The Canadian Federation of Independent Business (CFIB) says governments across Canada should follow New Brunswick’s lead and begin reviewing their public sector pensions.
“We’ve been shining a light on the massive cost of public sector pensions for years knowing full well they’re unsustainable,” says Catherine Swift, CFIB president. “New Brunswick’s bold step to dig deep into the issue is what we need to see happening across the country.”
Swift says the CFIB is pushing to bring fairness to the system and close the gap between public and private sector pension offerings. She says particular attention needs to be paid to the DB plans still common in the public sector. “Longer life expectancies, market turmoil and unfunded liabilities make clinging to these a recipe for financial disaster.”
The organization lauded New Brunswick’s recent announcement that it will review pensions within the context of overall public sector compensation for the public sector and how this compares to the private sector.
“Looking at this piece of the puzzle with an eye on the bigger picture of compensation is exactly what CFIB has been pushing for,” said Leanne Hachey, CFIB’s vice-president, Atlantic. “After all, this isn’t just about pensions, it’s about the widening gap between what the public sector offers—vacation, overtime, working hours, sick time, health and dental benefits, you name it—which is completely out of whack with what most businesses can offer.”
Earlier this year, the CFIB launched a national campaign, Pension Tension, which voices opposition to CPP premiums and offers support for public sector pension reform. Campaign details are available at cfib-fcei.ca/pensiontension.
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