Law Times

Page 6 April 15, 2013 • lAw Times COMMENT u Editorial obitEr By Glenn Kauth Tackling labour arbitration reform I n another example of the problems with the labour arbitration system, an April 5 award granted wage increases just shy of three per cent to staff at the Ottawa Police Service for 2011 and 2012 even as their municipal colleagues got less through bargaining. It's not a striking case as the employer, which proposed 2.5-per-cent increases for both years, was fairly close to the respective boosts of 2.99 per cent and 2.95 per cent put forward by the Ottawa Police Association. At the same time, three per cent is hardly an excessive amount. But as arbitrator Russell Goodfellow pointed out, the union's proposal amounts to an additional $1 million in costs to the city for each year. In addition, his ruling notes all other city bargaining units in Ottawa that had reached agreements settled for increases of two per cent or less. Those other contracts, then, fell in line with Ottawa council's directive of limiting pay increases to 2.5 per cent in order to keep property taxes in check. Goodfellow, however, made the more generous determination on the basis of wage agreements for police in other large municipalities. If he accepted the city's proposal, Ottawa police would end up "at or very near the back of the pack, behind such forces as Niagara, Durham, and Halton." Moreover, he found arbitrators aren't bound by political directives such as the one issued by Ottawa council. Goodfellow is right. But at a time of limited resources and increased scrutiny on arbitration awards in the public sector, it's reasonable to consider alternatives. Ultimately, giving greater weight to the employer's ability to pay, as Ontario Conservative Leader Tim Hudak proposes, can only do so much as governments do have the option of adjusting taxes and spending in order to fund arbitration awards that are, after all, supposed to replicate what a fully bargained deal would look like. But the I notion of ability to pay could consider a municipality's overall tax burden in order to account for cities that keep their levies comparatively low. At the same time, while Goodfellow rightly compared Ottawa police wages to other municipal forces in determining what was fair, it's also reasonable to consider what the other employees in the same city got as doing so would reflect local employment conditions as well. At the end of the day, the arbitration system is a difficult area to resolve. The rules requiring comparisons are there for good reason but they unfortunately create a domino effect making it virtually impossible for public-sector employers to significantly reform compensation. When the private sector has moved to defined-contribution pensions, for example, it's not unreasonable to expect them in government as well. The arbitration system, however, makes that difficult as arbitrators default to mimicking other agreements. Among the options for reform is a reconsideration of who's an essential employee. As economist Don Drummond's report on Ontario public services noted, the percentage of essential employees here is high. So along with Hudak's proposals, let's look at that option as well. Taking another look at Toronto's decision on TTC employees is a good place to start. — Glenn Kauth Playing with political fire could burn Wynne t would be too ironic if Premier Kathleen Wynne's next photo op has her kitted in firefighter's gear carrying a hose because that's the role she's found herself in since taking office. Wynne inherited a political landscape riddled with hotspots that keep flaring. Just when you think they've finally stomped out the fire and are ready to take on the next one, the last one explodes again when the Conservatives dig up files showing eHealth Ontario bureaucrats rang up $120,000 in food and travel expenses over four years. Then there are the eco fees — which of course aren't a tax — that ignited consumers when they took effect on the same day as the HST came into being three years ago. The announcement that fees on electronics are shooting up to $39.50 from $27.60 on large flat-screen TVs set off more fires. Even worse, on April 1 fees for large tractor tires increased to $350 from $16. A couple of days after the news broke, the government announced it would ban collection of the eco fees at the point of sale and would instead bury them in the price. Law Times rail grid and the fight in Toronto The smouldering issue of subways noteducation salaries was also back Queen's over streetcars itorneeds to hapwithstanding, on the front burner with a deal Park pen sooner than later. to get high school teachers to How to fund it all, howvote on ratifying terms that inever, is still up in the air and crease sick pay for rookie teachWynne says revenue tools ers and cut unpaid days off to have to include taxes. So it's one or two instead of three. The not going to be a shock to elementary school teachers will anyone that in the upcoming consider the same deal. budget, there will be new taxThe cost is a mere $63 miles — sorry, revenue tools — to lion that the government inIan Harvey generate transit funding. sists isn't real money but rather It's a strategy that will play found money discovered as a well with the downtown progressives result of unexpected savings. In the meantime, the brush fires contin- since they tend to take transit. Unfortuue to break out: a problem in the concen- nately, it preaches to the converted and, tration of chemotherapy medication given like that eco fee on tractor tires, burns to cancer patients as well as a $100,000 a bridge between the Liberals and rural documentary about the pipeline fight in and suburban voters. To pass the budget with NDP supBritish Columbia funded by TV Ontario that included $10,000 for a mobile phone port, the Liberals are at least paying lip video game in which players can blow up service to the notion of lower insurance a pipeline in the role of eco warriors. Then rates. A 15-per-cent cut in rates across the board was one of the demands put there's the hot-button issue of transit. The Greater Toronto Area needs about forward by NDP Leader Andrea Hor$2 billion a year to develop an integrated wath as the price for her support in Thomson Reuters Canada Ltd. One Corporate Plaza, 2075 Kennedy Rd., Toronto, ON • M1T 3V4 Tel: 416-298-5141 • Fax: 416-649-7870 • www.lawtimesnews.com Group Publisher . . . . . . . . . . . . . . . . . . . Karen Lorimer Editorial Director . . . . . . . . . . . . . . . . . . . Gail J. Cohen Editor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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It's a populist issue that cuts across party lines and the standing committee on general government will launch hearings this week on the insurance industry's practices to "develop recommendations on how to make auto insurance rates more affordable." I'm betting they'll get an earful and the stories will be both colourful and shocking. Holding hearings rather than acting decisively is an attempt to contain the issue while biding time, but as we all know, playing with fire often ends badly. The burning question looking ahead, however, remains the viability of the budget. To survive this month, then, Wynne will have to pull off the equivalent of opening up a box of dynamite in the middle of a ring of fire, light the fuse, and, while praying it doesn't all blow up in her face, find a way to blast herself to safety. LT Ian Harvey has been a journalist for 35 years writing about a diverse range of issues including legal and political affairs. 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