October 9, 2014
Ottawa
Check against delivery
Good morning.
Thank you for joining me today.
I doubt I have to explain to many of you what the role of the President of the Treasury Board entails within the Government of Canada.
To be brief, my job is to make sure the federal government in managed in such a way that Canadians benefit from programs and services available to them, and that these programs and services are run in an efficient and effective manner.
With this in mind, I would like to speak to you about my experience in cultivating an innovative, effective, accountable, and modern federal workforce.
One that is able to face the changing demands of Canadians and the world.
The economic recession of 2008 saw the globe struggling to maintain economic stability.
Few were left unscathed.
Canada, under the leadership of Prime Minister Harper, managed to weather the storm.
True, we were in a solid economic state as the economic downturn began, but we sustained our stability through strong fiscal management and a focus on finding the most efficient and effective ways to run the country.
We adapted.
In doing so, our Government changed the culture of spending into a culture of restraint.
Our restraint was targeted.
We did not cut funding for health care or education.
We did not reduce transfers to other levels of government.
We did not skimp on the programs and services Canadians rely on every day.
Our restraint came from within.
We controlled our own spending
We cut our own direct program spending.
We found efficiencies and redundancies, and in doing so, reduced our back-office expenditures.
In 2012, I led the effort that involved putting billions of dollars under the microscope and, in doing so, found the best ways in which to make the federal public service innovative, effective, and accountable. Over 650 restraint proposals were put forward and debated. We wanted to safeguard necessary frontline services, but find ways to do better with less.
The result is that, instead of facing a $13 billion deficit next year, the Canadian government's finances will include a $6.5 billion surplus. This leads our major trading partners in fiscal probity.
Was this easy? No. Budgets do not balance themselves. But, through a focus on making government's back office leaner and more accountable, it was possible.
But the job involves more than just restraint. Instead what I am going to speak to today is my experiences in cultivating a modern and high-performing federal public service.
I believe Canada's federal public servants are the best in the world.
I believe the public service has a desire to provide Canadians with the programs, services, and help that are needed in a country so vast and diverse.
Time and again we have seen the results.
Recently, thanks to the dedication of the team working to unlock the secrets of the Franklin Expedition, we are filling in missing pieces of our own history.
Or take for example, Renée Jolicoeur, recently presented the Outstanding Achievement Award by the Prime Minister at the Public Service Awards of Excellence.
Ms. Jolicoeur launched the pay modernization and consolidation initiative which is expected to save almost $80 million a year when fully implemented.
Technology is not only changing how we operate in the back-office, it's also helping us provide better services to Canadians.
For example, the Department of Fisheries and Oceans team at the Bedford Institute of Oceanography designed, built and implemented a new tide gauge to measure the sea water level.
This new measuring technology allows them to get more accurate measurements and to get the data home in real time so everyone can make use of it faster.
Instead of asking for a big capital investment, the team at Bedford built an economical solution using off-the-shelf materials, making the new gauge cheaper to maintain than previous tools.
These are examples of how the federal public service is embracing a culture of fiscal restraint and innovation and applying this attitude to its everyday work.
The attitude of innovation and excellence needs to be built into the public service from the ground up, and from the top down.
I want to see a motivated, competitive and modern federal public workforce.
I want to see a federal public service that meets, and exceeds the expectations of Canadians.
Unfortunately, we too often hear of the negative side of the public service.
We hear of the absenteeism that not only affects employees, but taxpaying Canadians as well.
We hear of employees being promoted without merit, or talented employees being left behind.
These stories affect everyone – employers who are trying to manage their teams well, employees whose morale is dropping, and the taxpayer, who wonders where their money is going.
Let me be clear, I do not believe the majority of public servants act this way.
I do believe we have a talented and committed public service that aims to provide the best services to Canadians.
But I also believe we need to address some of the issues that are hurting our federal public servants.
To this end, I have been examining the total compensation of federal employees to ensure they are aligned with other public- and private-sector employers. This means examining total compensation, not simply wages.
