Government fails to practice what it preaches in tentative deal with public
sector unions

TORONTO, Oct 5 /CNW/ - In a letter addressed to Prime Minister Stephen Harper and Ministers Stockwell Day and Jim Flaherty; the Canadian Federation of Independent Business (CFIB) is calling on the federal government to reconsider their tentative agreement with some major federal public service unions to increase wages by 5.3 per cent over the next three years.

"We are stunned to learn of this tentative deal which is completely contradictory to the messages the federal government has been giving - warning Canadians that we are in an era of modest growth and that we all need to tighten our belts," stated CFIB's president, Catherine Swift. "Are we to understand that the federal public servants who already enjoy a significant wage and benefit premium of over 40 per cent, on average, over their private sector counterparts are being permitted to play by different rules than the rest of us?"

Of particular concern to CFIB is a pre-existing $150 billion unfunded liability in the federal public sector pension and how it will be paid for. Arguing that the wage increase in question will only serve to exacerbate the current situation, CFIB is instead calling for significant limits in wage increases, greater transparency in public sector pensions, increased retirement ages and a much higher contribution from federal employees to their own pension fund.

"If federal public sector wages are not brought more in line with private sector norms, if pension liabilities are not properly disclosed, and if federal employees continue to contribute less than 40 per cent of their pension costs, this will only enhance the growing divide among Canadians," warned Swift, adding that "it is not only a question of fairness, but also one of financial sustainability. This is a very bad precedent to set as negotiations for other levels of government with their unions will also be affected by their actions."

To view a copy of the letter sent to the Prime Minister and Ministers visit: www.cfib.ca

For further information:

To set up and interview with Catherine Swift or for further information contact Adam Miller or Meghan Carrington at 416-222-8022 or via[email protected]