Winnipeg Free Press

Winnipeg Free Press (Newspaper) - July 29, 1995, Winnipeg, Manitoba Ii h o Winnipeg free press july inside Story grits working without a net by Dan Lett National reporter Ottawa its one of the largest attempts at downsizing Ever undertaken and Ottawa is holding its breath to see what Impact it will have on the Canadian the Federal government is expected to spend billion Over the next three years to Cut Public service jobs out of across the in billions More have been Cut out of program Ottawa Hopes to Cut billion in 60 per cent of which or billion will come in the form of reduced wage costs As a result of in More than Federal jobs will disappear along with hundreds of other secondary for the Chretien the Short term is a race to see if the Economy can improve quickly enough to absorb both the additional people looking for work and As Federal jobs whats in store for Economy the absence of millions of dollars in in the Long Ottawa Hopes the spending and Job cuts get the National debt under control so the tax Burden can be if the Economy does pick up and if Laid off Public servants can find jobs then the Gamble will have paid off As the deficit if the Federal cuts trigger an eco nomic the situation could be worse than All we know now is that the Money and jobs Are said Carl president of info an economic thin tank in what we dont know is the offsetting which will occur if at Winnipeg my David parliamentary Secretary to finance minister Michael said some Early forecasts show wide spread Job and spending cuts could prompt a on Quarter to on half per cent contraction in the econ Walker Winnipeg North Centre said he agrees that the Economy must pick up steam to ensure the government cuts do not trigger another Walker said the governments debt problems have made this risk every two the Federal government has an operating sur plus of about due mostly to cos cutting that has reduced the governments to the entire Manitoba budget is just Over the Federal government spends about billion each month in costs to carry its enormous accumulated Walker while the economic forecast looked rather dire two months recent optimism about a Resur gence in the second half of the year has Federal officials feeling better about the Impact of the he it will be very difficult for Many of the Laid off workers to find other he but after the uncertainty of this things should in totally convinced that in the end were going to have a very Good organization and that people will make the adjustment in the labor Walker but Sonnen said that when an employer As Large As the Federal government cuts its spending so it sends Ripples through almost All parts of the the National capital which includes is expected to absorb of the fed eral Job an info metric study of the Impact of these cuts predicted that because of the loss of income in the area and reduction in the Purchase of goods and services by the fed eral there will be another to addition ii youre going Back to or just need new weve got Low prices this week that will move Youl bedroom set contemporary bedroom Sot includes headboard and 2piece sectional this sectional is not Only but also fabrics May sofa and Loveseat the look Tom term at a Trahoon it the Procel chair also mattress sets s warranty twin full Queen King 9368 5 warranty twin m full 86 Queen pc King pc 10 warranty twin 74 full 99 Queen Kinq warranty twin b4 full Queen 149 Kinq 20 warranty twin 94 full Queen pc Kinq 25 warranty twin full pc Queen pc King pc free layaway same Day delivery grand Al indirect Job losses in the this trend will continue across the the study where cuts to Federal spending should Lead to an additional indirect Job losses outside of the the study noted Job losses Are Only one of the expected effects of the Federal downsizing Consumers in the National Capi Tal Region Are expected to spend million less and the Provin Cial and municipal governments will lose million in tax John a professor of economics at the University of Mani Toba and spokesman for a social issues lobby said the Federal government May have mis calculated about the Impact its own downsizing program would have on the if the Federal Job losses con tribute to a High unemployment rate across the then fed eral expenditures for social pro Grams such As unemployment insurance cannot be lox Ley Good enough for some to bite Federal offers Are comparable to deals in the private sector by Dan Lett National reporter Ottawa although critics have painted the Federal governments Early retire ment and Severance offers to its employees As lucrative and Overly the plans Are comparable in scope and intent to some private sector the Federal governments Early retirement incentive and Early departure incentive will provide an estimated Federal Public servants with penalty free pen Sions or enhanced Severance Ben and while the government offers Are at the upper end of what Pri vat sector employers give their Industry officials Are in line with established Rob Notman an analyst with Murray Axsmith Aridi Toronto based career said the Federal govern ment had to overcome jobs ecu Rity