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CLOSE [X] 28-Apr-2009     Briefing Notes to City Council and Media

Non Union Compensation

COTAPSA is asking Council to follow the principle of fairness and equity.

In keeping with the principle of fairness and equity, COTAPSA proposed at the City’s Executive Committee meeting of April 7, 2009 the following recommendations:

  1. Support the Non-Union Compensation Staff Report from the City Manager, dated March 23, 2009, that was prepared and presented to the Employee and Labour Relations Committee meeting of March 23, 2009.
  2. City Council treat all employees of the City of Toronto the same - fair and equal treatment for both Union and Non Union employees of the City.
  3. Approve a zero (0%) percent COLA increase for 2009 and a zero (0%) percent COLA increase for 2010 for all employees – both Union and Non Union - in recognition of the difficult economic times.
  4. Alternatively, again recognize the good work of the Toronto Public Service and treat employees fairly and equitably by approving the same COLA increase for all employees – both Union and Non Union.
  5. For employees who have met or exceeded their goals for 2008, pay the one time reearnable performance based lump sum payment for their work done in 2008.

COTAPSA’s Recommendation #1

Support the Non-Union Compensation Staff Report from the City Manager, dated March 23, 2009,
that was prepared and presented to the Employee and Labour Relations Committee meeting of
March 23, 2009.

The Non-Union Compensation Staff Report from the City Manager, dated March 23, 2009, contains
some interesting facts:

Fact #1 – 2009 General Salary Increases (COLA) for Non-Union Employees in Municipalities in the GTA 905 Region are 3%. (Chart A)

Fact #2 – 2009 General Salary Increase (COLA) for Union Employees and Municipalities in the GTA 905 Region are also 3%. (Chart B)

Fact #3 - Under Mayor Miller’s recommendations, 56% of Non-Union Employees of the City of Toronto would receive a 0% increase – no salary increase at all.

100% of Union Employees will receive a salary increase of some sort.

COTAPSA’s Recommendation #2

City Council treat all employees of the City of Toronto the same - fair and equal treatment for both Union and Non Union employees of the City.

Fact #1 – All employees of the City of Toronto are NOT treated fairly and equally.

Fact #2 – Non-Union Employees have done their part to assist the City’s financial situation and save the City money.

In 2004, the ESA settlement DID NOT become part of Non-Union Employees base salaries. That saved the City money.

On March 1, 2008, Non-Union Employees were covered by a new Short Term Sick Leave Plan. That saved the City money.

Fact #3 – Unions have the former, more costly Sick Leave Plan. This costs the City money.

COTAPSA’s Recommendations #3 & #4

Approve a zero (0%) percent COLA increase for 2009 and a zero (0%) percent COLA increase for 2010 for all employees – both Union and Non Union - in recognition of the difficult economic times.

Alternatively, again recognize the good work of the Toronto Public Service and treat employees
fairly and equitably by approving the same COLA increase for all employees – both Union and
Non Union.

Fact #1 – Non-Union Employees move through the salary range in a manner equivalent to a step progression.

Progression through the salary range is NOT GUARANTEED and occurs with the evaluation of employee performance before an employee receives a salary increase.

Not everyone receives the 3% step progression through the salary range.

e.g. Did not meet objectives - 0% - no step increase, no COLA
Developmental - 1% - step increase + COLA
Met objectives - 3% - step increase + COLA

Fact #2 – CUPE Local 79 also moves through the salary range by a step progression.

Step progression is automatic and is not based on evaluation of performance.

Step progression for CUPE Local 79 is also 3%.

Fact #3 – In 2008, Non-Union Employees moving through the salary range received the following increases:
Performance Pay 3% + COLA 3.25% = 6.25% Total

Fact #4 – In 2008, CUPE Local 79 Employees moving through the salary range received the following increases:

Step Progression 3% + COLA 3.25% + COLA .75% = 7.22% Total

Fact #5 – In 2008, CUPE Local 79 received almost 1% more than Non-Union Employees.
100% of Union Employees will receive a salary increase of some sort.
To repeat, COTAPSA is asking Council to follow the principle of fairness and equity.

COTAPSA Recommendation #5

For Non-Union employees who are at maximum and have met or exceeded their goals for 2008, pay
the one time re-earnable performance based lump sum payment for their work done in 2008.

Fact #1 – This is a retroactive payment for work done and completed for 2008.

At the beginning of each year, Non-Union Employees set goals and objectives for that year.

Achievement of these goals and objectives is evaluated at the beginning of the next year for
work done in the previous year – hence a retroactive payment for work already done.

Potential Impacts if Council adopts Mayor Miller’s recommendations:

  • Morale decreases, demoralized Supervisor likely to have less incentive to be a high
    performing employee and less incentive to work for the benefit of the public.
  • Salary compression increases between Union employees and Non-Union staff.
  • City salary rates become less competitive potentially leading to fewer high performing candidates applying for jobs, or leaving for jobs at other employers who are market competitive.
  • Less desire for high performing employees to apply for or be promoted to Supervisor/Management positions due to less competitive salaries and salary compression issues between non union and union positions.
  • The number of Supervisors and Managers has been reduced since amalgamation. The City is expecting more from less staff.
  • Fairness and equity is no longer a guiding principle.

