Consultations Are Underway Regarding Restraint Measures For Public Sector Compensation
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Public service employers and labour leaders are in ongoing discussions with the Ontario government about managing upcoming compensation negotiations in light of the restraint measures aimed at the public sector.
The restraint measures were and announced by the government in the 2010 Budget. They will now begin to be felt by the broader public sector employers and employees.
"It is obviously a matter of great concern and will have significant impact on Ontario's social services system in the years ahead, one already grappling with perennial short falls in funding and during a time of increasing need," said Michael Fullan, Executive Director of Catholic Charities.
"Our Catholic social services are not immune to this policy. The Catholic Charities' Board will be addressing these issues and the potential impact," he said.
The Ontario government says that compensation expenses must be managed if key public services such as health care and schools, among others are to be safeguarded.
The 2010 Ontario Budget outlined the government's plan for reducing and eliminating the deficit over eight years. Managing compensation costs is a strategic element, since compensation represents the single largest expenditure of the Ontario government.
The government says that it will respect all current collective agreements, but when these agreements expire and new contracts are negotiated, transfer payment partners and bargaining agents are expected to seek agreements lasting at least two years with no net increase in compensation.
The government also wants a pause in ongoing labour negotiations and interest arbitrations to allow for further consultations on compensation.
The provincial legislation prohibits compensation increases for non-bargaining employees in the broader public sector, including the Ontario Public Service, for two years.
Ontario is currently running a budget deficit that the government says is because of the effects of the global recession.
The government expects the move will redirect some $750 million toward schools, hospitals and other public services.
In a letter from the Ministry of Community and Social Services, the government said it will respect all current collective agreements.
When these agreements expire and new contracts are negotiated, however, the letter said that transfer payment agencies and bargaining agents are to seek agreements of at least two years' duration that do not include net compensation increases.
BACKGROUND INFORMATION
FAQ
Public Sector Compensation Restraint to Protect Public Services Act, 2010
http://www.fin.gov.on.ca/en/budget/ontariobudgets/2010/faq_march.html
Toronto Star
Budget: Ontario vows freeze on public-sector wages
http://www.thestar.com/news/ontario/ontariobudget/article/785340--budget-ontario-vows-freeze-on-public-sector-wages
Public Sector Compensation Restraint to Protect Public Services Act, 2010, Statement by Minister of Finance.
www.ontario.ca/compensation
July 20, 2010
Public Sector Compensation in Ontario
July 20, 2010
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