December 19, 1947

CIVIL SERVICE

SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES

LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council)

Liberal

Right Hon. W. L. MACKENZIE KING (Prime Minister):

Mr. Speaker, the government has for some time been giving careful consideration to the rates of pay of members of the civil service and the armed forces, and the rates of veterans' pensions and war veterans' allowances. It was recognized that account should be taken of increases in the general level of wages and salaries since the establishment of the existing rates. The problem is complex and difficult, and it is not yet possible to announce decisions with regard to all rates or all persons affected.

I should mention here that consideration is practically completed of the rates applicable to civil service grades such as messengers, elevator operators, caretakers, watchmen, cleaners, packers, hospital orderlies, and canal and airport employees. The civil service commission is also preparing recommendations affecting civil service grades between those now being dealt with and those already dealt with as a result of the Gordon report. It was felt that the announcement of the decisions already reached should not be delayed and I wish, accordingly, to announce' them immediately.

New salary scales have been approved for the clerical grades in the civil service which represent about one-third in numbers of the entire service. The new scales will be effective as of October 1, 1947. Revisions of other civil service salary scales are still under consideration. Whatever related adjustments are made will also be retroactive to October 1.

In adjusting civil service salary scales it was necessary to examine and decide on detailed and specific revisions of each individual rate. An alternative suggested was to increase all rates by a fixed percentage. It was felt that a percentage increase would not result in a schedule of rates which would be equitable. In recent years there have been changes and adjustments in certain of the rates including the incorporation of the wartime cost of living bonus, the revision of a substantial number of 5849-32'

classes in order to recruit or retain employees with specialized abilities, and the changes in senior administrative classes, proposed last year by the Gordon commission. Moreover, some new civil service classes have recently been established with rates more in accord with present conditions than the rates for older classes. All these factors had to be taken into account in making equitable adjustments at the present time.

The government gave consideration to the possibility of making the increase in the form of a cost of living bonus as an alternative to increasing basic salary rates. After thorough consideration, this alternative was felt to be unsatisfactory.

In establishing the new rates for clerical grades, the government has endeavoured to place them on a comparable basis with the rates being paid by private employers for similar services, with proper allowance for differing practices in regard to security of tenure, vacations, sick leave, retirement benefits and other terms of employment. The government has, of course, had in mind the general increases that have been taking place in wage and salary levels in Canada which affect the rates that are necessary for recruiting and retaining employees with the required qualifications.

The details of the new rates for clerical grades are set forth in a schedule which I am tabling. Broadly speaking, the effect of the present changes, combined with the increases already made through incorporating into salary rates the cost of living bonus which was granted during the war, is an increase from rates prevailing in 1939 of about $30 a month for grade 1 clerks, and of about $40 a month for higher grades, up to and including the grade of chief clerk.

With regard to the armed forces, the object has been to ensure that, for this work of national service, payments will at least be on a basis which is comparable, all things considered, with alternative employment in civilian life.

Taking into account all factors, it has been decided to put into effect increases which will average nearly 10 per cent of the total pay and allowances of the armed forces and which will vary from about 15 per cent in the case of privates and equivalent ranks, to about

Civil Service

5 per cent in the case of senior officers. Increases in respect of pay and quarters allowances are on a graduated scale. The allowance in lieu of rations for officers and men has been increased from $15 to $20 for all ranks.

These increases will be retroactive to October 1, 1947, and will be subject to pension deductions and income tax as in effect now or determined from time to time.

In the case -of disabled veterans and pensioned widows, the government will introduce legislation during the present session of parliament to amend the Pension Act in order to provide for an increase in rates of compensation. The government will recommend that the increase should be $10 a month for totally disabled veterans, and for pensioned widows. For veterans in receipt of pensions for disabilities assessed at less than 100 per cent the government will propose proportionate increases in pensions. Increases will be made effective as of October 1st.

The government will also introduce an amendment to the War Veterans Allowance Act to provide for a supplementary allowance to veterans in receipt of war veterans allowances, and to widows in receipt of widows allowances. The amendment will authorize the war veterans allowance board to grant supplementary allowances up to $10 a month in cases of need for veterans and widows who, through age and infirmity, are unable to provide for their own maintenance. The board will be authorized to make the supplementary allowances retroactive to October 1, or to any subsequent date, as the circumstances of individual cases may require.

I may add that the increases here specifically set forth are estimated to involve an initial additional annual expenditure of approximately $25,000,000.

I now ask leave to table the rates as I have indicated.

Note: Each employee at the maximum rate of the present range proceeds to the maximum rate of the new range, and each employee at a rate other than the maximum rate of the present range proceeds to the new rate in the new range which is the same number of steps below the maximum. The rate of pay to which employees will proceed as of October 1, 1947, will accordingly be the rate in the new range which is immediately below the rate which the employee is now receiving in the present range.

