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BC: Cities Overpaying for Labour

Author: Jordan Bateman 2014/09/16

As we await the details of the government-BC Teachers Federation contract reached at 4 a.m. this morning (the legend of Vince Ready grows), I’d like to highlight a news release we issued yesterday. From that release:

A new provincial government report confirms the Canadian Taxpayers Federation’s (CTF) long-standing suspicion: municipal governments are overpaying their staff compared to both the province and the private sector. The 88-page report was prepared by Ernst & Young as part of the B.C. Government’s core review process, and obtained by the CTF over the weekend.

The report’s major finding was especially welcomed by the CTF: “The [provincial] government should do what is necessary to bring municipal government compensation into alignment over time, including using financial levers if necessary” (p. 4).

“Most municipal councils are too scattered in their philosophy and prone to pressure by unions to hold the line on spending,” said CTF B.C. Director Jordan Bateman. “With as much as two-thirds of a city’s operating budget going to employee wages and benefits (p. 15), it’s no wonder property taxes have skyrocketed in so many communities across B.C.”

The Vancouver Sun was all over this, and led its Tuesday edition with the shocking stats. The Union of BC Municipalities, and Vancouver’s city manager, predictably lashed out at the province for meddling, but the numbers are the numbers. The Sun story is worth reading - as is the full report.


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