DECEMBER 23, 2008: THE TORONTO SUN
Merit pay blues at City Hall
Municipal employees earn 11.6% more than comparable employees in the private sector
By SUE-ANN LEVY 
Nearly 14 months ago, when Mayor David Miller first brought in his much-loathed creative new taxes, he promised to look into the city's absurdly generous merit pay scheme for non-unionized employees.
Even his own blue-ribbon panel singled out the merit pay scheme -- which rewards management and non-unionized city employees with increases of as much as 3% on top of their cost-of-living hikes, simply for doing their jobs.
That means this year a management employee likely saw his or her pay jump by 6.25% -- when most of us in the private sector were lucky to get 2%, if we were fortunate enough to keep our jobs.
In its February 2008 report, Miller's blue-ribbon panel suggested the current "merit pay" system be reformed -- that it not be "automatic" (meaning only those who truly deserve it would get it) and that any increases be in line with what's paid in the general labour market.
Mind you, I wouldn't be losing any sleep if the scheme was cancelled entirely.
According to a recent study by the Canadian Federation of Independent Business (CFIB), municipal government employees in Toronto earn 11.6% more than comparable employees in the private sector. Municipal fringe benefits are worth 28.2% on top of wages compared to a norm of 14.4% in the private sector.
All of that said, 14 months and a lot of talk later, absolutely nothing has been done to reform the merit pay scheme.
In fact, a $75,000 study by Mercer Consultants -- commissioned by former city manager Shirley Hoy and delivered to the city's human resources division this past March -- remains shrouded in secrecy.
I know. After being repeatedly told it was publicly unavailable -- despite being funded by public money -- I initiated a Freedom of Information (FOI) request last month.
NO LUCK
My request for the study came up empty. In a letter dated Dec. 12, I was informed that the study has been denied because it involves consultations, meetings, discussions or communications about "labour relations" or "employment-related matters."
The response also indicated the matter is "still under review" with staff to report back to the employee and labour relations committee sometime in the first quarter of 2009.
Coun. Peter Milczyn, who exacted the original commitment from the mayor to look into the scheme, has had two briefings on the study at employee and labour relations committee -- in May and October -- and feels it can be released.
"What the results of the study were ... I don't think there's anything in there that can't be released to the public, other that it was an embarrassing indictment of the advice we were getting from senior staff," he said.
Ah ha! Therein lies the rub. Releasing the study could prove what I've long suspected -- that the merit pay scheme is out of whack with the rest of the labour market and can't be justified in particular during these recessionary times.
Milczyn makes clear that the Mercer study advises the city to "overhaul" the "merit pay" scheme -- that by doing so they'd save money and get "better results" from employees who deserve it.
MORE FOR COUNCILLORS?
He said instead, when asked to develop policy changes based on the study, the city's human resources staff came back with "more of the same" -- and the idea that maybe, council should get "bigger raises" as well!
Milczyn believes -- and I agree -- that something should be done before the 2009 operating budget is passed in the spring, despite the legal roadblocks that could be thrown in council's way.
"I would take my chances," he said. "Is somebody going to sue us that they deserve merit pay?"
FREEDOM OF INFORMATION OR TOLITARIAN CONTROL?
Like so many things at Socialist Silly Hall, in the past year the red tape to file an FOI request has increased tenfold. Instead of simply dropping off a request letter at the FOI office as was done in the past, I was asked to fill out multiple forms at a Service Toronto booth. I got no confirmation that the request was even being handled until I followed up with multiple phone calls a few days before the 30-day deadline.
The response on the merit pay scheme arrived a week past the deadline with no apologies for the delay -- only excuses as to why my request could not be fulfilled. So much for Miller's broom. As Coun. Mike Del Grande notes: "I think that broom is probably in splinters."
Even his own blue-ribbon panel singled out the merit pay scheme -- which rewards management and non-unionized city employees with increases of as much as 3% on top of their cost-of-living hikes, simply for doing their jobs.
That means this year a management employee likely saw his or her pay jump by 6.25% -- when most of us in the private sector were lucky to get 2%, if we were fortunate enough to keep our jobs.
In its February 2008 report, Miller's blue-ribbon panel suggested the current "merit pay" system be reformed -- that it not be "automatic" (meaning only those who truly deserve it would get it) and that any increases be in line with what's paid in the general labour market.
Mind you, I wouldn't be losing any sleep if the scheme was cancelled entirely.
According to a recent study by the Canadian Federation of Independent Business (CFIB), municipal government employees in Toronto earn 11.6% more than comparable employees in the private sector. Municipal fringe benefits are worth 28.2% on top of wages compared to a norm of 14.4% in the private sector.
All of that said, 14 months and a lot of talk later, absolutely nothing has been done to reform the merit pay scheme.
In fact, a $75,000 study by Mercer Consultants -- commissioned by former city manager Shirley Hoy and delivered to the city's human resources division this past March -- remains shrouded in secrecy.
I know. After being repeatedly told it was publicly unavailable -- despite being funded by public money -- I initiated a Freedom of Information (FOI) request last month.
NO LUCK
My request for the study came up empty. In a letter dated Dec. 12, I was informed that the study has been denied because it involves consultations, meetings, discussions or communications about "labour relations" or "employment-related matters."
The response also indicated the matter is "still under review" with staff to report back to the employee and labour relations committee sometime in the first quarter of 2009.
Coun. Peter Milczyn, who exacted the original commitment from the mayor to look into the scheme, has had two briefings on the study at employee and labour relations committee -- in May and October -- and feels it can be released.
"What the results of the study were ... I don't think there's anything in there that can't be released to the public, other that it was an embarrassing indictment of the advice we were getting from senior staff," he said.
Ah ha! Therein lies the rub. Releasing the study could prove what I've long suspected -- that the merit pay scheme is out of whack with the rest of the labour market and can't be justified in particular during these recessionary times.
Milczyn makes clear that the Mercer study advises the city to "overhaul" the "merit pay" scheme -- that by doing so they'd save money and get "better results" from employees who deserve it.
MORE FOR COUNCILLORS?
He said instead, when asked to develop policy changes based on the study, the city's human resources staff came back with "more of the same" -- and the idea that maybe, council should get "bigger raises" as well!
Milczyn believes -- and I agree -- that something should be done before the 2009 operating budget is passed in the spring, despite the legal roadblocks that could be thrown in council's way.
"I would take my chances," he said. "Is somebody going to sue us that they deserve merit pay?"
FREEDOM OF INFORMATION OR TOLITARIAN CONTROL?
Like so many things at Socialist Silly Hall, in the past year the red tape to file an FOI request has increased tenfold. Instead of simply dropping off a request letter at the FOI office as was done in the past, I was asked to fill out multiple forms at a Service Toronto booth. I got no confirmation that the request was even being handled until I followed up with multiple phone calls a few days before the 30-day deadline.
The response on the merit pay scheme arrived a week past the deadline with no apologies for the delay -- only excuses as to why my request could not be fulfilled. So much for Miller's broom. As Coun. Mike Del Grande notes: "I think that broom is probably in splinters."