OTTAWA, ON: Just in time for Labour Day, the Canadian Taxpayers Federation (CTF) is highlighting the latestStatistics Canada data on the most serious labour issue in Canada – the growing gap between the pay, pensions and benefits of government employees and what everybody else is getting.
The CTF is calling on governments across the country to control government salaries and phase out gold-plated, defined-benefit pension plans – guaranteed, indexed, pensions for life.
The latest Statistics Canada data shows government salaries are increasing faster than in the private sector.
The data also shows the percentage of government employees covered by a workplace pension plan continues to increase while fewer and fewer Canadians working outside government get to enjoy workplace pensions.
“Government workers are clearly getting a better deal than everybody else,” said CTF Federal Director Gregory Thomas.
“And what’s worse, governments are going into hock, borrowing billions to maintain and extend this wage gap.”
Salaries – Average Weekly Earnings
Workers
2001 (July)
2011 (July)
% Change
Government Workers
$756.01
$1,023.20
+35.3%
Everybody else
$598.81
$777.69
+29.9%
Pensions - Employees with Workplace Pension Plans
Workers
1977
2009
% Change
Government Workers
75.5%
86.2%
+10.7%
Everybody else
35.2%
25.3%
-9.9%
Pensions - Employees with Defined-Benefit Plans
Workers
1977
2009
% Change
Government Workers
74.8%
81.0%
+6.2%
Everybody else
31.4%
14.2%
-17.2%
“We’ve got provincial and federal governments bidding against each other, pushing up wages for jobs for which only governments hire,” continued Thomas. “They’re creating a sellers’ market for government workers that taxpayers can’t afford.”
The Statistics Canada data build on many other reports that show the large gap between public sector and private sector pay:
Frontier Centre for Public Policy – Public Administration Wage Gap Report
Fraser Institute - Canada should follow Wisconson’s lead
Canadian Federation of Independent Business – Wage Watch Report
