How the Liberals’ $11.6-million-a-year public servant compensation plan will be calculated

The government has announced it is planning to set up a public service compensation scheme, including an $11-million salary cap for public servants, to make it easier to find suitable jobs.

The plan, announced Tuesday by Treasury Board President Tony Clement, comes in response to the government’s public servants’ union saying public servants should be paid what they can reasonably earn.

“The proposed reforms will ensure public servants are able to maintain their jobs without fear of losing their pay,” the union said in a statement.

“By providing a range of support options, including flexible and variable remunerations, public servants will be able to continue to make the sacrifices they need to do their jobs well.”

The federal government’s compensation plans for public sector workers, which include the $10.5-million annual salary cap, will be determined by the Minister of Public Service Development and Labour, Diane Finley.

Clement, in his budget speech, said public servants “shouldn’t be the first to find themselves out of work.”

“Public servants should not be the second to face the loss of their jobs,” he said.

He said the government was going to introduce an additional $3-million incentive for employers to offer paid parental leave, in an effort to reduce job insecurity for public-sector workers.

In his budget, Clement said the plan would ensure that public servants would be able “to make the appropriate sacrifices” to keep their jobs.