THE COMPROMISE - Strike aftermath: Who blinked?
From the Toronto Star:
Workers can take sick day cash now or freeze what's in the bank for bigger payday at retirement, sources say
John Spears
Donovan Vincent
City Hall Bureau
It was compromise by both sides on the strike's key issue – city employees' ability to bank sick days until a rich retirement payout – that let exhausted negotiators finally shake hands after 35 days of bruising discord, sources say.
The 30,000 workers hit the bricks June 22 determined to preserve the system allowing them to accumulate up to six months of unused sick time to be paid out when they left or retired.
Mayor David Miller has argued the city is no longer able to afford the provision and should scrap it, giving employees an immediate but partial payment for banked time, estimated to average $8,500.
Three sources confirmed that yesterday's wee-hours breakthrough gives workers an option: take the immediate cash, or freeze what's now in the bank and collect the payout upon retirement.
No further sick days can be accumulated, as the city moves to a short-term disability plan that provides benefits only to those who are ill or injured.
The compromise lets the city say it ended the sick-bank system, because no further days will accumulate and many workers will want the instant cash.
But it also allows the leaders of the two striking Canadian Union of Public Employees locals to say they protected the banked time of members who want to hold on to it until retirement
Miller, asked yesterday if sick day banking is over, would only say: "Any issue at the table, to reach agreement there has to be flexibility on all sides.''
The most recent financial statements show unused sick pay will cost $249 million in future payments, offset by reserves of only $63 million.
Miller said the deal falls within parameters set by council before the strike and "is consistent with 2009 public sector settlements." He enraged union leaders mid-strike by publicly releasing an offer with a 1 per cent pay hike in each of the first two years, 2 per cent in 2011 and 3 per cent in 2012.
Miller's opponents on the right-wing faction of city council were concerned and puzzled yesterday by a statement by Mark Ferguson, president of CUPE Local 416, that his negotiators managed to "fight back all of the concessions" the city had sought.
The critics said that, before they'll support a deal, they want evidence that the city made some measurable gains, given that residents suffered through a five-week strike that shut down daycares, summer camps, garbage pickup and building inspections.
"I will be looking for wage increases that are reasonable and affordable for the city. I certainly do want to see what the value of the entire package is, so that we understand the long-term implications for the city," Councillor Karen Stintz said.
Stintz added that the "sick bank needs to be out, absolutely," and replaced with a short-term disability plan for the deal to get her vote at council.
Councillor Doug Holyday, who sits on the Employee and Labour Relations committee, said: "If for some reason sick leave has been taken off the table – I can't believe that could be the case – but if that was the case, then I think this would have a tough time getting through council, period.
Ann Dembinski, president of CUPE Local 79, said workers will be happy with the agreement, but that hostility to council and senior city managers will linger.
"Labour relations has been set back decades," she told reporters after the deal was reached.
"It will not be the same for years to come.
"You can't treat members like this and expect things to ever be the same," she added later, predicting there will be a much more combative attitude in day-to-day dealings with senior managers.
The union leaders were especially angry when Miller released the city's proposal publically July 10.
They regarded that as an attempt by the city to bypass the union and bargain directly with the members.
And throughout the strike, the city and union each accused the other of dragging their feet during bargaining.
The city and Local 79 couldn't even agree at the end to coordinate their news conferences: Miller and Dembinski spoke almost simultaneously, in different locations, instead of the usual procedure of letting one go first.