Conclusion:

COTAPSA believes in fair and equal treatment of employees. That should be Council’s guiding principal.

We believe Mayor Miller’s recommendations create different classes of employees – have and have not.

Any recommendations should apply to all employees.

Recommended Motions:

  1. That Council adopts the principal of fairness and equity for all employees – both Union and Non-Union.
  2. Approve zero percent (0%) COLA increases for 2009 and 2010 for all employees – Union and Non-Union. Alternatively, recognize the good work of the Toronto Public Service and treat employees fairly and equitably by approving the same COLA increase for all employees – both Union and Non-Union.
  3. For Non-Union employees who are at maximum, and have met or exceeded their goals for 2008, pay the one time re-earnable performance based lump sum payment for their work done in 2008.

Sincerely,

Richard Majkot
Executive Director

Glenn Steeves
President


Chart A
Survey of 2009 General Salary Increases (Cost-of-Living) For Non-Union Employees

City or Region Effective Date Salary Increase Status
York Region April 1, 2009 3% Council Approved
Peel Region January 8, 2009 3% Council Approved
City of Mississauga April 1, 2009 3% Council Approved
Town of Richmond Hill January 1, 2009 3% Council Approved
City of Vaughan January 1, 2009 3% Council Approved
Town of Whitby January 1, 2009 3.25% Council Approved
Halton Region July 1, 2009 3% Council Approved
Durham Region January 1, 2009 3.25% Council Approved
Region of Waterloo January 1, 2009 3% Council Approved
City of St. Catharines January 1, 2009 3% Council Approved
Niagara Region January 1, 2009 2.75% Council Approved
Province of Ontario April 1, 2009 1.5% Senior Mgt only
(over $150,000)
City of Greater Sudbury April 1, 2009 3% Council Approved
Federal Government April 1, 2009 1.5% 1st reading

Note: The above data is provided as known as at March 9, 2009


Chart B
Survey of 2009
Union Negotiated Agreement General Wage Increases (Cost-of-Living)

Note: Increases do not include any progression through salary range that some employers provide and no information is provided regarding benefit enhancements that might have been negotiated with these unions.

City or Region Effective Date Salary Increase
Toronto Transit
Commission
April 1, 2008
April 1, 2009
April 1, 2010
3%
3%
3%
Toronto Hydro April 1, 2008
April 1, 2009
April 1, 2010
April 1, 2011
April 1, 2012
3%
3%
3% plus Goal Sharing Agreement of 2.5% lump sums
3%
3%
Toronto Port
Authority
April 1, 2008
April 1, 2009
April 1, 2010
April 1, 2011
April 1, 2012
3%
3%
3%
3%
3.25%
Toronto Parking
Authority
April 1, 2008
April 1, 2009
April 1, 2010
April 1, 2011
April 1, 2012
3%
3% plus Family Day
3%
3%
3.25%
Toronto Police
Services
January 1, 2008
July 1, 2008
January 1, 2009
July 1, 2009
December 1, 2009
January 1, 2010
July 1, 2010
December 1, 2010
3%
.3%
2%
.6%
.845% ˜ 3.4%
2%
.91%
.25%
City of Burlington
CUPE 44 Outside
July 1, 2008
July 1, 2009
July 1, 2010
2.75%
2.5%
2.5%
Region of Durham
CUPE Local 1764
Inside
April 1, 2008
April 1, 2009
April 1, 2010
3.25%
3.25%
3.25%
City of Mississauga  January 1, 2008 3
Library Board January 1, 2009
January 1, 2010
3%
3%
Region of Niagara January 1, 2008
January 1, 2009
January 1, 2010
January 1, 2011
3%
2.5%
2.5%
2.75%
Peel Region -
Paramedic Services
April 1, 2007
April 1, 2008
April 1, 2009
3%
3%
3%
Town of Whitby
CUPE 53
(Inside/Outside)
April 1, 2007
April 1, 2008
October 1, 2008
April 1, 2009
October 1, 2009
April 1, 2010
October 1, 2010
3.25%
2%
1.5%
2%
1.25% ˜ 3.275%
2%
1.5%
Ontario Government
(OPSEU)
(plus various rate
adjustment increases
and absenteeism
reduction target reward
program)
April 1, 2009
April 1, 2010
April 1, 2011
April 1, 2012
1.75%
2.0%
2.0%
2.0%
Federal Government
(PSAC)
(plus pay equity and trade
harmonization)
April 1, 2008
April 1, 2009
April 1, 2010
April 1, 2011
2.3%
1.5%
1.5%
1.5

Note: The above data is provided as known as at March 9, 2009

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