Latest news with #retentionbonuses
National Post
21-06-2025
- Business
- National Post
Ottawa considering 'combination of approaches' to 20% military pay hike
OTTAWA — Defence Minister David McGuinty's office says it's considering a 'combination of approaches' to boosting pay for armed service members, including introducing retention bonuses for 'stress trades.' Article content 'This investment represents an almost 20 per cent increase to the overall CAF compensation envelope,' McGuinty's spokesperson Laurent de Casanove said in an email statement to The Canadian Press. Article content Article content 'The Department of National Defence and the Canadian Armed Forces are actively working on how best to implement this investment, looking at options that include a combination of approaches such as retention bonuses for stress trades, increased starting salaries for junior members, and a broad-based salary increase.' Article content Article content While McGuinty's recent public commitment to grant the Canadian Armed Forces a '20 per cent pay increase' won praise within the defence community, it has also led to confusion — and some experts are saying they want to read the fine print. Article content Military pay scales are complicated and are based on rank, profession, deployment and other conditions. There are many ways to roll out a boost in compensation. Article content Charlotte Duval-Lantoine, a fellow at the Canadian Global Affairs Institute, said she thinks this will not amount to an across-the-board pay hike. Article content 'What is clear to me from this statement is that they are looking at all the options,' she said. 'We're still in that big question about what it looks like because a pay raise versus specialty pay versus an adaptation of the compensation package overall — not in salary — are not the same thing.' Article content Article content She said the way the pay pledge was communicated initially was 'risky' since the details were not readily available, and that has led to confusion among military members and expectations of a blanket pay hike. Article content Article content Gary Walbourne, former ombudsman for the Department of National Defence, called McGuinty's promise 'vague at best.' Article content 'There's nothing clear in this message,' he said. 'A 20 per cent increase overall to CAF compensation envelope, what does that mean? Is it coming in benefits? … Is it going be on a cyclical basis? What's the percentage increase? Is it based on seniority, rank, merit?' Article content The former watchdog for military personnel said it sounds like the Liberal government wants to implement a pay boost quickly, but 'the mechanisms that they apply to it is going to complicate it and once the bureaucrats get their hands on it, well, I can see a slowdown coming.' Article content If CAF members don't see a 20 per cent pay bump after the minister's announcement, he said, it will be 'deja vu all over again' for military personnel who have been let down in the past by lofty promises followed by implementation that 'sucks big time.'
CTV News
21-06-2025
- Business
- CTV News
Ottawa considering ‘combination of approaches' to 20% military pay hike
The Canadian flag is seen on a soldier's shoulder during an interview in Calgary on Thursday, Dec. 9, 2010. THE CANADIAN PRESS/Jonathan Hayward OTTAWA — Defence Minister David McGuinty's office says it's considering a 'combination of approaches' to boosting pay for armed service members, including introducing retention bonuses for 'stress trades.' 'This investment represents an almost 20 per cent increase to the overall CAF compensation envelope,' McGuinty's spokesperson Laurent de Casanove said in an email statement to The Canadian Press. 'The Department of National Defence and the Canadian Armed Forces are actively working on how best to implement this investment — looking at options that include a combination of approaches such as retention bonuses for stress trades, increased starting salaries for junior members, and a broad-based salary increase.' While McGuinty's recent public commitment to grant the Canadian Armed Forces a '20 per cent pay increase' won praise within the defence community, it has also led to confusion — and some experts are saying they want to read the fine print. Military pay scales are complicated and are based on rank, profession, deployment and other conditions. There are many ways to roll out a boost in compensation. Charlotte Duval-Lantoine, a fellow at the Canadian Global Affairs Institute, said she thinks this will not amount to an across-the-board pay hike. 'What is clear to me from this statement is that they are looking at all the options,' she said. 'We're still in that big question about what it looks like because a pay raise versus specialty pay versus an adaptation of the compensation package overall — not in salary — are not the same thing.' She said the way the pay pledge was communicated initially was 'risky' since the details were not readily available, and that has led to confusion among military members and expectations of a blanket pay hike. Gary Walbourne, former ombudsman for the Department of National Defence, called McGuinty's promise 'vague at best.' 