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Nice work if you can get it |
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Written by Lethbridge Herald
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Tuesday, 02 December 2008 |
It pays to work for government.
In fact, a new study by the Canadian Federation of Independent Business has found it pays considerably better than the private sector.
The study released Tuesday by the CFIB indicates wages paid by the federal government to its employees are 17.3 per cent higher than what private-sector workers in equivalent jobs are earning. The report, entitled “Wage Watch: A Comparison of Public-sector ad Private-sector Wages,” shows there’s also a sizable wage gap — 10.2 per cent — between comparable provincial government jobs in Alberta and those in the private sector.
The CFIB’s research, based on 2006 census data, indicates that, on average, the annual pay of provincial employees studied is $56,654 compared to $51,419 in the private sector, a difference of more than $5,000. And that doesn’t include additional non-wage benefits such as pensions, insurance benefits, etc. When those are factored in, the gap widens to a whopping 41.7 per cent between the federal public sector and the private sector, and to 27.6 per cent between the public and private sectors in Alberta.
The wage gap also exists at the municipal government level, where, across the country, employee wages are 11.2 per cent higher than in the private sector. Throw in paid benefits such as employer pension contributions and health-care premiums and the gap grows to 35.9 per cent.
Danielle Smith, CFIB’s Alberta director, says instead of raiding its savings to make ends meet as oil revenues plummet, the province needs to get its spending under control. The CFIB study makes it clear spending on public-sector workers is a large part of that.
The number of public-sector employees in Alberta has grown by 21 per cent since 2001-02, climbing to 30,541 from 25,225. In the meantime, provincial spending on salaries, wages and benefits has mushroomed 89 per cent to more than $2.7 billion.
The CFIB points out the wage gap makes it difficult for smaller businesses to compete with the public sector for qualified employees. It also means more money coming out of the pockets of taxpayers to finance government payrolls.
Such wage and benefits gaps between the public and private sectors are not only bad for taxpayers, but bad for local economics, says the CFIB, whose recommendations include firm actions by governments at all levels to keep spending down, even to the point of freezing wages or cutting staff to avoid tax increases.
There’s no question a tighter grip on spending is important with the economy taking a dip. And it’s important for government, at every level, to lead the way in that regard.
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