UPSE president says throne speech raises red flag about gratuity

The president of P.E.I. Union of Public Sector Employees says the speech from the throne is raising at least one red flag for her members.

Karen Jackson saidthe concern stems from what government says is "a review of future benefit arrangements in the public service, including service gratuity."

"It's a retirement allowance," said Jackson."It's based on the number of years that you serve. I believe it's very important. People serving in the public service get this retirement benefit at the end of their term."

"Maybe their intent is to reduce these benefits. But in saying that, it's important to note that the retiring pay provisions are a negotiated item and that changes to these benefits must be negotiated through the collective bargaining process, which involves give and take on both sides. "

Jackson notedshe has been hearing concerns about this from some members.

She is hoping the upcoming budget will provide some clarity.

Jackson saidthe union will likely address the issue further at that time.

Government officials notethis is not a review of pensions.They saidit will be focused on the future cost of the benefit package.

They saidthey will be having conversations with the unions in the coming months as the review is conducted.

They notedthe province appreciates the work of the public service, which "deserves a great deal of credit for its budgetary frugality in helping government to balance operational spending and revenues."