'There's nothing clear in this message,' he said. 'A 20 per cent increase overall to CAF compensation envelope, what does that mean? Is it coming in benefits? … Is it going be on a cyclical basis? What's the percentage increase? Is it based on seniority, rank, merit?' The former watchdog for military personnel said it sounds like the Liberal government wants to implement a pay boost quickly, but 'the mechanisms that they apply to it is going to complicate it and once the bureaucrats get their hands on it, well, I can see a slowdown coming.' If CAF members don't see a 20 per cent pay bump after the minister's announcement, he said, it will be 'déjà vu all over again' for military personnel who have been let down in the past by lofty promises followed by implementation that 'sucks big time.' The federal government has multiple policy options for addressing the cost of living for CAF members, such as lowering rent for on- or near-base housing or boosting allowances, such as danger pay. Duval-Lantoine suggested Ottawa should focus on specialty trades that 'do not get nearly the attraction that they need to have.' The military has long struggled with shortages of professionals who are hard to recruit and retain — people in the technical trades and logistics, pilots, medical specialists and middle management. The Navy has found it hard to attract and keep maritime technicians, while people working in maintenance trades such as plumbers and electricians can be paid better in the private sector. Walbourne suggested Ottawa look at direct pay, focus on the lower ranks and address regional disparities in the cost of living. Andrew Leslie, a retired lieutenant-general and former Liberal MP who has called for higher wages in the armed forces, hailed the minister's pledge as long overdue. 'They need it because the last 10 years, there hasn't been a lot of love shown to the Canadian Armed Forces by the government of Canada,' Leslie said. 'Quite frankly, a 20 per cent pay increase is outstanding and I compliment the leaders who made that decision. I firmly believe they're going to pay a 20 per cent pay increase to everybody in the Canadian Forces.' Gaëlle Rivard Piché, head of the Conference of Defence Associations and the CDA Institute, called the promised pay hike a 'great first step' and something that could be achieved 'quite easily' compared to other challenges facing the armed forces. 'It was long overdue,' she said. 'We know that the Canadian Armed Forces have been dealing with both a recruitment and a retention problem, and an increase in salary will certainly help to make Canadian Armed Forces positions and employment more attractive.' Prime Minister Mark Carney vowed during the recent federal election that he would rebuild and rearm the military and increase military pay. Some of the largest earmarks in his election platform go toward national defence. He recently announced a cash injection of $9 billion into national defence this fiscal year, as Canada looks to finally meet its NATO defence spending commitment. Then-defence minister Bill Blair last year described the state of military recruitment as a 'death spiral' and Canada is still short some 13,000 regular and primary reserve personnel, according to the Department of National Defence. 'There's been generally some delays in terms of receiving basic training, but also trade-related training, which makes people less inclined to finish their training and then become an actual serving member,' said Rivard Piché. Leslie also said housing and base conditions remain abysmal in some areas and need to be quickly addressed. 'Black mould exists in a variety of national defence buildings. There are some bases that don't have drinking water. There's buildings and houses for families that are 60, 70, 80 years old in dire need of repair,' he said. 'As well, you've got to make sure that you have money for equipment, money for training, money to create the stockpiles of stuff you're going to need should the worst happen — i.e., war.' This report by The Canadian Press was first published June 21, 2025. Kyle Duggan, The Canadian Press
Yahoo
21-06-2025
- Business
- Yahoo
Ottawa considering 'combination of approaches' to 20% military pay hike