Clerk, grade 1 Stenographer, grade 1 Typist, grade 1

1939 salary range $ 720 $ 780 $ 840 $ 900 $ 960 $1,020Present salary range 900 972 1,044 1,128 1,200 1.272New salary range

$1,020 1,080 1.140 1,200 1,260 1,320 1,380Increase over present salary range 180 168 156 132 120 108Increase over 1939 salary range 360 360 360 360 360 360Office appliance operator, grade 1 1939 salary range 720 780 840 900 960 Present salary range 900 972 1,044 1,128 1.200 1,272New salary range .... 1,020 1,080 1,140 1,200 1,260 1,320 1,380Increase over present salary range 180 168 156 132 120 108Increase over 1939 salary range 360 360 360 360 360 Clerk, grade 1A Stenographer, grade 1A Typist, grade 1A Office appliance operator, grade 1A Comparable 1939 salary range . 900 960 1,020 Present salary range 1,128 1.200 1.272 New salary range 1,260 1,320 1,380 Increase over present salary range 132 120 108 Increase over comparable 1939 salary range 360 360 360 ....

Note: Employees in these grade 1A classes are to be classified as grade 1 and the classes themselves abolished.

Civil Service

Clerk, grade 2 Stenographer, grade 2 Typist, grade 2

1939 salary range

Present salary range

New salary range

1,440 1,500Increase over present salary range .... ....Increase over 1939 salary range .... ....

Office appliance operator, grade 2

1939 salary range 1,020

Present salary range

New salary range 1,440 1,500

Increase over present salary range .... ....

Increase over 1939 salary range

Clerk, grade 2A Stenographer, grade 2A Typist, grade 2A

Office appliance operator, grade 2A

Comparable 1939 salary range .

Present salary range ....

New salary range

Increase over present salary range .... ....

Increase over comparable 1939

salary range

1,080 1,140 1,200 1,260 1,320 1,3801,344 1,416 1,500 1,572 1,644 1,7041.560 1.620 1,680 1,740 1,800 1,860216 204 180 168 156 156480 480 480 480 480 4801,080 1,140 1.200 1.344 1,416 1,500 1,572 1.644 1,7041,560 1,620 1,680 1,740 1.800 1,860216 204 180 168 156 156480 480 480 1,200 1,260 1,320 1,3801,500 1,572 1,644 1,7041,680 1,740 1,800 1.860180 168 156 156480 480 480 480

Note: Employees in these grade 2A classes are to be classified as grade 2 and the classes themselves to be abolished.

Clerk, grade 3 Stenographer, grade 3 Typist, grade 3

1939 salary range

Present salary range

New salary range

Increase over present salary range Increase over 1939 salary range

Office appliance operator, grade 3

1939 salary range

Present salary range

New salary range

Increase over present salary range Increase over 1939 salary range

Clerk, grade 4

1939 salary range

Present salary range

New salary range

Increase over present salary range Increase over 1939 salary range

Clerk, grade 5

Comparable 1939 salary range..

Present salary range

New salary range

Increase over present salary range Increase over comparable 1939 salary range

1,380 1,440 1,500 1.560 1,620 1,704 1,764 1,824 1.884 1,944 1,860 1,920 1,980 2,040 2,100 156 156 156 156 156 480 480 480 480 480 1,260 1,320 1.380 1.440 1,500 1.704 1,764 1,824 1,884 1,944 1,860 1,920 1,980 2,040 2,100 156 156 156 156 156 600 600 600 600 600 1,620 1.680 1.740 1.800 1,860 1,9201.944 2.004 2,064 2.124 2,184 2,2|j2,100 2,160 2,220 2,280 2,340 2,400156 156 156 156 156 156480 480 480 480 480 4801,800 1,920 2.040 2,1001,920 2,040 2.160 2,2802,220 2,280 2.340 2,400300 240 180 120420 360 300 300

Note: Employees in this class are to be reclassified to clerk, grade 4 and the class itself to be abolished.

Civil Service

Principal clerk

1939 salary range .... $1,920 $2,040 $2,160 $2,280 $2,400 Present salary range

2,100 2,220 2,340 2,460 2,580 ....New salary range

2,400 2,520 2,640 2,760 2,880 Increase over present salary range

300 300 300 300 300 Increase over 1939 salary range

480 480 480 480 480 Supervising clerk Comparable 1939 salary range..

$2,400 $2,520 $2,640 $2,700 Present salary range

2,580 2,700 2,820 2,880 .... New salary range

2,880 3,000 3,120 3,180 .... -Increase over present salary range

300 300 300 300 .... Increase over comparable 1939 salary range

480 480 480 480 Head clerk 1939 salary range

$2,520 $2,640 $2,760 $2,880 $3,000 Present salary range

2,700 2,820 2,940 3,060 3,120 New salary range

3,000 3,120 3,240 3,360 3,480 Increase over present salary range

300 300 300 300 360 Increase over 1939 salary range

480 480 480 480 480 Chief clerk 1939 salary range

$3,120 $3,240 $3,360 $3,480 $3,600 $3,720Present salary range

3.300 3,420 3,540 3,660 3,780 3,900New salary range

3,600 3,720 3,840 3,960 4,080 4,200Increase over present salary range

300 300 300 300 300 300Increase over 1939 salary range

480 480 480 480 480 480The present annual increase date of employees in the above classes will not be affected by the above changes. Clerks, stenographers, typists and office appliance operators, grades 1 and 1A, now in receiptof head of household bonus will receive the following rates: Present salary range

