Larry O’Brien

The city of Ottawa is not alone in facing budget challenges. The Province of Ontario is looking at a $25 billion deficit, and every public institution in this country is being stretched to its financial limit. That’s why I am asking the Province to freeze wages for all public sector employees. For the City of Ottawa, a freeze on staff wages would save about $25 million in 2010. Today I sent a letter to our Premier, Dalton McGuinty, asking him to pass legislation to freeze all Ontario Public sector salaries for two years:

27th November 2009

The Honourable Dalton McGuinty,

MPP, Ottawa South

Premier, Province of Ontario

Room 281

Main Legislative Building

Queen’s Park, Toronto M7A 1A1

Dear Premier,

As Mayor of the City of Ottawa, I am writing to you on an issue that affects every public sector employer in the Province of Ontario.

This week, Ottawa City Council prepared a 2010 budget that included over $60 million in spending deferrals and cuts in an effort to limit the property tax increase to 3.9%.

The single largest line item in our 2010 budget was public sector wage increases. I acknowledge the hard work and dedication of our employees but realize that wage settlements beyond those in the private sector places a large burden on all of our taxpayers, including those that can least afford increases-such as seniors and the poor.

There have been reports that you may be considering the re-introduction of unpaid days off to deal with the estimated $24.7 billion provincial deficit. I would like to express my concerns with this approach, as so many of our public sector employees deliver vital front line services that cannot be accommodated by additional absenteeism.

The provincial legislature has, within its authority, to introduce special legislation that would freeze public sector salaries for a recommended two years. This would allow municipalities, hospitals, schools and your own government to continue the recovery from the recession, while maintaining the front-line services our residents depend upon. This is not something that municipalities can do themselves. Ottawa is unique in that so many of our collective agreements include mandatory arbitration, but all municipalities are burdened with the knowledge that arbitrators are not required to look at the taxpayers ability to pay.  In addition, many of our collective agreements were signed prior to knowing the full extent of the global downturn.

The current financial difficulties are shared by many and we wish to work together to return the province and all Ontario municipalities to financial sustainability, I am asking for your consideration of this request as I believe it is in the best interests of all Ontarians.

Sincerely,

Larry O’Brien

Cc:  Hon. Dwight Duncan

       Minister of Finance