Feds want to cut public service paycheques

Federal public servants could see a 4% payroll claw back as early as next year, if the Conservative government has its way.

The feds are reportedly looking at reducing pay cheques effective Jan. 1, 2014, as a way to match the way the private sector does business.

“The government of Canada’s current pay system is outdated, inefficient and must be replaced so that employees are paid accurately and on time,” Treasury Board spokesman Pierre-Alain Bujold wrote in an e-mail.

Having said that, “the government has made no decisions in regards to the pay process.”

Public Works and Government Services Canada handles payroll and here’s how the proposed system would work: In 2014, employees are expected to receive regular pay in their first cheque.

After that, their cheques will be docked until two weeks’ pay is collected, likely 24 pay cycles.

Employees would see their withheld paycheque when they leave.

“No matter how you look at it, this would create a hardship for our members because in order to implement the new system, the employer is going to have to hold back two weeks of pay,” reads a statement on the Public Service Alliance of Canada website.

The union is investigating the “policy change”, which is “being made without consultation and in violation of our collective agreements. We will do everything in our power to ensure that our members are protected from any and all financial hardship,” the statement continues.



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