Executive Council
February 22, 2017
Efficient and Focused Government
Provincial Government Implements Flatter, Leaner Management Structure
Today the Provincial Government announced the continuation of the
implementation of a Flatter, Leaner Management Structure. a detailed review
of departmental structures and management subordinate reporting
relationships has been completed, resulting in the net reduction of 287
management (HL pay scale) level positions from core government.
"We
realize this is a very difficult time for people who are impacted by this
new management structure. These are not easy decisions; however, with our
very serious fiscal situation, they are decisions that had to be made. As a
government, we committed to the people of the province that we would make
core government more efficient and focused - the people of the province will
hold us to that. Today, we are proceeding with a number of actions intended
to create efficiencies in management positions throughout government, which
builds on decisions announced to date to create a Flatter, Leaner Management
Structure".
- The Honourable Cathy Bennett, Minister of Finance and
Minister Responsible for Human Resources Secretariat
Newfoundland
and Labrador currently has the highest average number of public sector jobs
per 1,000 population among provinces. In 2015 the Canadian average was 67,
compared to 94 in Newfoundland and Labrador. The province has also seen
significant growth since 1997 when the average was 78 jobs per 1,000
population.
www.releases.gov.nl.ca/releases/2017/exec/0222n02.pdf
The new
Flatter, Leaner Management Structure will result in the elimination of 287
total management positions, of which 90 positions are vacant. As a result, a
number of positions will be eliminated. Employment will end for employees in
those roles.
Other employees whose positions are impacted may avail
of a restricted, merit-based assessment for remaining positions. This
process will be ongoing for a number of weeks, and will be conducted as
expeditiously as possible. These employees will be notified directly within
a week about their employment status.
The Public Service Commission
(PSC) will provide employee support through the Employee Assistance Program
and the Human Resource Secretariat (HRS) will provide supports to assist
those who will need to prepare for the restricted competitions that will be
taking place as a result of the new management structure, including resume
writing, etc. Departments will immediately work with HRS and the PSC to
carry out a restricted merit-based assessment process, as per the PSC
restructuring policy.
"Today's actions reflect the
completion of the review of management positions within core government.
This will provide greater clarity and stability on government's rationale
around management level positions that remain within core government."
- Minister Bennett
Flatter, Leaner Management is expected to save approximately $20-25
million annually in salaries and benefits. Employees who leave government
regardless of circumstances are entitled to the cash equivalent of their
unused leave time and severance (for those with nine years of service or
more). These costs are already included in government's liabilities. The
only additional one-time cost is related to pay in lieu of notice. While the
actual cost will be determined once all staffing actions are completed,
government expects approximately $15 million will be reflected in salary
expenses in 2016-17 to cover costs associated with pay in lieu of notice.
Today's announcement represents a 17 per cent reduction in management
positions and corresponds with recent departmental restructuring, previous
elimination of 20 per cent of senior executive positions at the deputy
minister and assistant deputy minister levels and the elimination of 31 per
cent of communications positions in 2016.
This initiative is one of
more than 50 outlined in The Way Forward: A Vision for Sustainability and
Growth in Newfoundland and Labrador, available online at
gov.nl.ca/pdf/the_way_forward.pdf. The vision guides Provincial
Government actions to achieve greater efficiency, strengthen the province's
economic foundation, enhance services, and improve outcomes to promote a
healthy and prosperous province.
QUICK FACTS
- The Provincial Government today announced the implementation of a Flatter, Leaner Management Structure, resulting in the elimination of 287 total management positions, of which 90 positions are vacant.
- As a result, a number of positions will be eliminated. Employment will end for employees in those roles.
- Other employees whose positions are impacted will avail of a restricted, merit-based assessment for remaining positions. These employees will be notified directly within a week about their employment status. Departments will work with the Human Resource Secretariat and the Public Service Commission (PSC) to carry out a restricted merit-based assessment process, as per the PSC restructuring policy.
- Flatter, Leaner Management is expected to save approximately $20-25 million annually in salaries and benefits associated with management positions.
- While the actual cost will be determined once all staffing actions are completed, government expects approximately $15 million will be reflected in salary expenses in 2016-17 to cover costs associated with pay in lieu of notice.
- Today's announcement represents a 17 per cent reduction in management positions and corresponds with recent departmental restructuring, previous elimination of 20 per cent of senior executive positions at the deputy minister and assistant deputy minister levels and the elimination of 31 per cent of communications positions in 2016.
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Media contact:
Tansy Mundon
Director of Communications
Department of Finance/Human Resource Secretariat
709-729-6830, 693-1865
tansymundon@gov.nl.ca
2017 02 22 10:40 a.m.