News Release
Office of the Official Opposition

 

 

Termination costs add up to $8 million and climbing

February 2, 2005

Opposition Leader Roger Grimes and Gerry Reid, Opposition Education Critic and MHA for the District of Twillingate-Fogo, say the termination costs of public sector employees has already cost the taxpayers of the province close to $8 million and that number is guaranteed to rise as court challenges have been filed and program renewal approaches.

The termination costs were obtained through a request made under the Freedom of Information Act. While the document does not give the names of employees terminated or their individual cost breakdown as originally requested, it does demonstrate the significant amount of money spent by government on termination packages for employees who lost their jobs in this fiscal year.

"I was very disappointed that government did not include a detailed breakdown of each position," said Mr. Grimes. "If that were the case, we could determine how much the unnecessary firing of the Deputy Minister of Health and the Information and Privacy Commissioner cost the taxpayers of the province. We could also determine how much the taxpayers spent to get rid of people with whom Danny Williams did not want to work. While some of these positions were eliminated through the general budget process, there were many people dismissed because they did not always agree with the Premier, or did not share his political stripe. As a result, the taxpayers of the province are on the hook for approximately $8 million.

I also question what future costs will be associated with terminations. Some of these payments are only projections. There are court cases that are progressing through the Department of Justice from employees who are challenging the termination payments they received. Also, program renewal is just around the corner. How many more positions will be eliminated?"

Opposition Education Critic Gerry Reid said that he was amazed to learn that almost $4 million was paid in termination costs to school board officials involved in government’s ill-thought out and rushed restructuring plan. "Government stated that they would save $6 million from school board restructuring in this fiscal year. It is now obvious that they have already spent most of these savings in termination costs.

"In addition, all 11 board offices have remained open, even though there are now only five boards. Where are the savings? Is this the reason that 1,500 substitute teaching days were removed from the system and spending reductions have been imposed upon individual schools? It is unfortunate that this government did not think about the consequences of their rushed plans. As a result, the school system in this province has lost the benefit of services and materials that were available in the last school year. I also fear upcoming teacher cuts will only make the situation worse next year."

Both MHAs stated that they will be keeping a close eye on the outcome of the court challenges and future dismissals and payments that will be undertaken by government.
 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477