These days in Ontario all taxpayers, not just pregnant women, get to experience labour pains.  However, in today’s Ontario, labour pains refer to something completely different.  They refer to the pains of government budget makers and taxpayers being squeezed by labour leaders during recent contract negotiations.  Taxpayers need politicians to act with firm resolve during labour negotiations to keep costs reasonable and to ensure balanced budgets.

Union leadership in a variety of areas in Ontario continues to pressure local and provincial government officials with strikes and threats of strikes in an effort to gain generous pay packages and more taxpayer-funded spending.  

Ottawa transit workers are already on strike.  The union representing 73,000 Ontario elementary school teachers is threatening a strike.  Unions representing health care workers are calling for a massive increase in health care spending.  The labour group representing Ontario correctional services workers is about to hold a strike vote for its 5,500 workers.  A strike of over 3,300 educational workers at York University is in its third month.  And more than 8,000 Toronto transit workers went on strike just a few months ago.  

Ontario has experienced a few years of labour peace during the McGuinty years.  This is due to two key factors.  First, the premier likely feeling beholden to the unions who helped organize, fund and staff the Liberal campaign; not to mention the millions they spent attacking Mr. Tory and the PC Party of Ontario.  The second important element is that the treasury was over-flowing with every-increasing amounts of taxpayer money -- thereby allowing for generous pay hikes.  When times are good it is easy for politicians to buy labour’s silence.  However, times are not quite as good anymore, the treasury is in trouble and now is not the time to accept to unreasonable labour demands.  

Labour pain for taxpayers, ironically, isn’t limited to public sector unions.  Already, the province has promised $1.3-billion (of borrowed money) to Chrysler and GM, most of which will go to CAW union members.

Back in the public sector, the Elementary Teachers Federation of Ontario (ETFO), for example, has rejected a contract offer of 12 percent over four years.  This offer was already too generous at more than twice the rate of inflation, yet it was flatly rejected.  The province since has responded appropriately offering, instead, 2 percent a year for two years. This approach to labour negotiations is more reasonable.  

The ETFO is threatening to seek a strike mandate from its membership. They should do so immediately. The average teacher, already having topped out their salary at $84,000 with eleven weeks vacation a year, would be smart to recognize that their pay and pension are already darn generous.  They should also realize that during tough economic times when others fear for their jobs, they are lucky to enjoy relative job security.

During economic downturns governments should offer contracts with low or no wage increases.  In exchange they should accept a short term contract.  This allows government to protect its treasury while providing labour organizers the opportunity, in a reasonable time frame, to renegotiate, assuming government revenues allow. 

Universities, school boards, municipalities and the province are all due to deliver budgets very soon.  Expectant taxpayers wait with anxiety to see whether labour pains will drive larger deficits or whether a more prudent approach will be followed. 

By: Kevin Gaudet
Posted: January 14, 2009
Topic: Ontario

Type: Commentary

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