Open Government needs to create serious venues for addressing really tough and "NOT POLITICALLY CORRECT TO TALK ABOUT" issues facing Canadians. We need to bring these issues out into the open from their "neat little hiding places", where they've been swept under the rug so to speak. For example: There is a very large Compensation/Benefit Gap issue in Canada between Public and Private Sector workers. This tends to create a two-class system. Why is this issue not being addressed or openly discussed.
Study after study shows that public sector worker pay is 10% - 20% higher than private sector worker pay for the same type job. And the total compensation gap does not stop there. Public Sector workers all have defined benefit pension plans whereas the average private sector worker does not even have a pension. When we add in dental plans, prescription drug plans, number of sick days taken per year, vacation days available per year, the disparity becomes embarrassing. Public sector workers in Canada are retiring younger and younger on full pensions adjusted to inflation with benefits while private sector workers in Canada are working longer and longer past 65 with no pension and no benefits. This is insidiousness. Private sector worker tax dollars are taken to enable public sector workers to retire earlier and earlier while they (private sector workers) in turn have to work longer and longer. Something is very wrong with this picture. For there to be any kind of success with the "Open Government" initiative, the these kinds of tough issues and topics MUST be tabled and openly discussed in a moderated environment - objectively, factually and peacefully.
1. Set up independent study group (not all from pubic sector and academia but rather selected on basis of population - i.e. ~35% of workers in Public Sector and ~65% in Private Sector so this is split of study group selection. The ~65% from private sector can't all be from near-government institutions like banks etc. Their selection must represent Canadian industry employment demographics).
2. Make available stats can information and assistant to this group
1. Group submit finding and submit recommendations/report after 18 months with monthly progress updates to Sponsor
2. Publish findings and set of remedial action recommendations for Canadians to review on website
3. Legislative action plan to eliminate Public Sector - Private Sector wage, pension and benefit gap for jobs of similar types / values
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Submitted by Mario Panacci on April 15, 2022 - 5:55 PM
To net out what my original thoughts I believe this is an issue that all Canadian employers public or private will need to address in the next decade. As workers in the middle wage/pension scale we all share a need to be taken care of in our retirement years. Our employers made us a promise when they hired us. They promised to provide us with a fair and respectable workplace and compensation. That promise doesn't end when we retire. Some of us will retire on just CPP and OAS, others will include private RRSP income and some will have public pensions and the other incomes. It is critical that employers in Canada in all sectors work with our elected leaders to put in place programs where the delta between retired employees isn't too great between sectors. Failing to do so will create social community unrest affecting every Canadian. This is not an issue workers with average income can address. This is a critical issue executives and elected leaders in both public and private sectors need to address. If Canada fails to treat works fairly in retirement years their children and their children will lose trust in all employers and this will negatively affect all Canadians and employers. The employee employer trust will be broken so it won't matter if some of us are well off because we'll all suffer if some of us live in poverty. I think balance and ensuring gaps are small in compensation this the only path forward and this task sits with our employer executives and elected because they are the only people that can make the changes needed. Thanks for considering my views - respectfully Mario Panacci - a proud working class Canadian!
Submitted by Amused User on December 22, 2021 - 9:44 AM
While I think it is interesting that government pays more than private on average, the bigger question is where has the bar been set over the years.
In olden times the average corporate C-Suite was paid 50X the employees average salary, now its closer to 200-250X the employee salary.
This is without much change to the standard workload just a different incentive program to reduce benefits in order to hit a performance bonus, and the shift to remote or digital in Covid times.
At the same time as corporate makes large profits in Covid these profits aren't relayed to the workers, we can look at Kelloggs union fight in the US for a 3% increase in wages while they are making record breaking profit.
If the marginal return of an employee wasn't there they wouldn't hire an employee length of service matters less in the private sector, each employee is there to cover the wage of their labor and excessive profit is channeled to a shareholders.
The problem lies in that this becomes a systematic application applied across the private sector which to me explains the gap we see in wages.
If the government salaries historically were lower with better benefits to make it up, then corporatism results in cuts to the cost of the base laborer for the sake of the shareholder and C-Suites this shows in the gap we see.
That leaves two choices for the laborer to stay in the private sector or to work in the public sector and get treated better.
It's a sad truth that the corporate ladder is broken its easier to jump through rungs by switching jobs in private than to negotiate a raise, there are good youtubers who explain that well like Joshua Fluke. This is especially true when new employees are paid more in some companies than older veteran employees due to inflation and simply not asking for a raise, which the employer may not give automatically it is only when they ask their new comrade their salary that they realize that.
I feel the governments compromise of a step system to wages and that security is the tradeoff to a risk averse person no need to settle or negotiate, if you want to take that risk of high rewards high stakes and the off chance of getting fired to be treated better, then the private sector is for you.
