November 20, 2013

Anderson's Bill 209 targets bloated severances and bonuses for health and government execs

EDMONTON, AB (November 20, 2013): New legislation put forward by Wildrose Finance Critic Rob Anderson calls for the government to put an end to bloated severance packages and bonuses handed out to health and government executives by the PC government. 

Bill 209, the Severance and Bonus Limitation Statutes Amendment Act, would cap severance packages and put strict limitations on bonuses for public sector executives, managers and all non-unionized employees. “Albertans are tired of watching the endless cycle of PC mismanagement and waste where health executives or PC government staffers are given golden handshakes or have contracts peppered with special perks and bonuses,” Anderson said.  “Bill 209 will put an immediate end to this problem.” Highlights of the legislation include:

  • No new severance packages shall ever exceed $100,000 in value, unless the individual has worked for more than 5 years in the same position in which case the severance shall not exceed $200,000.
  • No employee may collect 2 government severances within a 5 year period.
  • No annual bonus or performance pay may be more than 15% of an employee’s income in a given year.
  • All bonuses over $2000 must be based entirely on objective performance criteria outlined in advance by each ministry.
  • All bonuses and severances must be made accessible upon public request under Alberta’s FOIP legislation.  

Anderson said taxpayers are tired of being on the hook for egregious severance packages like former AHS CFO Allaudin Merali receiving more than half a million dollars in severance after charging taxpayers around $350,000 for perks like butler service and car repairs, or Premier Alison Redford’s former Chief of Staff receiving $130,000 for six months work. “It’s insulting to taxpayers to watch the continuing parade of senior public officials collecting massive bonuses for simply showing up for work and even larger severance packages for simply leaving or being fired,” Anderson said.  “For a government plagued with chronic wasteful spending, this legislation should be a no brainer to pass.”


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