The Government of Manitoba is planning out a cap on salaries paid to executives in the public sector and is not ruling out cutting current wages.
The PC government introduced a bill outlining “a compensation framework” for senior officials at Crown corporations, school divisions, and health authorities.
Finance Minister Scott Fielding said that the government will seek the help of a consultant to determine an appropriate salary range for different jobs.
Fielding added that are several variables to consider, but they want to make sure there is some consistency in regards to what executives are getting paid.
Under the proposed law, a public body could see funding clawbacks if they ignore the set cap.
The introduction of the bill follows a spat between Education Minister Kelvin Goertzen and the Winnipeg School Division. Goertzen stated on social media that almost 200 school division staff were making $100,000 a year or more. The superintendent’s salary is listed at over $250,000.
The NDP's finance critic Mark Wasyliw, says that the salary cap should also include executives in the private sector.
Fielding based the bill on current legislation in Alberta, where in June last year, they reduced salaries of almost all school superintendents after a review found that they were making too much. They also decreased severance payments and retirement allowances.
Fielding went on to say that it’s too early to tell of similar cuts would come into play in Manitoba.
One of the bill’s other provisions would allow the province to set a new financial reporting requirement for municipalities. The provision is aimed at ensuring fiscal years for municipalities and the province would end at the same time, as well as syncing accounting practices.
