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Feds contemplate claw-back of public servant salaries

OTTAWA (NEWS1130) – The federal government is contemplating a claw-back of public servant salaries.

The move would be part of the government’s plan to update the pay system for civil servants and bring it in line with the private sector.

The proposal would see four per cent of an employee’s salary held back starting on January 1, 2014.

Employees would get their regular pay cheque to start 2014; however, in an effort to modernize the pay system, the government wants to hold back two weeks’ pay for every employee.

Treasury Board President Tony Clement is the government’s point man on reforming public service salaries as the government wrestles with mounting debt. Clement said no decision has been made on the claw-back of salaries, also known as the “payment in arrears.”

The unions have been notified of the idea which they feel would create hardship for employees — something Clement denies.

“A lot of the reforms that I’m perusing — the government is perusing — are related to making it easier for productive civil servants to do their jobs,” said Clement on Global’s The West Block.

Civil servants have been feeling targeted recently with the waves of job cuts, loss of severance pay, hikes to pension payments and eliminating banked sick leave.