Surplus Margins

As a former PSAC member I still receive the quarterly newsletter and this quarter I noticed a pretty big  inconsistency on the front page of the latest newsletter:


Private contractors must build in profit margins – which mean higher costs for taxpayers combined with lower salaries and fewer benefits for the people they employ. It’s a lose-lose situation. (link)


One cannot disagree that private industry does build in a profit component, however I find it strange that PSAC doesn't consider its margins as increasing costs for taxpayers as well. In the year 2007 (the last year for which PSAC has provided financial statements) PSAC reported cash surpluses from operating activities of $8,727,409 in the general fund and $4,080,725 in the strike fund for a total cash surplus of $12,808,134.


The salary and benefits expense for PSAC in 2007 was reported as $36,731,710. Neither specific salary information nor organizational charts are available from PSAC; however there is currently a job posting for an administrative assistant offering ~$55,000 to ~$65,000 plus a $1,200 bilingual bonus.

Mandatory dues collected by PSAC in 2007 were ~$69,000,000; Membership was 172,000. The average PSAC employeee paid $402 in dues in 2007.