City of Winnipeg Report (750 KB)


"I am entitled to my entitlements" were the infamous words spoken by former Canadian Mint head David Dingwall testifying before a Commons committee explaining his exorbitant expense accounts and why he was deserving of a severance. One would think the justifiable media circus that followed these revelations (he expensed a pack of gum in spite of receiving a $277,000 salary) would raise red flags for politicians and bureaucrats across Canada. Not so at the City of Winnipeg.

The Canadian Taxpayers Federation has obtained a report commissioned by the Chief Administrative Officer (CAO) reviewing compensation for all director positions at the city. Conducted by Calgary-based Hay Management Consultants, the report analyzed the salaries and bonuses for sixteen of the top brass at city hall. Everyone from the CAO to the City Assessor were included in the compensation review and although the report suggests that most of the positions are earning a competitive wage, the CAO position "is remunerated well below both the national and western Canadian markets." But the report made no formal recommendation as to what level the CAO should be compensated and goes on to indicate that other public sector organizations are doling out higher bonuses.

In 2004, Winnipeg's CAO Annitta Stenning received a handsome salary of $204,000 - this includes perks such as a car allowance and a bonus. At this salary level, this puts Ms. Stenning in the top 1 per cent of income earners in Canada. As an aside, she rakes in nearly double the salary of the Premier of Manitoba, and
more than the former Chairman of the U.S. Federal Reserve Alan Greenspan.

Factors used to determine compensation included know-how, problem solving and accountability. However, a significant shortcoming of the Hay report is that it did not provide wage comparisons to the Province of Manitoba, which is the city's biggest competitor when it comes to the labour market. Instead, the report looked at entities such as the CBC, Business Development Bank of Canada, Ontario Securities Commission and a variety of cities including Calgary, Edmonton, Nanaimo and Kamloops. Cost of living also eluded the authors of the report, as no reference is made to the lower living costs here in Winnipeg.

This report commissioned by the city's top bureaucrat is in conflict with the direction Mayor Katz has indicated he would like to go with respect to compensation. Just last week in his State of the City address Mayor Katz stated that he will conduct a review of all salaries and work towards phasing out bonuses. But talk is cheap; Winnipeggers need action on this file.

Obviously there is a great divide between the administration's expectations and that of the politicians; the latter accountable to taxpayers, the former supposedly accountable to the mayor.

While a competitive wage should be paid to civil servants, they must be in line with public expectations. With deteriorating infrastructure and high property taxes there is little to no justification for increasing the salaries earned by senior bureaucrats at city hall. Put another way: does Annitta Stenning earning more than $204,000 a year do anything to improve the quality of life for Winnipeggers The short answer is no.