City Unions Get More Protection From Comrade Miller

Toronto cries poor, advocates more rich wages
By SUE-ANN LEVY

Today's column is called "A Tale of Two Committee Rooms."

Late last week in City Hall's committee room two, the politicians overseeing the creation of this year's $7.8-billion operating budget -- all good soldiers in the Mayor David Miller regime -- shook their heads in stunned disbelief.

It just couldn't be so. Those nasty Liberals at Queen's Park had refused to grant the city a $71-million bailout -- money the mayor claims is owing to subsidize a slew of Cadillac social service programs.

What were these poor politicians to do? After all, the mayor contends the city's costs to run these program are "not only reasonable" but "very efficient" -- a mantra he repeats over and over again, as if he has to convince himself.

With the clock ticking towards tomorrow's executive committee meeting and Friday's council meeting -- to approve the operating budget -- they had few choices left.

So, they proposed the only thing they know -- one-time fixes. They elected to snatch another $41 million from the city's nearly bone dry reserve (rainy day) funds and to yank $30 million from the capital fund being used to pay for the Spadina subway extension project.

Then, following much hurling of insults at Queen's Park, they unanimously supported an outlandish motion by Coun. Kyle Rae to look at taking the province to court for not paying its bills. No matter the cost.

The city's budget brains (and I use the term loosely) must have been operating on another planet that day considering what was happening across the hall in committee room one.

There, members of the general government committee were reviewing a top-up to the city's so-called "fair wage" policy that demands any businesses wanting to do trades work with the city must pay a long list of wages very close to what Toronto's unionized employees make. I'm talking as much as $41/hr. for electricians and $40/hr. for bricklayers.

According to the plethora of reports on the committee agenda, on average Toronto's schedule of "fair wages" are 41% higher than the province's rates and 27% higher than the federal rates, as well as being richer than many rates set by other municipalities in the GTA.

That comparison is based on the current rates. The report from the Fair Wage office proposes hiking those premium rates by 3% per year over the next three years!

And as the report made clear, those who don't comply with the policy face being blacklisted by the city for three years.

Fair wages, my foot. Coun. Denzil Minnan-Wong calls them "union" wages which are "way out of whack" with reality.

It shouldn't take a Harvard economics grad like the mayor to see that if you continually pay a 30% or more premium for city projects, your costs will spiral out of control.

"No wonder we're maxed out on our borrowing and our debt service charges have gone up by $70-million in one year," says Coun. Karen Stintz.

No wonder the city is struggling yet again this year to balance its books.

Coun. Doug Holyday says he figures about $3-billion of the city's budget is related to contracts and if the city could save even 5% on those tenders with more competitive wages, they'd have another $150-million to work with.

Minnan-Wong adds, quite rightly, the "fair wage" policy "undermines significantly" the city's ability to go to Queen's Park "with clean hands" to say its house is in order.

So when I heard Miller declare the reason for the silly (my words, not his) court action is because "the residents of Toronto can't afford anymore to subsidize the provincial government," I couldn't help but laugh.

He even had the nerve to add that his regime has an "obligation" to fight for the rights of Torontonians.

There you have it. The "Tale of Two Committee Rooms" and of a mayor who -- despite his puffed up pronouncements -- feels no obligation to fight for Torontonians.

For if he was really intent on playing fair, the city's fair wage policy would be fair to all. To use the mayor's own words, the residents of Toronto can't afford anymore to subsidize his union pals.