$1,044 $1,104 $1,164 $1,224 $1,284 $1,344New salary range

1,200 1,236 1.296 1,344 1,392 1,452Increase over present salary range

156 132 132 120 108 108Clerks, stenographers, typists and office appliance operators, grades 2 and 2A, now in receiptof head of household bonus will be absorbed into the new basic rates for grade 2 as follows: Present salary range $1,404 $1,464 $1,524 $1,584 New salary range $1,440 $1,500 $1,560 1,620 1,680 1,740 1,800 $1,S60Increase over present salary range 216 216 216 216

Stenographers or typists, grades 1, 1A, 2 or 2A, or stenographers, grade 3 who on October 1, 1947 are in receipt of proficiency, stenographic, typing or dictaphone allowances in addition to basic pay will be placed at that rate in the new range which is appropriate to their rate of basic pay as of October 1, 1947. These allowances in pay, as of October 1, 1947, will be reduced by the amount of the resulting increase in basic pay. Where the amount of the allowance in pay as of October 1, 1947, exceeds the amount of the resulting increase, the balance will continue ,o be paid as an allowance in accordance with the provisions of order in council P.C. 36/2833 of July 16, 1947.

Topic:   CIVIL SERVICE
Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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PC

George Randolph Pearkes

Progressive Conservative

Mr. PEARKES:

As far as the veterans are concerned the Prime Minister's statement is a tragic and terrible let-down. The pension increases are totally inadequate; and the increase in allowances is an extension of the means test.

Some hon. MEMiBERS: Order.

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Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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LIB

James Horace King (Speaker of the Senate)

Liberal

Mr. SPEAKER:

Order. When a statement is made by a minister it is not the practice to permit a debate. If the hon. member wishes to ask a question he may do so, 'but he should not make a statement.

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Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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PC

George Randolph Pearkes

Progressive Conservative

Mr. PEARKES:

Then may I ask the Prime Minister a question? Are the pension increases, which are approximately 11 per cent, based on the increased cost of living, which the government has announced as being approximately 43 per cent?

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Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council)

Liberal

Mr. MACKENZIE KING:

I may tell my hon. friend that. I have sought to anticipate the questions that might be asked, and I think in the statement he will find the answer to the question he has just raised.

Civil Service

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Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

Co-operative Commonwealth Federation (C.C.F.)

Mr. KNOWLES:

May I ask the Prime Minister whether any provision is being made in these readjustments for superannuated civil servants?

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Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council)

Liberal

Mr. MACKENZIE KING:

My impression is that there is not, at the present time.

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CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

Co-operative Commonwealth Federation (C.C.F.)

Mr. KNOWLES:

Is the matter still under consideration?

Topic:   CIVIL SERVICE
Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council)

Liberal

Mr. MACKENZIE KING:

Yes.

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Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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LIB

Daniel (Dan) McIvor

Liberal

Mr. McIVOR:

Is any consideration being given those government employees who do not belong to the civil service, but who have to eat and be properly clothed, such as the stenographic staffs of both houses?

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Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council)

Liberal

Mr. MACKENZIE KING:

No one knows better than my hon. friend that the government is considerate of all classes, and he may be sure consideration is being given all persons who should be considered.

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Subtopic:   SALARY INCREASES-PAY AND ALLOWANCES FOR ARMED FORCES-VETERANS PENSIONS AND WAR VETERANS ALLOWANCES
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PC

George Black

Progressive Conservative

Mr. BLACK (Yukon):

Do these adjustments in salary apply to the Royal Canadian Mounted Police, both those in the service and1 those on pension?

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LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council)

Liberal

Mr. MACKENZIE KING:

The Royal

Canadian Mounted Police are not dealt with in this statement.

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PC

Howard Charles Green

Progressive Conservative

Mr. GREEN:

The Prime Minister mentioned war veterans allowances, and said there could be a discretionary increase up to $10 a month. Is the position such that if a man qualifies for war veterans allowance he will get the additional $10 automatically, or is some new discretion given to the war veterans allowance board to deal with each case?

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CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

Co-operative Commonwealth Federation (C.C.F.)

Mr. KNOWLES:

Is it a new means test?

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PC

Howard Charles Green

Progressive Conservative

Mr. GREEN:

Yes; the hon. member has expressed my idea. Is there to be superimposed a new means test in regard to the additional $10? Perhaps the Minister of Veterans Affairs could answer that question.

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LIB

Ian Alistair Mackenzie (Minister of Veterans Affairs; Leader of the Government in the House of Commons; Liberal Party House Leader)

Liberal

Mr. MACKENZIE:

The intention is that there will be a discretion based, as my hon. friend has suggested, upon the ability to provide the necessities of life.

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CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

Co-operative Commonwealth Federation (C.C.F.)

Mr. KNOWLES:

Call it a means test; that is what it is.

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December 19, 1947