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Our Call for Decreased Civil Servant Salaries

Recently Peter Coleman, President and CEO of the National Citizens Coalition, was featured in an article by Kathleen Harris discussing the salaries and bonuses that some Canadian civil servants receive. You can read the full article here. We have been receiving some inquiries on this article and would like to take this opportunity to clarify our position.

Our issue with the crown corporations is solely because the taxpayer pays for their existence and there is a need for responsibility in how taxpayer moneys are spent.

We have no issue with how much Mark Carney is paid – he deserves it and could make more in the private sector – as well as Chief Justice of the Supreme Court, Beverley McLachlin.

However, there are MANY crown corporation CEO’s who are overpaid such as the head of Canada Post, Moya Greene.

As an organization, we firmly believe that in these tough economic times leadership is required. The federal government should be reviewing all crown corporation contracts and when existing crown corporation senior executive’s compensation contracts come up for renewal, they should be adjusted to reflect the reality of the “real world”.

Crown corporation heads should also be reducing their compensation and showing leadership- especially if their profitability (or increase losses) becomes under attack.

We thank you for all your questions and comments. Please keep them coming.


Comments

Glenn Reist says:

I notice that all names listed show bonuses ranging from 15% to 33%,
In the private sector bonuses are contingent on profits; losses - no bonuses.

In the public sector, is a bonus a given?

The payer,- the private individual today is suffering loss, big time. This then should reflect on the pay to the public servant.

submitted on March 18th, 2009 at 10:13 am

Fred says:

the civil servants should be taking a cut also like everybody else in these tough economic times.

submitted on March 18th, 2009 at 10:35 am

Doug. Tate says:

I endorse the Harper government but have unsuccessfully tried to get action on this program.I refuse to forward any futher donations to the party until they demonstrate strong action on this matter!!
D.U.Tate

submitted on March 18th, 2009 at 10:39 am

David says:

Not unreasonable to review Compensation Packages, it should be an anuual requirement, there is a glut of unemployed professionals who are prepared to work for less dollars, supply & demand should be basic guidelines for setting compensation packages with more emphasis on high results get high compensation. Also good to have employees on 1-2 year contracts, easier to sever relationships.

submitted on March 18th, 2009 at 10:41 am

d morris says:

By what criteria do you judge the CEO of Canada Post overpaid? 640k seems like a modest salary for such a large corporation. If this was a private sector company, the position would pay well above that.

This is one position where you can compare the salary to private industry salaries, how do you judge the Supreme Court salaries when there is no PI comparable?

If Canada Post turns a profit, and runs a reasonably efficient service, I have no problem with this relatively modest salary.

What is the salary of the CEO of the Federal Gun Registry, which loses a huge amount of money every year? Same question for the heads of the Human Rights Commissions and Tribunals.

CBC needs either a thorough housecleaning, from top to bottom, or to be sold to a private corporation. It has never turned a profit, and has such a tiny percentage of the viewer market, it is irrelevant.

With CBC’s financial track record, the CEO would have been fired long ago, if there was any accountability.

submitted on March 18th, 2009 at 10:43 am

D Lunn says:

Leaving a comment might make you feel better but you are seriously dis-illusional if you think your comments will have any impact on the compensation of these pigs at the trough. I am still waitig for an elected Senate.

submitted on March 18th, 2009 at 11:28 am

Glen Bogart says:

Any one who is responsible for an large organization or department should be well compensated if it is run successfully or profitably, but what is the benchmark for most of these appointments.
Hopefully good compensations keeps their hands out of the cookie jar, but not likely especially in government and the expense accounts and other perks are not mentioned in the statistics which I am sure are astronomical.
Most of these government departments cost millions and loose millions, and some are even obsolete so how does this warrant a high wage or bonus.
During these hard times I beleive all public sector personnel, at all levels of government, who have guaranteed wages, pensions and ontold perks, union or not, should be cut back by at least a nominal percentage but 20% would be a better number.
We are all in this together so if the government cannot set an example then how can we expect anyone else to.

submitted on March 18th, 2009 at 11:41 am

Lloyd Brinson says:

