The provincial government introduced a new Workforce Renewal Program today to support its efforts to renew programs and the provincial public service.
The program offers incentives to employees to leave government voluntarily through early retirement or voluntary severance opportunities.
Premier Pat Binns said the objectives of the program are to reduce spending and renew programs. “The cost and demand for government services have grown to a point where we are now spending more money than we are taking in. We have no choice but to reduce government expenditures and this program will result in significant cost savings over the longer term,” he said. “We are seeking fiscal responsibility through Program Renewal.”
The Premier advised that, in addition to reduced spending, the Workforce Renewal Program will create opportunities to improve the way services are organized and delivered. “It is not enough to simply reduce positions. We must also reorganize and redistribute the work so that our programs are effective, efficient and affordable over the long term,” he said. “We must find ways to work smarter and redirect resources to areas where they are needed most.”
Provincial Treasurer Mitch Murphy said government chose to offer employees opportunities to leave their positions voluntarily because it is the fairest and most equitable way to treat employees while honouring collective agreements. “Our people are dedicated and hard-working professionals and we value the great work they do. We also recognize that a sustainable government is one that is smaller, smarter, less expensive and able to respond effectively to changing needs,” he said. “This program is the first major step being taken as part of our ongoing Program Renewal process to continuously evaluate and improve programs so they remain effective, affordable and efficient over the longer term.”
More than 500 employees are eligible for early retirement in the civil service, health and education sectors. Voluntary retirement incentives are being offered to employees who have the required years of service and are vested in their pension plans. In addition to regular retirement pay provisions, approved full-time employees will receive a financial incentive of 26 weeks pay under the voluntary retirement option.
A voluntary severance incentive of up to 26 weeks pay is available to employees who are not yet eligible for retirement benefits. Seasonal employees in the Civil Service who agree to terminate their position by April 30, 2005 may also be eligible to receive half of what they earned during their last term of employment.
Employees are eligible for these incentives based on the needs of their employing organization and pension plan. Employee information sessions are scheduled March 22 in Charlottetown, March 29 in Summerside, March 30 in Charlottetown and March 31 in Montague.
BACKGROUNDER
Workforce Renewal Program
A new Workforce Renewal Program is now available to employees of the Civil Service, the Education sector and the Health sector. The program offers incentives to eligible employees who wish to leave government voluntarily through early retirement or voluntary severance opportunities.
The program has been designed to create flexibility in the workforce in order to realign human resources with the program delivery requirements to be identified through the Program Renewal process.
Although the major components of the program are similar in all three sectors, there are some unique options in each sector based on organizational requirements and the provisions of the various pension plans. Interested employees are advised to contact their Human Resource departments to discuss their eligibility and options.
The Voluntary Retirement Option is available to employees who have the required years of service and are vested in their pension plans. In addition to regular retirement pay provisions outlined in the various agreements, approved full-time employees will receive a financial incentive of 26 weeks pay under the voluntary retirement option. Bridging incentives are available to employees based on the provisions of the pension plans. Several conditions for eligibility apply and this information is contained in the full Workforce Renewal Program documents.
The Voluntary Severance Option provides a similar financial incentive of up to 26 weeks pay. It is available to employees who are not yet eligible for retirement benefits. Eligible seasonal employees in the Civil Service who agree to terminate their position by April 30, 2005 will receive half of what they earned during their last term of employment.
Employees are eligible for voluntary retirement or severance incentives based on the needs of the organization. Employers may be unable to approve an application in situations where recruitment is a challenge or where the position is essential and cannot be eliminated. Participating instructional staff in the Education sector can begin their retirement at the end of this school term.
The Workforce Renewal Program is being coordinated by the Public Service Commission, Deputy Ministers, Health Authority CEO’s, School Board Superintendents, and Human Resources staff in all sectors.
Interested employees should contact their Human Resource manager for further details on the program and their eligibility. Upcoming information sessions are scheduled March 22 in Charlottetown, March 29 in Summerside, March 30 in Charlottetown and March 31 in Montague. More detailed information will follow.