OTTAWA — Defence Minister David McGuinty's office says it's considering a 'combination of approaches' to boosting pay for armed service members, including introducing retention bonuses for 'stress trades.' 'This investment represents an almost 20 per cent increase to the overall CAF compensation envelope,' McGuinty's spokesperson Laurent de Casanove said in an email statement to The Canadian Press. 'The Department of National Defence and the Canadian Armed Forces are actively working on how best to implement this investment — looking at options that include a combination of approaches such as retention bonuses for stress trades, increased starting salaries for junior members, and a broad-based salary increase.' While McGuinty's recent public commitment to grant the Canadian Armed Forces a '20 per cent pay increase" won praise within the defence community, it has also led to confusion — and some experts are saying they want to read the fine print. Military pay scales are complicated and are based on rank, profession, deployment and other conditions. There are many ways to roll out a boost in compensation. Charlotte Duval-Lantoine, a fellow at the Canadian Global Affairs Institute, said she thinks this will not amount to an across-the-board pay hike. "What is clear to me from this statement is that they are looking at all the options," she said. 'We're still in that big question about what it looks like because a pay raise versus specialty pay versus an adaptation of the compensation package overall — not in salary — are not the same thing.' She said the way the pay pledge was communicated initially was "risky" since the details were not readily available, and that has led to confusion among military members and expectations of a blanket pay hike. Gary Walbourne, former ombudsman for the Department of National Defence, called McGuinty's promise 'vague at best.' 'There's nothing clear in this message,' he said. 'A 20 per cent increase overall to CAF compensation envelope, what does that mean? Is it coming in benefits? … Is it going be on a cyclical basis? What's the percentage increase? Is it based on seniority, rank, merit?' The former watchdog for military personnel said it sounds like the Liberal government wants to implement a pay boost quickly, but 'the mechanisms that they apply to it is going to complicate it and once the bureaucrats get their hands on it, well, I can see a slowdown coming.' If CAF members don't see a 20 per cent pay bump after the minister's announcement, he said, it will be 'déjà vu all over again' for military personnel who have been let down in the past by lofty promises followed by implementation that "sucks big time." The federal government has multiple policy options for addressing the cost of living for CAF members, such as lowering rent for on- or near-base housing or boosting allowances, such as danger pay. Duval-Lantoine suggested Ottawa should focus on specialty trades that "do not get nearly the attraction that they need to have." The military has long struggled with shortages of professionals who are hard to recruit and retain — people in the technical trades and logistics, pilots, medical specialists and middle management. The Navy has found it hard to attract and keep maritime technicians, while people working in maintenance trades such as plumbers and electricians can be paid better in the private sector. Walbourne suggested Ottawa look at direct pay, focus on the lower ranks and address regional disparities in the cost of living. Andrew Leslie, a retired lieutenant-general and former Liberal MP who has called for higher wages in the armed forces, hailed the minister's pledge as long overdue. 'They need it because the last 10 years, there hasn't been a lot of love shown to the Canadian Armed Forces by the government of Canada,' Leslie said. 'Quite frankly, a 20 per cent pay increase is outstanding and I compliment the leaders who made that decision. I firmly believe they're going to pay a 20 per cent pay increase to everybody in the Canadian Forces." Gaëlle Rivard Piché, head of the Conference of Defence Associations and the CDA Institute, called the promised pay hike a 'great first step' and something that could be achieved 'quite easily' compared to other challenges facing the armed forces. 'It was long overdue," she said. "We know that the Canadian Armed Forces have been dealing with both a recruitment and a retention problem, and an increase in salary will certainly help to make Canadian Armed Forces positions and employment more attractive.' Prime Minister Mark Carney vowed during the recent federal election that he would rebuild and rearm the military and increase military pay. Some of the largest earmarks in his election platform go toward national defence. He recently announced a cash injection of $9 billion into national defence this fiscal year, as Canada looks to finally meet its NATO defence spending commitment. Then-defence minister Bill Blair last year described the state of military recruitment as a 'death spiral' and Canada is still short some 13,000 regular and primary reserve personnel, according to the Department of National Defence. 'There's been generally some delays in terms of receiving basic training, but also trade-related training, which makes people less inclined to finish their training and then become an actual serving member,' said Rivard Piché. Leslie also said housing and base conditions remain abysmal in some areas and need to be quickly addressed. 'Black mould exists in a variety of national defence buildings. There are some bases that don't have drinking water. There's buildings and houses for families that are 60, 70, 80 years old in dire need of repair," he said. "As well, you've got to make sure that you have money for equipment, money for training, money to create the stockpiles of stuff you're going to need should the worst happen — i.e., war.' This report by The Canadian Press was first published June 21, 2025. Kyle Duggan, The Canadian Press
