Workforce Adjustment Strategy Announced

Loyola Sullivan, Minister of Finance and President of Treasury Board, today announced in Budget 2004 a Workforce Adjustment Strategy for the public service of Newfoundland and Labrador.

The provincial government is implementing a multi-year financial plan to address the serious fiscal condition of the province. A part of this plan is to achieve a reduction of approximately 4,000 positions in the public service over a four-year period, which will be realized mainly through attrition and retirements. The plan lives up to government�s commitment to avoid massive lay-offs.

The minister reiterated that this plan is necessary as a result of the dire fiscal situation of the province and government�s responsibility to provide services to the people of Newfoundland and Labrador at costs they can afford. Even with the measures taken in Budget 2004, the province is still incurring the highest cash deficit in its history.

In order to minimize the impact of this plan on public service employees, the government will implement a Workforce Adjustment Strategy. The main element of this strategy is to use the retirements and natural turnover of the public service workforce to minimize the number of people who are affected by position elimination, and to maximize the re-employment of people whose jobs are directly affected.

"Approximately 6,000 positions are expected to become vacant over the next four years due to retirement and natural turnover. By starting now, we are providing sufficient time to departments, boards and agencies to reduce the size of the workforce, primarily through attrition," said Minister Sullivan.

Elimination of positions will be conducted so as to minimize impacts on the delivery of public services. Not every vacated position will be eliminated, as some people who retire will have to be replaced, as their positions are vital to the delivery of public services. Normal retirements and resignations during subsequent years will also give the public sector room to achieve savings.

By spreading the reduction of the public service over the next four years, the opportunity to minimize the impact through attrition and retirements is enhanced. Government�s budgetary requirements for the coming fiscal year will result in the reduction of approximately 400 bargaining unit positions within the provincial public service throughout the calendar year. This number includes bargaining unit positions that will be affected as a result of consolidation of both health boards and school boards.

Over the next four years, government expects 1,500 positions to be vacated each year through retirements and natural turnover. Government will use every opportunity to redeploy those individuals who have been displaced.

As part of attrition management, the Public Service Commission will establish a Clearing Centre which will coordinate the process of redeployment. Information on jobs that need to be filled in departments will flow to the Clearing Centre, and affected employees who are eligible for priority consideration will have an opportunity to fill these jobs if they meet the qualifications.

Additionally, affected employees will also have access to services under the Employee Assistance Program of the Public Service Commission and, for those people who wish to seek work outside the public service, outplacement services will be available.

"We have made every effort to deal with our inherited financial situation in a manner that minimizes impact on the people of the province, including our public service employees," said Minister Sullivan. "We are making every conceivable effort to ensure that the individuals who have been impacted today will have the necessary supports."

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

2004 03 30                                         3:20 p.m.