Manitoba government proposes 5 days of unpaid leave for thousands of employees to cut costs

The Manitoba government wants about 6,250 civil servants within core government departments to take five days of unpaid leave to cut costs during the COVID-19 pandemic.

In a letter Tuesday morning to employees, the government asked that they take the five days off to avert temporary layoffs.

The proposal, along with details on which government employees are eligible, would be cleared up at the bargaining table and staff meetings, says the letter sent on behalf of Michael Richards, deputy secretary of cabinet, and Charlene Paquin, civil service commissioner.

The government is asking for support for its "top to bottom" strategy, which would affect deputy ministers, non-unionized executives, staff who belong to a union and those who don't. 

"In our view, this type of approach offers clear advantages," the internal memo says.

"By enabling — to the extent possible in terms of participation — our collective ability to much more broadly and equitably shoulder a relatively modest financial impact."

Half of core civil servants affected

Half of the government's nearly 12,000 civil servants within core government would be asked to take unpaid days off under the plan.

The memo says the five days off must be taken in the 2020-21 fiscal year. It proposes employees could mainly reach the target between Christmas and New Year's Day, providing it is "operationally possible and agreeable."

The government previously warned of much deeper labour cuts as the economy took hits from closed non-essential businesses and inflated health-care costs. 

In April, the province asked publicly funded bodies to draw up workforce-reduction scenarios over four months of 10, 20 and 30 per cent, but settled on a 2.2 per cent cut in payroll costs over the entire year. 

Within core government, the province decided on a 0.8 per cent reduction in payroll expenses, or $9.5 million, which Tuesday's memo describes as a "very modest overall reduction." 

Manitoba Liberal Leader Dougald Lamont says that's nothing to celebrate.

"There was a point where the Premier was promising to put 10, 20 or 30 per cent of excrement in your ice cream and now it's going to be less — well, it's still lousy," he says. "Let's not pretend that this is a good thing, it's not."

Lamont is calling on Brian Pallister's government to rationalize the payroll reductions he's demanding by opening up its books. The public doesn't know how much money the province is spending or borrowing during the pandemic, he says.

"All we've heard from the Premier is that we have to cut, and he hasn't justified any of it," he said. 

The Manitoba Government and General Employees Union has one week to tell government if it likes the proposal, president Michelle Gawronsky says.

Before then, the union will ask its membership for advice, and Gawronsky has some burning questions.

"We don't know what departments? Who are they looking at?" she said.

"If our members do agree to do this, does that guarantee there won't be any layoffs then within civil service and Manitobans can enjoy these services that our members provide?"

Essential workers exempt 

While details are still being ironed out, Central Services Minister Reg Helwer said in an email that several employee groups aren't eligible: essential employees involved in the pandemic response, those working in institutional settings, seasonal workers and employees who already chose to take at least five days off voluntarily.

He described the government's plan as an "all-hands-on-deck approach," from the deputy minister down.

Pallister is forecasting a $5 billion deficit this fiscal year, stemming from $2 billion in increased expenditures and a $3 billion revenue shortfall. 

The province has asked public sector bodies to defer non-essential spending. Among them, Manitoba Hydro is temporarily laying off as many as 700 employees.

NDP Leader Wab Kinew says the government is creating a false choice while telling civil servants they must choose between layoffs or pay cuts.

"The government has tried to box these workers into a corner and say that they they have to accept having less money, which we know is only going to prolong the recession," Kinew said, proposing no reductions to the public service and more financial aid to bolster the private sector.

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