provision for employees by that its bargaining would in terms of the said not Many private sector companies would allow employees to retire at age 50 with a penalty free pension possible under the Federal Many companies do offer enhanced the Edi Severance benefits Are also although the retraining allowance is a special Plum not available to Many private sector in a Survey of More than 570 Murray Axsmith 37 per cent said they calculated Severance on the basis of Between and one months pay for every year of which is comparable to the Federal formula of a Lump sum payment and one weeks Severance for every year of to judge the of the Federal governments offers and what exists in the private Sec the free press performed a Basic comparison with Imperial Oil considered one of the most generous private sector employ Early retirement officials of Imperial which eliminated jobs Between 1989 and allowed workers to retire at age 50 with a reduced pension but they were eligible for an enhancement credit of up to seven years contributions to their pension employees could retire penalty free with an enhancement credit at age 55 with the appropriate years of the Federal offer enables work ers Between 50 and 60 with at least 10 years service to retire penalty no enhancement Early departure at Imperial departing employees could Access up to 18 months Severance and career planning while More senior level employees could Access up to 24 there was also career planning the Federal governments Edi allows employees a Lump sum pay Severance and service Bene fits of up to 90 weeks or 22 months these employees also get up to in retraining Survey of key Federal department Ira Manitoba affected by Federal is not a comprehensive it does no Jim Jude every Federal employee or cuts number to Date using Erie i department agriculture agr food Canada 1 environment fisheries human resources development human rights commission Industry 2 Indian affairs natural resources National defence 3 air Winnipeg National film Board Public services transport Canada total 200 225 6 153 a 29 16 440 256 15 76 4 51 75 10 700 4 105 42 20eri 3edi Ltd 25eri 15eri 69eri Ltd 12eri 8edi a Ltd Ltd 21eri 23eri 185eri 11 Edi figures taken from Public service Alliance of Canada and reports from individual Eft Early retirement incentive to Date Early departure to Date not applicable department does Ripe qualify Ftp none reported to late a unavailable to department looking at divesting Itsell of Soto Eimont there Are 15 people employed in area in or All 2 Industry transferring i jobs to another department in Manitoba w we few decision on elimination was m february Transfer of jobs Lor new air mobility group to Winnipeg could them ars is about 350 jobs expected to be lost at cab other losses it san positions in Winnipeg All of which could be vulnerable pending results of Industry to Lake Soj Ejob announced to a 35year civil took retirement detailed Marilyn a 35yearvet eran of the Federal civil service is one of thousands of workers taking advantage of an Early retirement Here Are the details of the deals available to workers in and another11 agencies declared most affected by Abb to employee Mostaffa is Are not Avail Irvine executives of Crown department of Ceorther car retirement allows one of the 22 department apr As Early As with to reduction in pen to qualify Job must be during three years the program in 1 and july any employees declared surplus who wastage 50 Hab year service with the gov emment could retire on full pin Sion with Jna penalty 4 f duly to qualify for Eri employee must be age 50 or older and have at least 10 years of five years of which was the Bonus payment is no longer v terms receipt of notice of surplus status once the employee Hassid months rom Date of sur plus notice to leave the benefits employees get full pension based once Tribu tips to no penalties Onward actual pen Sion income varies base Don years of service and salary at total Cost million Gible Early departure incentive a voluntary Depar Tor surplus employ it kicked off july to qualify must be an employee declared surplus in one of affected departments arid terms employees have 60 Days from the time notice of sur plus status is Given to accept the must resign within v benefits employee with fewer five years of service can receive up to 44 weeks of regular employees with More than five but who qualify for Early can receive up to 70 weeks of those with More than five year experience who do not qualify for Early retirement program receive up to 90 weeks regular Lump sum eligible workers with More than five years Rylence get 52 weeks regular while those with less than five years get 39 weeks regular Severance two weeks pay for first year of continuous employment in pub lic Servic and one week Tor each additional Complete service pay up to six i weeks regular pay for those with More than five years service and whose age and length of service add up t least training allowance reimbursement of up to for training they Complete that helps them find it Jan its Luwie allowance Are receive pension total a Psi estimates that up to employees i ;