As long as you keep aware that an employer doesn't care for it's employee family and you work there to get paid you will be better off. The government on the other hand offers a trade off, they will get employee loyalty because they are stable. The net result over the years is that governments get loyal workers slow bureaucracy and stability.
The net result of corporatism and crony capitalism over the years is lower worker wages, higher productivity by quotas, higher shareholder returns at the cost of worker benefits, with high variance of income and return based on where you are on the ladder.
It makes you climb while the other helps you to climb. Picking your path simply comes down to what is more important to you a stable career to raise a family and going home at the end of the day with deployment options anywhere in Canada. Or cut throat competition for the best salary wages and living for your job with opportunity to jump the rungs to anywhere your talent is appreciated. The choice is up to Canadians to decide, which like Europe leads the type A's to corporate America for the highest salaries and wages at the C suite tier and leaves the employees and mid management behind. This is where we are in the Public vs Private salary debate
Submitted by karen kramer on June 13, 2021 - 1:17 AM
Why is it that Government employees benefit packages exist,and many private sector jobs have none? Everyone pays taxes,regardless of their income but government employees seem to benefit off the lower paid population... I really have a hard time understanding this.Everyone should be entitled to the same benefits of Government Employees,or no one should benefit from it.It is the tax dollar that makes this possible,right?
Submitted by Steve on February 22, 2021 - 11:49 PM
If the gross wage of a government worker is paid by the private tax payers then to arrive at a net wage it would make sense that the private sector taxes also pays government employees taxes and all other benefits gained from that government body employment.
If this is denied then the government body should extend this concept to all Canadians. This is a horrible structure.
Submitted by Greg Stephenso… on February 12, 2021 - 3:03 AM
Thank you for posting this.
Looking at gaps between public and private sector wage, pension, and benefits is important for our long-term success.
It also speaks to quality of life differences. It is telling when looking at retirement age, vacations, etc. Private sector citizens deserve equal opportunity for a positive quality of life.
This does not diminish the value of public sector workers,
But it is important to point out - what resources would we have with out the private sector also?
Submitted by Elizabeth Tayl… on April 22, 2020 - 11:50 AM
It does feel like this gap is widening and it seems unfair . The taxes we pay in the private sector allow people in the public sector to have a life style and benefits that we can not afford for ourselves. It is only getting worse. There needs to be accountability for our tax payer dollars. I value the work that the public sector does on our behalf but it should not break my back.
Submitted by Anonymous on April 05, 2020 - 6:42 PM
The defensive comments here from public sector workers /retirees is so typical of the denial one is confronted with in any attempt to have an open discussion on the subject of private/public sector pensions.
Now, as a 63 year old
Submitted by Alex Machida on June 22, 2019 - 5:51 AM
Submitted by Paul Kucera on April 09, 2021 - 5:56 AM
You are talking about professional positions, people with higher education. Yes, in private sector these positions may earn more than in public sector. However, these jobs are in minority compared to the huge number of general labor jobs in private sector. Laborers earn a lot less and often do not get the benefits like early retirements, indexed pensions, vacations and perks common in the public sector. Laborers pay the taxes to support such benefits. Don't forget that.
Submitted by Chris Jezovnik on May 16, 2020 - 2:31 AM
The examples chosen don't reflect the average Canadian worker. Most do not work for large private corporations. Most do not have titles like "Construction Project Manager", "Engineer" or "Director" in a private utility. Most do not have private pension plans.
Submitted by James Armstrong on April 20, 2019 - 12:20 PM
Submitted by Anthony Sinn on May 18, 2019 - 2:10 PM
Submitted by Thomas Kay on March 22, 2018 - 7:25 PM
Submitted by Anonymous on October 16, 2018 - 5:04 PM
Submitted by Rae Dulmage on March 10, 2018 - 4:34 AM
Submitted by Michael Lucas on March 06, 2018 - 12:45 AM
Submitted by Kevin A. Threader on March 03, 2018 - 2:17 PM
Submitted by Catherine Fisher on March 01, 2018 - 10:27 PM
Submitted by Greg Stephenson on February 12, 2021 - 3:11 AM
Tell this sad story to my wife who spent 6 years in post-secondary school and is struggling in a few dollars more than a minimum-paid job with no pension. She is hoping for a raise but the challenges with COVID probably make this impossible.
There is a clear disconnect with reality between public sector workers and what they have to ‘pay’ to have their rich retirement pensions and the private sector who have so little options.
Let’s be clear - a ‘public sector’ job is a sweet deal and you should feel lucky to have the privilege to be paid at top dollar and have a pension that makes you many times richer than many in the private sector could ever hope for. Please, at least acknowledge how lucky you are vs the many who struggle in the private sector.
Submitted by Gordon Holmes on February 28, 2018 - 10:38 PM
Submitted by Anonymous on March 11, 2018 - 7:06 PM