Moose Jaw Forum

http://www.financialpost.com/executive/ ... story.html

Howard Levitt, Financial Post • Jun. 22, 2011 | Last Updated: Jun. 22, 2011 8:34 AM ET

Years ago, I told my sister once people realized how much they were paying public servants such as her, there would be a full scale revolt. Factoring in the short work days, thrice annual long vacations, professional development days, retirement at age 55, and wildly generous pensions, no one of comparable education makes nearly as much on an hourly basis.
Although not specific to teachers, that prediction has been realized. Canadian taxpayers are nearing full scale revolt against the outrage public sector remuneration has become. It makes little sense that the employees make significantly more than their taxpayer employers do for the same jobs.
According to a CFIB 2008 study, taxpayers would save $19-billion a year if publicsector wages were equalized with private-sector ones. And that only includes those civil servants with direct private sector equivalents -in other words, no police, firefighters, etc. were included.
How did this situation arise? When I negotiate collective agreements, I find a distinct difference between the instructions I receive from entrepreneurs -large or small -who are spending their own money compared to professional managers. The former are almost invariably more parsimonious and do not succumb to collective agreement "creep" wherein, in each round of bargaining, more and more is given, until the collective agreement can be weighed in pounds, each clause providing another impediment or cost.
Voters have paid scant attention to the salary increases awarded in the public sector, and even less to the Byzantine non-monetary provisions that they barely understand and never hear about. By the time these give-aways reach the ears of the credulous public, the politicians are long gone, either from office or, at least, that portfolio.
The recent Canada Post and Air Canada strikes -with pensions at the heart of both labour disputes -were terribly mishandled. In both cases, the employers could have won with public support. In Air Canada's case, the largely unskilled positions were easily filled. In Canada Post's, most Canadians now have easy alternatives: If you don't already have an email account, any Internet carrier will be happy to oblige for free. Why would these employers want government intervention when they could win the strikes, reduce the union's power and their collective bargaining goals? There was no constituency for a forced return to work except the tremulous employers themselves.
The illusion management is being tough by asking the government to order their employees back to work is a hoax on the public. The City of Windsor understood that and pleaded with the McGuinty government to not order its striking workers back. Doing so is an admission of failure because ordering the workers back means an arbitrator will decide their remuneration and the history of arbitrators' decisions has created the very wage boondoggle the public is decrying. What arbitrators will not do is remove union members' pensions or create lower wages for new employees. By submitting their union disputes to binding arbitration, the McGuinty government has knowingly forsaken the very salary freezes they have been publicly demanding.
What should government and public sector employers do?
First, fire the advisors and lawyers who have brought us to this precipice and are comfortable with conceding.
Second, take tough positions at the bargaining table and, if the union strikes (which they are less likely to if they believe this will occur), make sure the cost of the strike is taken out of the employees future salaries and benefits before the strike is settled. With one not-for-profit client I negotiated for, we told the team-sters every time our offer was rejected, the next would be less. On the third offer, they believed us and accepted the reduced offer. The next time they didn't strike.
Third, the government should pass legislation requiring arbitrators to make comparable salary and benefits in the private sector their main criteria. Couple that with provisions requiring them to adjust wages up or down to accomplish that. If that occurred, ordering workers back to work would have teeth.
If this was implemented, there would be few strikes and the public-private sector remuneration disparity would become a thing of the past.

Howard Levitt is senior partner of Levitt LLP, employment and labour lawyers. He practises employment law in eight provinces and is author of The Law of Dismissal for Human Resources Professionals. He can be reached at hlevitt@levittllp.ca.

Excellent article; now if those in power would just treat the Unions accordingly!

suki wrote:The unions are ultimately their own worst enemies because, by keeping salaries higher than the market, ultimately, too many people chase limited demand.

The unions and that right wing government to the west of us. Alberta has always tried to attract the best teachers nurses etc, with higher wages then other provinces. Forcing everyone else to try and follow suit, or give unions an excuse to cry for equal compensation. Then ironically, Alberta has the nerve to turn around and cry about ever increasing health care costs and the need to privatize, well maybe they are right because they haven`t got a clue on how to control wages.

jty wrote:

suki wrote:The unions are ultimately their own worst enemies because, by keeping salaries higher than the market, ultimately, too many people chase limited demand.

