COMP NEWS – The Bank of Canada doled out over $20 million in bonuses to its workers last year – a move met with praise from many employees but skepticism from some critics who claimed the organization failed in its mission to keep inflation reasonably low and the economy steady.
The Bank of Canada showered its staff with bonuses amounting to more than $20.2 million in 2022 – while the Crown corporation hiked interest rates seven times and inflation reached a 40-year high, according to a non-profit organization.
The average bonus among staff was $11,200, with 80% of the workforce receiving one, according to internal government records obtained by the Canadian Taxpayers Association (CTF) through a series of access-to-information requests.
“Bonuses are for people who do a good job, not people who fail at their one and only job,” said Franco Terrazzano, federal director of the CTF. “Most organizations don’t shower employees with bonuses when they have their worst year in four decades.”
On top of the bonuses, Bank of Canada also gave staff $6.5 million in raises in 2022.
The Bank of Canada’s mandate is to keep inflation low, stable and predictable. This equates to “an inflation target of two per cent inside a control range of one to three per cent,” according to the CTF.
Last year was a difficult year for the bank, with inflation battering many Canadian residents finances.
Last year was a financially challenging 12 months for workers and employers alike.
Late in 2022, the Canadian Federation of Independent Business (CFIB) called on the federal government to hit the pause button on the upcoming 2023 increase in payroll taxes. “Now is not the time to raise taxes and drive more businesses into despair,” said Corinne Pohlmann, senior vice-president of national affairs at CFIB. “Give them a break.”
Also, over a third (36%) of employees considered looking for new employment last year, and financial stress was the top motivating factor: 75% of the respondents said high inflation and market volatility have significantly increased their money worries, Mercer noted in a report released in October 2022.
To read more about the Bank of Canada’s employee bonuses, click here.
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