The army announced last week that around 7,700 of its dependents will no longer receive this money from July.
The CAF is instead introducing a new housing benefit which it says will do better to help those who need it most.
Some service members have since taken to social media and online forums to express dissatisfaction with the new plan and its speedy rollout. Some are also unhappy with a new pay rise of 10% over four years stretching back to 2021.
Experts say the lack of notification points to more serious issues in the military’s handling of its personnel, which they say is sparking anger and frustration at a time when the Canadian Armed Forces are grappling with a recruitment and retention crisis.
We’re making people angry, said retired Lt. Gen. Guy Thibault, who previously served as deputy chief of defense staff.
“And that could be the drop that broke the camel’s back. It’s not really about compensation. You just don’t feel valued. »
— A quote from Guy Thibault, retired Lieutenant General
The decision to replace the Army’s cost-of-living differential with a new housing benefit follows a 14-year battle between the Department of Defense and the Treasury Department, the central department that controls federal spending.
A means of compensation
Established in 2000 as a means of compensating service members for the additional costs of living and working in certain communities, the grant rates were frozen in 2009 when Departments of Defense and Treasury officials disputed the cost and parameters of the program.
Alan Okros, a professor at Canadian Forces College, said members had been led into believing that a deal would eventually increase rates and expand eligibility because troops living in certain parts of the country would not be eligible.
According to him, there was a general tone that suggested the file was closed and everything was being settled. There was this general expectation that things were going to get a lot better, said Mr Okros, a specialist in military personnel and culture.
These expectations were based on the belief that the government would spend more money on troop salaries, especially as the armed forces are currently facing a recruitment and retention crisis.
This doesn’t happen. Instead, the military says the new housing benefit is both fairer and more effective than the previous one because it is linked to wages. It also includes more geographic locations and costs about $30 million less per year.
communication problems
Charlotte Duval-Lantoine of Canada’s Global Affairs Institute says the new development highlights long-standing concerns about how the military treats its dependents, when many members relied on this allowance to make ends meet.
This is the distinction that frustrates people the most because some of them won’t qualify for it [nouvelle prestation] Even if they struggle with the cost of living, she argued. There will be a readjustment for the people.
The fact that this allowance was removed within months without prior consultation or warning is a testament to the chain of command’s problems in dealing with and communicating with their troops, she added.
“It’s emblematic of how we talk about personnel policies and how the military communicates [avec] his employees. Those are always great announcements. And then you don’t hear about it for years. Then there is a new announcement. »
— A quote from Charlotte Duval-Lantoine, Canadian Global Affairs Institute
Housing assistance has also come under scrutiny, with actual rates based on the cost of renting a two-bedroom apartment, regardless of family size. There is also a seven-year cap on receiving the benefit at a location.
Members also complain that the new pay rise is not keeping pace with inflation.
The new performance and salary increase has nonetheless sparked debate about military personnel compensation, with some arguing that troops are being paid relatively well and that most Canadians are under financial pressure.
“We have a fairly well paid force, not only compared to other Allied or Volunteer forces, but compared to the general population. »
— A quote from Guy Thibault, retired Lieutenant General
Mr. Thibault, who is now Chair of the Conference of Defense Associations Institute Think Tank, added: As for the direction we are taking with the economy, it is not clean for the Canadian Forces. It’s a societal problem right now with interest rates, inflation, the economy and housing.
Instead, experts say the backlash is more symptomatic of deeper problems as the armed forces face mounting demands while grappling with staff shortages, dilapidated equipment and efforts to radically reform their culture.
Mr Thibault points out that members of the armed forces are increasingly disgruntled with the way they are treated by the government and their superiors, which he says exacerbates problems of understaffing.
Our government and Canadians seem to care about the Canadian Armed Forces, said Mr Thibault. But [ils] don’t care enough about them to make it a priority or fix some of these longstanding problems.