The unions and that right wing government to the west of us. Alberta has always tried to attract the best teachers nurses etc, with higher wages then other provinces. Forcing everyone else to try and follow suit, or give unions an excuse to cry for equal compensation. Then ironically, Alberta has the nerve to turn around and cry about ever increasing health care costs and the need to privatize, well maybe they are right because they haven`t got a clue on how to control wages.

I sort of wonderif it had nothing to do with the recent recession and how the economic reality hammered that province.

suki wrote:The teachers' colleges are full of students who graduate to unemployment or underemployment. This glut is made worse, every year, by the failure of salaries to stay flat or fall, as unemployment is high in the sector, thus, ultimately making the situation worse by signalling the formation of even more students to the profession.

The unions are ultimately their own worst enemies because, by keeping salaries higher than the market, ultimately, too many people chase limited demand. When I was in university in the 1990s, the public sector booths at career fairs were mostly empty -- students were chasing the private sector. Today, it is practically everyone's dream job to graduate and immediately become a civil servant, nurse, or other sucker of the taxpayers' teat.

"taxpayers' teat"... well, you clearly articulated your opinion of public employees so at least we know your bias lies. I respectfully disagree with your opinion that education graduates are unemployed or at the very least under employed. There are education sector jobs available (many more to come given the aging demographics educators and most other professions in the province) if graduates are willing to move to small town Sask. This is similar to the issues many small Sask towns have in acquiring and retaining medical sector people. That's an ongoing issue in the province. Could you please expand/rationalize your suggestion that salaries should stay flat or fall? With nearly all other salaries rising (private and public, including minimum wage) why should one sector be singled out as the exception? How are unions keeping salaries higher than "the maket"... what market specifically are you referring to... certainly not a fair-market/capitalist based market? I also disagree that people are so naive that they would pay for four years of education to "chase" careers with limited demand. People, by nature, generally want to make as much money as they can... that's natural and shouldn't be viewed as a negative motivator. So when a high school graduate (or even a grade 10) can head off to the oil sector or to potash why would they want to be a teat sucking civil servant? Pitting private sector vs. public sector is a red herring... a suckers choice... and doesn't begin to address why people choose the careers they do.

A kodiak. The one trick pony who only usually comments in the education section of the forum, even if it is by reopening 1 month old stale threads.

kodiak60 wrote:"taxpayers' teat"... well, you clearly articulated your opinion of public employees so at least we know your bias lies.

And thanks to your continued posts in support of the education system over the course of the last 4 years we also know where your bias lies.

I respectfully disagree with your opinion that education graduates are unemployed or at the very least under employed. There are education sector jobs available (many more to come given the aging demographics educators and most other professions in the province)

Seems this is more blue sky fluff in support of education isn't it? I mean, you ARE predicting the future here.

Seriously, with continued enrollment declines up to last year, do you really think they are going to take on MORE teachers than they have right now?

And if the best your industry has to offer is "we have no growth but we have a bunch of people who are leaving" then what person in their right mind is going to invest in it?

Hey, why not strike? Canadian teachers are the highest paid teachers in the world, work 8 months a year, can't be fired, and get the most obscene golden pensions of anyone in Canada, I wonder if they paid them on a per student basis, if anyone does not pass, they must teach those students during their 2 months off in the summer, if they do not pass again they forfeit one months pay per student, that might get some incentive.
Try comparing Canadian teachers wages to those in the U.S. (surprise ! !)

willardhotel wrote:Hey, why not strike? Canadian teachers are the highest paid teachers in the world, work 8 months a year, can't be fired, and get the most obscene golden pensions of anyone in Canada, I wonder if they paid them on a per student basis, if anyone does not pass, they must teach those students during their 2 months off in the summer, if they do not pass again they forfeit one months pay per student, that might get some incentive.
Try comparing Canadian teachers wages to those in the U.S. (surprise ! !)

Regardless of where you stand on the issue I think you had better come to the table with facts. Teachers in Australie are highly paid. Many countries in which teachers are paid more. And your stating that they work 8 months of the year does not stand up to scrutiny.