The time has come for Canada to rethink it’s justice system and the amount of money paid to useless organizations such as the CJC, and other side offices of the judge protecting entities. Money is being thrown in the ditch in these places and the government expects it’s poor people to keep them forever richer. Any time there is a compliant about Canada’s judicial system they all hide behind the wall of — “The independece of the Judiciary” whether its a judge violation of the Charter or any type of complaint.

submitted on March 18th, 2009 at 12:25 pm

Pancho Pantera says:

I agree that this is not a good time for raises or bonuses.

submitted on March 18th, 2009 at 1:20 pm

ken says:

$640,000 and people think this is a good pay for the head of the post office ??? Hope he invested it all in AIG !!!

submitted on March 18th, 2009 at 1:35 pm

Stephen G. says:

Thank you N.C.C .for allowing me an opportunity to speak out on this subject of too much pay for too little work. I would like to pose a question to the Government. How many of these overpaid people in our view can be brought down to a reasonable level and in most cases below 50% of that which they are now taking for income and perks. Ask them to take the lower amounts and if they don’t think they can be replaced just run a few ads and see how many applicants will come forth. Then only the best qualified would be considered. I’m quite certain that $millions of tax payer funded positions would cost ever so much less and perhaps by better qualified respectable people. Thanks, Stephen G. of London, Ontario.

submitted on March 18th, 2009 at 1:43 pm

Warren says:

I don’t think these management salaries are unreasonable but the govt payroll, since the positions are secure, ought to be subject to the same restrictions and cuts that private sector execs are facing. Perhaps a 5-10% management compensation cut across the board and suspended bonuses until GDP turns positive, a freeze on salaries/hourly rate increases of all other personnel and a hiring freeze, except replacement of retirees, would be reasonable. Can’t imagine that anyone will be quitting the public service for a while!!

In the ’50’s, ’60’s and into the ’70’s, Canadian public service personnel were underpaid by general standards. But their pension & benefits percs were the best and you pretty much had to throw a shoe at your boss to get booted out of your job (pardon the pun).

If it is still part of the Auditor-General’s mandate, value-for-money audit reviews ought to be heightened during tough economic times, especially if greater individual productivity is going to be necessary under a hiring freeze. Harper et al may hear the political bleating from the Dippers if these constraints are introduced, but one could safely bet that Joe and Jane-public would be totally supportive, knowing they are already subsidizing CAW members and thousands of other similarly protected workers. And teachers, take note!!

submitted on March 18th, 2009 at 4:07 pm

LIZ says:

I LIKE MANY OF THE OTHERS THAT COMMENTED BEFORE ME FEEL THIS IS A LOST CAUSE. OF COURSE WE WOULD LIKE THEM TO DO THE HONOURABLE THING AND TAKE A WAGE CUT. BUT SERIOUSLY IT WILL NOT HAPPEN. PLEASE GIVE ME A GLIMMER OF HOPE TO THINK ALL OUR EFFORTS TO ENGAGE ARE NOT IN VAIN.
MOST SHOULD HAVE WORK EVALUATIONS YEARLY AND SHOULD BE PAID ACCORDING TO HOW THEY PERFORM, AND FIRED IF NOT UP TO PAR.

submitted on March 18th, 2009 at 6:04 pm

Ronald Noble says:

If any person or organization believes anything will ever be done to stop the needless hiring and over compensation in the civil service they are dreaming in technicolor. The control of this rests with our elected governments who by the way are also civil servants and belong with the rest of those who receive a government pay cheque from the wealth that was created by the private sector. We are now moving into a time wherein the living standards of those in the private sector is becoming substandard to those who are paid by the government. Private sector workers should be paid more than government workers as they do not have job security compared to government workers. I do not believe government will deal with this. Mike Harris tried to fix things in Ontario and we all know what happened.

submitted on March 18th, 2009 at 11:29 pm

Ronald Noble says:

Prior to making my comments I had not read the article “Federal Fat Cats”. The NCC Blog I read was “Our Call for Decreased Civil Servant Salaries” Had your blog been entitled “Our Call for Decreased Executive Civil Servant Salaries”it would have been clear that you were not refering to all civil servants. I happen to believe it is the high saleries and generous benefits paid to teachers, policemen, firemen, garbage collectors and most government employees that is causing high taxes. Taxes that everyone must pay even though they work in the private sector and do not receive a government cheque for their labour. My article was not what you were looking for. Sorry.

