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Suggested on May 17, 2016 by Account

Total Votes: 2

Up Votes: +2

Down Votes: 0

The GNWT could potentially save somewhere between $10 million to $15 million (or somewhere around 150 full time PYs) by implementing an opt-in program for employees to take one day of deferred leave bi-weekly.
From a financing perspective, it would work similar to the current deferred leave program, but without the cost needed to fill the employees' position while they are on leave. A comparison is below:

Comparison: GNWT Deferred Leave Program
....Hours worked: 4 years
....Hours taken as leave: 1 year
....Portion of hours worked to pay for hours taken as leave: 20 per cent
....GNWT savings: $0/annum net (position filled for term while absent)

Proposed: Opt-in bi-weekly employee deferred leave program
....Hours worked: 67.5 hours
....Hours taken as leave: 7.5 hours
....Portion of hours worked to pay for hours taken as leave: 10 per cent
....GNWT savings: $8,775 per employee per annum

The incentive for employees is based on diminishing returns, namely that the top portion of their salary is taxed at the highest tax bracket they qualify for, so it would not have a major impact on their bi-weekly pay, and could even help with retention to let employees enjoy more time in the beautiful environment up here.

The incentive for the employer is that it significantly lowers HR costs. If it were implemented as a mandatory program, it could save somewhere around the ballpark of $50 million, but would likely have a strong push back from the Union of Northern Workers (UNW). If it were implemented as an employee opt-in program, the UNW would not oppose it, and in light of the current fiscal situation and potential HR impacts, the UNW and regular MLAs would likely support it as an alternative.



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