Would it be appropriate for an organization to utilize funding provided for service enhancements to address compensation instead?
A7. As set out in the Policy Statement, the government expects that newly negotiated collective agreements will consist of two years of no net increase to compensation. Compensation increases are inappropriate regardless of the source of funding. Compensation cannot increase even if other cost savings measures are introduced. It would certainly be contrary to the Policy Statement to utilize increased funding earmarked for service improvements or increased levels of service to address compensation issues.
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