Many of the solutions are common sense.
For example, I negotiated with public service unions to eliminate severance paid out upon retirement or resignation.
You heard me right. Employees who voluntarily departed the public service had been paid severance, a measure meant to protect individuals when they have been laid off or eliminated for reasons not of their own choosing.
By eliminating this practice, we are expecting to see on-going savings of roughly 500 million dollars annually.
Finding financial efficiencies doesn't necessarily modernize the public service and its practices on its own.
I have been President of the Treasury Board for three and a half years. During that time I have talked to a lot of public servants at many different levels.
I remember asking a manager of a program why he thought his program was so successful.
He told me that the people who got the contributions really liked the program. That's not the kind of performance measure that I was thinking of! I wanted to know how Canadians were seeing a direct benefit.
You can see why I found this to be a problem.
This Government should be committed to providing the best services possible at the best value for money.
And I cannot, in good conscience, continue to fund a program that does nothing more than hand out money with little to no tangible results for Canadians. So I have been making changes, with the cooperation of all my Cabinet colleagues.
And I believe my changes to the business of the public service, as well as my efforts to modernize the public service, have been fair, reasonable, and in the best interests of employers, employees and the Canadian taxpayer.
Let me give another example:
I have said that a strong economy depends on sound fiscal management within the public service.
But without a workforce that is proud, and excited to come to work every day, my work will have been for nothing.
I have repeatedly spoken about how the federal public service needs to operate in a more efficient and effective manner.
By taking a page from the business world, we are moving towards an improved Performance Management system. In other words, telling employees what is expected of them, and measuring performance.
We already have such a system in place for executives, but now we are implementing a consistent, comprehensive approach for all federal employees.
Our Directive on Performance Management better equips our organizations to manage employees' performance across the spectrum.
It establishes performance expectations that clearly identify what the employee is expected to achieve and how they are expected to achieve it.
This Directive will align an individual's work with organizational goals and priorities.
It includes recognizing excellence in a timely manner; ensuring good workers have an opportunity to become great workers.
It also will be incumbent upon managers to deal effectively with poor performers.
This will go a long way in improving the morale of our government employees, and I hope, make them proud to be a part of the public service.
I feel as though the Directive on Performance Management is a fair and reasonable expectation of government employers and employees, while at the same time, ensuring a high value for tax dollars.
I have been fair and reasonable in all my dealings with the public service and the unions that represent them.
This has been my goal and priority throughout the negotiation process.
Case in point – the supplemental health care coverage for federal retirees.
Previously, the Canadian taxpayer covered the lion's share of the cost of the voluntary supplemental health care coverage retired public servants could opt into.
The cost-sharing ratio was 75:25.
This is unfair.
Canadians, who work hard, many of which do not have health care plans at all, were footing the bill.
In order to fix this issue, I proposed equal cost sharing of contributions to the Public Service Health Care Plan, meaning a 50:50 funding system.
While this measure indeed will save 6.2 billion dollars, the negotiated agreement reached between the Government, bargaining agents and representatives of federal public service retirees ensures fairness across the board.
For instance, we are protecting low-income pensioners by not subjecting them to the contribution increase.
In addition, the annual deductible will be eliminated, meaning members will no longer have to pay the first $60 for single coverage, or $100 per family per calendar year.
And, we increased mental health benefits, helping plan members receive the care and support they need.
This was a fair solution for all.
This was a reasonable solution for all sides.
The changes to the Public Service Health Care Plan mean it will remain sustainable and affordable for current public servants, retirees, and the Canadian taxpayer.
This is the same manner in which I am approaching the current round of negotiations.
A healthy, strong, high-performing public service can only be achieved if its employees are also healthy, strong, and high-performing.
Which is why I have proposed modernizing the Government's sick leave and disability management system.
The current system has remained virtually unchanged for almost four decades.
