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Severance for public servants set out in contracts

Severance for public servants is laid out in their contracts, Treasury Board President Tony Clement said Tuesday in response to a CBC estimate that it could cost $2 billion to lay off government workers in a widely expected round of budget cuts.

Treasury Board President Tony Clement says government bound by agreements

Public service cuts

13 years ago
Duration 10:21
Treasury Board President Tony Clement talks about looming public service cuts and severance packages for federal workers

Severance for public servants is laid out ingovernment contracts, Treasury Board President Tony Clement said Tuesday in response to a CBC News estimate that it could cost more than$2 billion to lay off government workers in a widely expected round of budget cuts.

CBC'sGreg Weston reportedMonday that a worker with a year ina federal government job could get almost six months pay in severance, while someone with 29 years of service would be entitled to 82 weeks of pay in severance.

Clement says it's not surprising that people who are laid off are entitled to severance.

"This has all been collectively bargained and its a contractual arrangement with the union on behalf of the employees, and so well meet those commitments," Clement told Rosemary Barton on CBC's Power & Politics. "Were not going to tear up a collective agreement."

Clement says severance is borne by the department where thecutstake place, sothose costs will already have been taken into account when the government tallies its total savings.

The federal public service has an attrition rate of about 11,000 a year as people retire orleave for other jobs, Clement says. The governmenttries to move civil servants into other jobs for which they're qualified, rather than laying them off, he says.

"It's only if he or she is disinclined to do that, or if they dont have the skill set in any other part of government, that you get into a situation where that person will be let go," Clement said.

The federal budget is set for March 29. The government plans to cut an estimated 30,000 jobs over the next three years.