One of the more interesting aspects of the tentative deal reached between NAPE and the provincial government is the elimination of severance after this year.
Every government worker with at least one year of service will be paid out severance this year. Each eligible worker will receive one weeks’ wage for every year of service up to 20 years.
No further severance will be paid out after March 31 of this year.
The tentative deal, which is actually separate agreements for 15 bargaining units, is currently under ratification.
Clause Concerns Employers
Employers in the province are very concerned about the no-layoff clause in the public service. Government cannot lay people off to reduce costs. Instead, the public service will be reduced through attrition.
NAPE is going through the ratification process for the contract, which includes a wage freeze over the four-year term.
Richard Alexander, the executive director of the Employers Council, says not being able to lay anyone off will hinder all efforts to reduce wage costs, including at agencies, boards and commissions. The premier has told ABC’s to cut costs, but Alexander doubts that will happen under the new rules.
He says if the Newfoundland and Labrador Liquor Corporation closes a store, making jobs at that store redundant, it will not be ale to lay anyone off.