The premium wages and generous benefits Canadian public servants enjoy compared to the private sector is one area where governments could look to reduce costs following the recession, according a study conducted by the Fraser Institute. .“At a time when governments across Canada are facing serious fiscal pressures as a result of the recession, bringing government sector compensation in line with the private sector would help reduce costs without necessarily affecting services,” said Fraser Institute senior fellow Ben Eisen in a Tuesday press release. .The study said government employees across Canada were paid 31.3% higher wages on average than private sector workers in 2021. .Even after adjusting for differences such as age, gender, education, tenure, type of work, industry, and occupation, government employees were paid 8.5% higher wages. .Wages are one part of overall compensation. Canadian government workers enjoy more generous non-wage benefits. .The study said 86.6% of government workers were covered by a registered pension plan in 2021 compared to 22.9% in the private sector. Of all workers covered, it said 90.6% of public servants enjoyed defined-benefit pension plans, compared to 39.9% among the private sector. .Public sector workers retired 2.4 years earlier on average than Canada’s private sector employees. .The study went on to say government workers were absent from their jobs for personal reasons more often than the private sector — 14.9 days compared to 9.8 days. Public sector employees were about five times less likely to experience job loss than those in the private sector — 1% compared to 4.8%. .“All levels of government in Canada — municipal, provincial, and federal — must find ways to reduce costs following the unprecedented spending and borrowing we’ve seen recently,” said Eisen. .“Closing the compensation gap between the government and private sectors would reduce costs and help governments move towards balancing their budgets.”.The Canadian Taxpayers Federation (CTF) said Sunday it's wrong for the Canadian government workers who want to go on strike to demand extra perks. .READ MORE: Federal union demands 47% wage increase, ‘social justice fund’.“Canadians can’t afford to keep paying more and more and more,” said CTF Federal Director Franco Terrazzano. .“The federal government has to draw a line and say no to out-of-touch union demands.”