Meanwhile, the world around us has changed – the nature of work, the makeup of the workforce, and the modern understanding and recognition of illness, particularly the effects of mental illness.
Almost 90 per cent of Canadian employers provide a short-term disability plan – the federal government does not.
In fact, there is no equivalent system within the federal government.
This is why I am proposing a brand new plan that gives employees timely access to case management, rehabilitation, and return-to-work services.
As stated in Budget 2014, the Government of Canada's specific policy priority in this round of negotiations is to implement a disability and sick leave management system that is modern, comprehensive, and responsive to the needs of all employees.
This proposal has not come out of the blue.
Let me tell you a story.
Earlier this year, I was at an event to raise awareness around the issues that affect people with mental illnesses.
A woman approached me, and identified herself as a public servant.
She told me how happy she was that I was taking the issue of mental health in the workplace seriously, and thanked me for tackling the issue.
This proposal will help people like her.
Here's another problem with the status quo: As stated in Budget 2014, roughly 65 per cent of the federal workforce has not accumulated enough sick leave days to cover the 13-week period needed before becoming eligible for long-term disability benefits
In fact, 25 per cent of employees have fewer than 10 days of banked sick leave.
Many, especially new and younger employees, have no banked sick days at all.
As a result, some employees may face income loss and financial hardship during prolonged periods of illness.
Nor does the federal government have an effective case management system to support early, or timely, return from illnesses.
On average, public service employees take approximately 18 days per year, in paid and unpaid leave.
This is unsustainable for any employer looking to run a high-performing and productive workforce.
Team members are required to take on extra work for indefinite periods of time, or the work simply isn't done.
When we fail to act on these types of issues, morale can be impacted, as can the quality of work they produce.
This model is failing our employees, and in turn, failing Canadians.
And so it is time to fix this inefficient and outdated system.
Employees need a system that supports them and Canadians deserve to receive the best value for their tax dollars.
As I mentioned, my proposal includes short term coverage, and the tools needed to have public servants returning to work at an appropriate time through robust case management.
This proposed plan would also provide support for new and emerging health issues such as mental illness, which today accounts for more than half of all disability claims among employed Canadians.
This is a fair proposal.
It is reasonable, and it is efficient and effective.
My proposal for a modernized sick leave and disability system is at the heart of these negotiations, and I remain committed to a fair and reasonable outcome.
I have been pleased to see that union leaders – after some initial reluctance – have come to the table to hear the government's proposals and to offer reactions.
I am genuine when I say that I want to work with bargaining agents to create a sick leave system that works for both public servants and taxpayers.
It's probably fair to say that union leaders and I won't see eye-to-eye on everything, but I do want to impress that we are always listening when they speak on behalf of their members.
I am glad bargaining agents are engaging in the discussions and voicing their concerns. This will lead to proper dialogue, and to a negotiated settlement.
But I will stick to this one principle; the taxpayer will not be forgotten.
I will be fair, reasonable, and negotiate in good faith.
Together with the bargaining agents, I have full confidence we will reach a deal that is balanced between the interest of public servants and the Canadian taxpayer.
I need the union bargaining agents to continue with me as partners at the negotiating table, with open minds, and ready to seriously discuss the future health of the public service.
The Government side will maintain its professionalism and dedication to equitable results for all parties.
I assure all involved, I have been listening, and will continue to listen.
I am hopeful for success.
Canadians expect – and deserve – a modern, high-performing, and affordable public service.
Daily, Canadians rely on our government institutions for vital programs and services.
If the public service is to continue to meet the needs and expectations of Canadians, not just today, but in the years ahead, it must move forward.
It must modernize.
It must become more efficient, effective, and accountable.
Which is why I have called upon public servants to challenge the status quo and the expected way of doing business.
I have asked them to look at their work and their workplace and to rethink what they do.
I believe Canadian federal public servants can provide the best services to Canadians in a sustainable manner.
I am confident we can build on our recent accomplishments to give Canadians not only the type of government they expect but the type of government they deserve.
Thank you.
