------- Feds should reduce employees
The Canadian Taxpayers Federation has released an analysis of soaring federal government labour costs and the need for savings as the government faces an unprecedented massive deficit.
The reality is we couldn’t afford the government we had before the pandemic, and we definitely can’t afford it now. The sooner the government begins to live by the same rules that everyone else lives by, the less painful it will be in the long run.
Between 2014 and 2018, federal government labour costs grew by 17.6%; population growth was just 4.9% and inflation was just 7.2%. As of 2020, federal government labour costs are about $51.5 billion per year for 368,000 employees.
A 15% reduction in the total employees paired with a 15% average salary cut for remaining employees would save $14.3 billion.
Outside of government, millions have lost jobs, taken pay cuts, and seen their businesses go bankrupt. Inside government, not even modest pay reductions, and, in some cases, unions are negotiating significant pay raises. This is out of touch with the new fiscal reality, and completely unfair to the taxpayers paying the freight.
Aaron Wudrick, CTF Federal Director