PEI Workforce Renewal Program

March 21 2005 - The Prince Edward Island provincial government has introduced a new Workforce Renewal Program to support its efforts to renew programs and the provincial public service. The program offers incentives to employees to leave government voluntarily through early retirement or voluntary severance opportunities.

According to PEI Premier Pat Binns, the objectives of the program are to reduce spending and renew programs. "The cost and demand for government services have grown to a point where we are now spending more money than we are taking in. We have no choice but to reduce government expenditures and this program will result in significant cost savings over the longer term," he said. "We are seeking fiscal responsibility through Program Renewal."

Premier Binns also said that, in addition to reduced spending, the Workforce Renewal Program will create opportunities to improve the way services are organized and delivered. "It is not enough to simply reduce positions. We must also reorganize and redistribute the work so that our programs are effective, efficient and affordable over the long term," he said. "We must find ways to work smarter and redirect resources to areas where they are needed most."

Provincial Treasurer Mitch Murphy said government chose to offer employees opportunities to leave their positions voluntarily because it is the fairest and most equitable way to treat employees while honouring collective agreements. "Our people are dedicated and hard-working professionals and we value the great work they do. We also recognize that a sustainable government is one that is smaller, smarter, less expensive and able to respond effectively to changing needs," he said. "This program is the first major step being taken as part of our ongoing Program Renewal process to continuously evaluate and improve programs so they remain effective, affordable and efficient over the longer term."

Early retirement is available to more than 500 eligible employees in the civil service, health and education sectors. Voluntary retirement incentives are being offered to employees who have the required years of service and are vested in their pension plans. In addition to regular retirement pay provisions, approved full-time employees will receive a financial incentive of 26 weeks pay under the voluntary retirement option.

A voluntary severance incentive of up to 26 weeks pay is available to employees who are not yet eligible for retirement benefits. Seasonal employees in the Civil Service who agree to terminate their position by April 30, 2005 may also be eligible to receive half of what they earned during their last term of employment.

Employees are eligible for these incentives based on the needs of their employing organization and pension plan. Employee information sessions are scheduled March 22 in Charlottetown, March 29 in Summerside, March 30 in Charlottetown and March 31 in Montague.

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