAC deal

Payout of accrued money can be taken now or delayed
By Danielle Harder
|Canadian Labour Reporter|Last Updated: 11/19/2010

There will be substantial changes to severance entitlements for 95,000 federal government workers, if they accept a deal recently reached between the Treasury Board and the Public Service Alliance of Canada.

The agreement would give employees in administrative, operational, education and library science jobs a 5.3 per cent wage increase — 1.75 per cent in 2011; 1.5 per cent in 2012 and 2.0 per cent in 2013 — over the next three years. However, severance for voluntary departure will be eliminated.

“It was very difficult to give up voluntary severance,” said PSAC president, John Gordon. “But we feel it’s a trade off. Employees have more pensionable earnings. It’s better to accumulate compensation for retirement through income.”