submitted on March 19th, 2009 at 8:36 am

Bill M. says:

The heads of Crown Corporations do not shoulder the extensive responsibilities and obligations that go with being the head of a private corporation or a publicly listed company. The heads of Crown Corporations are nothing more than clerks and administrators serving their political masters, not the taxpayers; and they should be compensated accordingly .. with none earning more than the Minister to whom they report.

submitted on March 19th, 2009 at 8:43 am

ScurvyDog says:

Agree with some comments that the public sector bonus should reflect performance. When services are beneficial and financially secure, the bonus should increase. A committee could determine who and how much should be paid out.

I just thought of Ontario Hydro and the absurd salaries and bonuses paid to the chiefs. Now we are all paying a debt retirement charge.

submitted on March 19th, 2009 at 9:18 am

Gale Green says:

Public servant salaries are much higher than those in the private sector and have been steadily creating a wider gap over the years. In addition, with the government, or should I say, the senior officials, not willing to address union issues, there is no accountability in the public service. It is time for accountability at all levels and we would see a workforce that is stronger, more dedicated and directed towards the goals of the governement. There is so much waste at the taxpayers expense.

If the average Canadian could read and understand the goverments financial books, they would be appalled. Most public servants could not get a job in the private sector (partly because they are stereotyped) because of an absence of work ethic and hiding behind the union, rather than being accountable for their productivity, workplace behaviour and their actions. In short, public servants at all levels are overpaid not only in salaries, but also benefits such as travel reimbursement (for which no receipts are required) useless conferences as perks and the multitude of benefits agreed to with the unions. For example, a public servant gets full pay if it snows in Vancouver, a water pipe breaks and full pay is received as it is perceived by teh goverment to be out of the employee’s control. This has to stop.

submitted on March 19th, 2009 at 2:39 pm

wade says:

often times the highest paid are mere figure heads and political friends with the real work and very difficult work being performed one level down. Then you go 3 and 4 levels down and you find the really well paid with the cushy jobs that are highly overpaid relative to the private sector and often 5 people where there would be one but all working very hard planning and having meetings one after the other so nothing gets done but planning for meetings and meeting on matters that would simply get done in the private sector without talking about how, why and where the next lunch meeting should be but then the private sector is not politically at risk (unless it accepts handouts).

The post office is a political monopoly - the post office management probably works quite hard - they have to in order to get work through a union that has in the past apparently protected dishonest employees , insists that someone can log off sick and then claim overtime within a few hours , gives the worst service imaginable and treats the user like a robber and scum instead of a payor of their wages. yes post office management has it tough - give them a break - close it down - email and private service do a more reliable and better job.

Now on to the other areas that are filled with procedures that serve no purpose other than to spread money to buy votes and make do gooders rich at the taxpayers expense. Shut them down - save billions - are we really giving refugees teh equivalent of $50,000 plus a year while poor Canadaians are told to make do on $12,000?? (that is the rumour - is it true??)

submitted on March 23rd, 2009 at 8:03 pm

Cam Walker says:

Why not eliminate all 44 Crown Corporations? Most of these are leftovers from the Trudeau era and were set up as though they were normal private corporations out to make a profit for their respective shareholders. The fly in the ointment is that, like private corporations, they cannot be publically audited even though the Candian citizens own them. Real shareholders are not given the “mushroom treatment” as to how the money comes and goes. I’m willing to bet that if Sheila Fraser and company could audit these 44 agencies in detail that billions of dollars of corruption, graft, nepotism, simony and general incompetence would be uncovered that would easily pay for our ailing health care program.

submitted on March 31st, 2009 at 11:17 am

Jack F Coffin says:

Leave the salaries alone. Work on health care drugs. A friend of mine has macular degeneration of his eyes and the drugs are not covered by health care. It cheezes me off big time when drugs for Aide are payed by our health care system. The first word in Aides is acquired and self inflicted, while eye problems are acquired through no fault of the person

submitted on April 13th, 2009 at 7:16 pm

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