Office of Human Resources
Workforce Adjustment Program to help government employees (04/03/30)
NB 378
March 30, 2004
FREDERICTON (CNB) - Laid-off government employees will have access to an early retirement program, redeployment or an enhanced severance package, Human Resources Minister Rose-May Poirier reported today.
"As the Minister of Finance has stated in his budget, the government is cutting 750 positions; but by eliminating vacancies where possible, using attrition and an early retirement program, we expect significantly fewer actual people will lose their jobs," Poirier said.
All employees affected by today's budgetary decisions will also have access to counseling services.
"We value our public service workers and the great job they do for New Brunswickers. That is why we are making every effort to minimize the number of people who lose their jobs and why we are committed to assisting those affected employees during their time of transition," Poirier said.
The Workforce Adjustment Program is targeted for employees affected by the budget decisions. The early retirement option will be available to affected employees aged 55 and older while a special bridging option will be available to those aged 50 to 54.
Affected employees who are either not eligible for retirement or opt not to retire must choose to either accept an enhanced severance pay or to be entered into a Redeployment Program.
If they choose redeployment, they will be placed upon the redeployment list for a maximum of 12 months. If a skill match is found for a job available in government at comparable qualification and salary levels, the person on redeployment will be offered the job.
Poirier said the department will be meeting with public service unions to obtain their agreement to offer these Workforce Adjustment measures to their affected members.
The Office of Human Resources will also offer Early Retirement Planning sessions at locations throughout the province, and career counseling workshops will be arranged.
04/03/30
EDITOR'S NOTE: A fact sheet on the Workforce Adjustment Program is attached. MEDIA CONTACT: Dan Toner, Office of Human Resources, 506-444-5288.
Workforce Adjustment 2004
We value our public service workers and the great job they do for New Brunswickers. That is why we are making every effort to minimize the number of people that lose their jobs and why we are committed to assisting affected employees during their time of transition.
The Workforce Adjustment Program is a corporate management tool we have created to minimize lay-offs by offering affected workers early retirement, redeployment or a severance package. We are also making a variety of counseling services available.
Scope of Impact
Workforce Adjustment is a targeted program available to employees in Parts I, II and III impacted by the government's budgetary decisions. It does not apply to Part IV (Crown Corporations) or the officers and employees of the Legislative Assembly.
Categories
There are three categories in the program:
Category 1 (Early Retirement)
The early retirement option will be offered to affected employees currently aged 55 and over or who will turn 55 by March 31, 2005. Participants will be able to retire on an unreduced pension because the actuarial adjustment for retirement before 60 will be waived. They may receive an enhanced retirement allowance as well and will be allowed to continue to participate in the health and dental plan for active employees and group life insurance for up to three years or until they reach age 65 (whichever comes first) provided they pay the full cost of the premiums. All retirements under this program must take place within two months of the program being offered or within one month of the employee actually turning 55. This time period can only be varied by the deputy minister.
Category 2 (Bridge to 55)
Affected employees aged 50 to 54 will be able to participate in a program that bridges them to retirement at age 55. They will receive the same waiver of the actuarial adjustment as category 1 but will also receive an enhanced severance payment based upon their years of service, which can be pro-rated and paid out over time, until they reach age 55 and start receiving their pension. They also may continue to participate in the active health and dental plan and group life insurance program under the same conditions outlined above for category 1.
Category 3 (Redeployment or severance)
Affected employees under the age of 50 may choose either redeployment or an enhanced severance package. They must make this decision within 30 days of being informed that they will be laid off.
Redeployment
If they choose redeployment, they will be placed upon the redeployment list for a maximum of 12 months. Those on the list will receive priority consideration for placement in job openings. If a skill match is found at comparable qualification and salary levels, the person on redeployment will be offered the job.
During their time on the redeployment list, individuals may continue their coverage under the group life and the active health and dental plan provided they pay the full cost of the premiums.
Enhanced Severance
If they choose to receive the enhanced severance package they forfeit any right to redeployment but will receive severance benefits based upon their years of service. The severance can range from two weeks pay for someone with less than a year of service to a maximum of 90 weeks pay for someone with 35 years service. No continuation of participation in group life, health or dental programs is possible.
Employee/Family Assistance
All affected employees will have access to counseling services including for emotional support and financial counseling.
In addition, they can take advantage of Early Retirement Planning Sessions to be offered through the Office of Human Resources at various provincial locations and career counseling workshops will be arranged.
Consultation/Agreement with Public Service Unions
The Office of Human Resources will be meeting with public service unions to obtain their agreement to offer these Workforce Adjustment measures to their affected members.
04/03/30