Can increases to address the two years of no net increases to compensation be provided once the two year period is complete?
A9. As with the Public Sector Compensation Restraint to Protect Public Services Act, 2010, which applies to non bargaining employees, catch up provisions to provide compensation increases that retroactively cover the two years of no net increases would not be permitted under collective agreements subject to the Policy Statement. Employers are not to provide additional compensation to replace compensation forgone during the restraint period. To balance the budget by 2017-18, and when factoring in added interest on debt payments, total expense growth from 2009-10 to 2012-13 must be held to an average of 1.7 per cent annually, even after factoring in the impact of the compensation restraint measures in the Budget plan. Beyond 2012-13, program expense growth must be held to 1.9 per cent annually. That program expense growth must cover all increases in the cost of providing public services, of which compensation is only a portion.
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