Brace yourselves for yet another possible worker shortage, and a reduction in federal public services in Yellowknife and five other Northern communities.
This time, the shortage will be due to a significant pay cut for homeowners working for the federal public service. The pay cut is a result of the removal of a housing subsidy referred to as the shelter cost differential. For Yellowknife homeowner workers with dependents, this translated to an annual pay cut of up to $8,500. This financial support is crucial to members and plays a key role in recruiting and retaining federal public service workers in northern communities.
Up until a few months ago, all federal government workers were eligible to receive the housing subsidy regardless of what type of accommodation they chose, such as rental, government housing, or home ownership. Unfortunately, during four information sessions, the federal government has communicated to Northern workers that homeowners will no longer be eligible to receive the housing subsidy.
By the end of this month, the government will determine if this pay cut will be implemented.
The reality is that this pay cut will result in federal government workers leaving the North due to the skyrocketing cost of mortgage renewal rates, property taxes, and the overall cost of living. The other alternative they have is to stay and work for the territorial or municipal governments.
In both scenarios, the implementation and completion of several multi-million dollar housing projects are jeopardized. This includes The Rapid Housing Initiative, which was recently announced during the Prime Minister’s October visit to the Northwest Territories. Furthermore, the challenge of recruiting new federal workers to live and work in the North will be substantially increased.
Ultimately, the collective hope for all impacted federal public service employees and their families is that, on Oct. 31, the federal government will reverse the decision to take away the housing subsidy from homeowners.
PSAC North believes strongly that homeowners should continue to receive the subsidy. We’ve written before about the huge obstacles facing workers, including young workers, as they attempt to establish a stable life for themselves in the North. We will continue to support our members and defend their interests.
—Reyhan Sarikaya, is alternate regional executive vice-president for PSAC North.