National Post
10-06-2025
- Business
- National Post
Raises, retention bonuses promised for Canadian Forces personnel
Pay increases for military personnel as well as retention bonuses and increased training allowances for particular Canadian Forces members are to be part of the government's spending boost for defence. Article content In addition, it is expected that around 1,400 new staff will be hired at the Department of National Defence. Article content Article content The initiatives were outlined Monday during a technical briefing that followed Prime Minister Mark Carney's announcement that defence spending was being significantly increased. The Liberal government noted that it was pumping in more funding so Canada will meet the NATO spending target of two per cent of GDP by the end of this fiscal year. Article content Article content Carney repeated his election promises to purchase new submarines and other equipment as well as improve military housing and benefits. Article content Article content But defence officials at the technical briefing had few answers. Article content They did point out that not only will there be pay increases but in some cases boosts in training allowances and retention bonuses for key military personnel. They did not have information on what specific Canadian Forces jobs or trades would be eligible for bonuses. Article content More health-care workers will be hired for the Canadian Forces and the civilian workforce will be expanded so military personnel can focus on operations, government officials said at the technical briefing. Under government-imposed rules, the officials who provided the briefing cannot be identified. Article content In January, the Ottawa Citizen reported that military staff were recommending retention bonuses to keep key personnel from leaving the ranks. But there were questions at the time about whether the government would fund such a plan. Article content Although the Canadian Forces doesn't currently have retention bonuses, the military does offer various extra pay or allowances for those in particular jobs or handling specific duties, the Department of National Defence has noted. In addition, the military does provide extra payment to recruit individuals with particular skills. Article content Article content Various western militaries, facing personnel shortages, have been using retention bonuses to entice individuals to continue to stay in the ranks. Article content On Nov. 22, 2024, the British government announced bonuses equivalent to $54,000 for aircraft engineers who sign up for an additional three years of military service. Privates and lance corporals who have already served four years would be eligible for a new retention bonus, which is the equivalent of $14,000. Article content An internal U.S. Air Force memo, recently leaked online, noted that 89 key occupations would be eligible for retention bonuses in 2025. Those bonuses range from the equivalent of $260,000 to $520,000. The retention money is aimed at a variety of jobs, including specialized maintenance crews to Chinese language analysts.
Bloomberg
21-05-2025
- Business
- Bloomberg
Thames Water's Executive Bonuses Were Almost a Joke
There's nothing wrong in principle with paying retention bonuses to employees during a takeover. A buyer doesn't want key staff walking out before it's had a chance to get its feet under the table and decide who it needs to keep. So the anger directed at Thames Water Utilities Ltd. over the financial incentives it planned to hand to senior executives was arguably misplaced from a corporate governance perspective. But we shouldn't be too surprised: This company is in the outrage manufacturing business. Thames Water said Tuesday it would ' pause ' the plan after a backlash from the Labour government, which had signaled an intention to block the payments. The bonuses, disclosed to a parliamentary select committee last week, are related to a potential £4 billion ($5.3 billion) investment in Britain's largest water and sewerage company by KKR & Co. Their divulgence was never going to land well for a utility that's justifiably regarded as a national disgrace. Thames has a poor pollution record, was saved from collapse this year only by a £3 billion emergency loan, and is now raising customer bills by more than 30%. Whatever the justification, bonuses for the people running such an enterprise look like rewards for failure.
