The province’s business community is weighing in on a no-layoff clause included in a tentative agreement reached between NAPE and the provincial government.
The Executive Director of the Employers’ Council believes that a no-layoff clause is “exceedingly dangerous.”
Richard Alexander says the clause limits the province’s ability to address a worsening situation.
He says it handcuffs the province’s ability to deal with lower oil prices.
The only scenarios left if government is unable to adjust the size of the workforce, according to Alexander, is to borrow, or increase taxes.
The St. John’s Board of Trade says the no-layoff clause will cost the province for generations to come.
He says while the quarter of a billion dollars to be paid out to NAPE employees—as outlined in a new tentative agreement—is expensive, it will save the province in the long run.
Tentative Severance Payout Earned, Not a ‘Signing Bonus’: Premier
Premier Dwight Ball says he doesn’t see a severance payout mentioned in the tentative deal with NAPE members as a signing bonus.
Ball says he views the cash as an earned benefit and he suggests the promise of a severance may have been seen as an incentive to hopeful employees.
The agreement, which is not ratified, dictates every government worker with at least one year of service will be paid out severance this year.
Each eligible worker will receive a week’s wage for every year of service up to 20 years.
Ball says negotiating the elimination of severance is nothing new.
Ball says he doesn’t see the payout as a signing bonus rather an earned benefit and he insists many other jurisdictions are doing things this way. He reminds that the deal it’s not yet voted on by union members.