Provinces fail to reach deal with Ottawa to enhance CPP
OTTAWA — The federal and provincial governments failed to agree on a deal to enhance the Canada Pension Plan (CPP). Some provinces want to boost payouts by obliging workers and employers to make higher contributions. But the feds said asking people to pay more when the world economy is still fragile makes no sense. But Ontario will find a solution to bolster retirement savings — which will likely mean an Ontario pension plan, according to provincial finance minister Charles Sousa.
Auditor finds OPG salaries, pensions, bonuses push up Ontario’s electricity rates
TORONTO — Salaries, pensions and bonuses at Ontario Power Generation (OPG) are “significantly more generous” than for comparable positions in the civil service and have a financial impact on the cost of electricity, according to auditor general Bonnie Lysyk. OPG has cut staff by 8.5 per cent but increased the size of its executive and senior management group by almost 60 per cent since 2005, said Lysyk in her annual report. “The employer-employee contributions ratio at OPG has been around 4:1 or 5:1, significantly higher than that 1:1 ratio” in the public service. For more on this story, see the Jan. 27 issue of Canadian HR Reporter.
Canada Post phasing out door-to-door delivery to cut big losses
OTTAWA — Canada’s postal service will phase out urban home delivery within five years and hike the cost of postage stamps to try to stem soaring losses. The government-owned corporation reported a 2013 third-quarter loss of $109 million before tax. It must also deal with a $6.5-billion deficit in its pension plan. About 5.1 million urban households get door-to-door mail delivery. This will be replaced by community mail boxes. Canada Post employs around 55,000 people and the changes will involve a cut of 6,000 to 8,000 staff, mainly through attrition.
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