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.