Workforce Adjustment Strategy implemented

Loyola Sullivan, Minister of Finance and President of Treasury Board, today announced the implementation of the Workforce Adjustment Strategy referenced in Budget 2004 for the Public Service of Newfoundland and Labrador.

Of the total 331 positions being affected today by the implementation of the strategy, 72 are vacant positions and another 42 are positions that will not be filled when the person currently occupying it retires later this year. Therefore, a total of 217 layoffs are resulting from Budget 2004. Notice has already been given for 22 of these positions, and another 195 notices will be given this week.

With more than 6,000 positions estimated to become vacant over the next four years through retirement and normal attrition, government has committed to make every effort to facilitate an orderly reduction in the size of the public service. The opportunity to achieve this result through attrition and retirements will be maximized by spreading the reduction of the public service over the next four years. In an effort to achieve deficit targets and keep the commitment of no massive layoffs, the government is targeting a reduction of 4,000 fewer positions throughout the public service.

"We are facing the overwhelming challenge of trying to harness our serious financial situation in light of unsustainable deficit projections of $1 billion or more for the coming years. We are working hard to honour the commitments made to the people of this province when we were tasked with the job of getting our province�s fiscal health back on track," said Minister Sullivan. "Because the deficit is so great and because wages constitute such a large portion of our annual spending, the implementation of a workforce adjustment strategy is a necessary measure at this time."

The minister emphasized government�s commitment to provide efficient, modern services to the people of Newfoundland and Labrador at costs they can afford, which is the key to ensuring fiscal health and sustainable public services.

"There will be many instances where positions which become vacant will have to be filled because they are vital to the delivery of public services. As such, retirements and attrition provide an opportunity to replace employees who are leaving of their own choice with employees who have been displaced. We have established support mechanisms for our employees, including a re-deployment centre for positions which will enable displaced employees to have an opportunity for re-employment elsewhere in the public service. Furthermore, we are committed to working with our unions to ensure a smooth and orderly process," he said.

The re-deployment centre will be operated by the Public Service Commission (PSC) and will provide first consideration for available vacancies to eligible employees. Departments and agencies will forward all approved position vacancies to the Commission. Access to the list of vacancy postings will be restricted to those employees who are eligible for priority re-deployment. Employees will identify those positions for which they want to be considered and the Commission will then administer the matching process.

The minister also referenced government�s commitment to being open and honest with all Newfoundlanders and Labradorians regarding the province�s financial situation and the necessary steps required to address it. The Workforce Adjustment Strategy is one of these steps.

Media contact: Diane Keough, Communications, (709) 729-6830

Backgrounder
Workforce Adjustment Strategy

Total Positions Affected     331

Vacant                              72
Expected Retirements        42
Layoffs Already Done         22
Layoffs this week               195

For unionized employees, the collective agreements specify a very clear "bumping" procedure which is normally carried out within 30 days. Bumping will allow qualified employees with more seniority to displace employees with less seniority.

For non-unionized employees and for unionized employees at the end of the "bumping" process: where possible, employees will be asked to work their notice period if productive work is available during the notice period. People who can work their notice period are more likely to have a successful re-deployment experience (see below) which is a key goal of workforce adjustment. In cases of facility closures, or where continued work during the notice period is not possible, employees will not be asked to work their notice period.

All permanent employees who are laid off will have access to the re-deployment centre and the benefits of the Re-deployment Policy. This policy provides special consideration in hiring for public service vacancies over a two-year period.

Eligible employees who are laid off are entitled to severance payments as specified in their collective agreements or in human resource policies. Severance payments will be adjusted or will not be necessary if re-deployment is successful.

2004 05 10                                        1:10 p.m.