pay equity - chba kamloops march 13 equity - chba kamloops march … · kamloops | march 13, 2013...
TRANSCRIPT
13-‐03-‐07
1
Labour Pains Canadian Home Builders’ Association Central Interior Kamloops | March 13, 2013
Canadian Taxpayers Federation ¡ Not for profit advocacy organization,
eight offices across Canada
¡ Accepts no government funding ever
¡ Funded by after-tax, free will donations from 21,000+ individual Canadians
¡ Dedicated to three things: lower taxes, less waste, more government accountability
Private-Public Pay Gap
¡ Public sector workers (federal, provincial and local) in B.C. earned wages 13.6% higher, on average, than their private sector counterparts in 2011
¡ That premium doesn’t include better pensions or benefits
Federal Government Employees
2006: 336,831 2011: 379,760 2016: 349,000
Federal Government Average Salary
2006: $86,000 2011: $111,379 2016: $129,800
Federal Government Total Payroll
2006: $29 billion 2011: $42.3 billion 2016: $45.3 billion Current National Debt: $608 billion
13-‐03-‐07
2
Canadian Payroll Costs 2006-2011
Federal government staff: 7.1 per cent annually Private sector staff: 3.1 per cent annually
Whatever happened to Jean Chretien?
1993: 345,942 employees 1998: 288,484 employees Annual savings: $2.3 billion
Provincial Government Payroll - $24 billion - 55% of total B.C.
Budget - A 1% raise costs
taxpayers $240 million - In 2011, 0.6% of
government workers lost their jobs – compared to 4.3% in private sector
ICBC
§ 70% spike in senior management compensation over 5 years
§ 54 employees made $200,000 or more
§ Used Canada Mortgage and Housing Corporation, federal government and Alberta government as pay comparators
13-‐03-‐07
3
B.C. Hydro ¡ “Gold Standard” corporate
culture ¡ Compensation “considered
very generous.” ¡ 99% of employees got
performance bonuses ¡ $42 million in bonuses paid out
¡ 41% employee growth in 5 years ¡ Overtime now 11% of total
salaries paid
Community Living B.C.
¡ 30 employees making $100,000+ ¡ Six making $150,000+
¡ Executives got bonuses when entire province was lashing organization ¡ Later changed to “holdbacks”
¡ Fired CEO was “earning” $230,000 a year
B.C. Ferries ¡ David Hahn, “The Million Dollar Man” ¡ Over six years, increased his pay from
$228,000 to $1.2 million a year ¡ Retired with a $315,000 indexed,
annual pension ¡ During that time, B.C. Ferries went
from $49.9 million profit to $20 milion loss.
¡ Fares increased 45 to 80 per cent ¡ 60 per cent of Ferries employees earn
more than $89,000 a year
Liquor Clerks Private Beer and Wine Store: $11/hour
Government Liquor Store: $28/hour (inc. pension and benefits)
Teachers Private Schools: $68,000/year Public Schools: $85,000/year
(inc. pension and benefits)
Tim Hortons Private Tim Hortons: $12/hour
Government (NB) Tim Hortons: $28/hour (inc. pension and benefits)
***NB lost $260,000 last year
13-‐03-‐07
4
Susan Lambert, President, BCTF
¡ Wanted $2.2 billion in pay and benefit increases (present payroll = $2.9 billion)
¡ Advocated huge tax hike during B.C. Budget hearings ¡ 25% hike in provincial income tax ¡ Restoring 100 other B.C. Liberal tax cuts
¡ Cut everyone else’s pay to pad their own!
Provincial Government Wage Restraint - Olympic
Spendathon - Net Zero - Cooperative Gains
Kamloops 2000-2010 - 8% population
growth - 38% municipal
spending growth (operating)
- Ranked middle of municipal pack in B.C. for spending
Kamloops 2011: $153.4 million spent
$56.7 million in wages
2010: $145.8 million spent $54.1 million in wages
13-‐03-‐07
5
Employees making $75,000+
103 107
171 169 168
2007 2008 2009 2010 2011
Lifeguards Private Pool: $14.50/hour
Government Pool: $22.80/hour (PLUS pension and benefits)
Parks Workers Private Parks Worker: $14/hour
Government Parks Worker: $22.80/hour (PLUS pension and benefits)
The Pension Gap Government Workers Private Sector
¡ Retires at age 63.5
¡ 19.4% have workplace pensions
¡ 49.3% have defined benefit pensions
¡ Prime retirement driver: RRSP savings
¡ Retires at age 60.7
¡ 89.8% have workplace pensions
¡ 95.6% have defined benefit pensions
¡ Prime retirement driver: taxpayers
13-‐03-‐07
6
The Solutions
¡ A Compensation Equity Act
¡ Pursuing the Penticton Path
Compensation Equity Act ¡ Could make it illegal to pay government
employees more than private sector counterpart
¡ Could cap government-funded pensions to annual household income
¡ Could change pension plans to defined contribution or, better yet, dollar for dollar RRSPs
Act Benefits ¡ Could create a database of research on
pay and benefits across B.C. ¡ Use real comparators, not government
monopolies
¡ Could rein in provincial and municipal spending and provide more accountability
¡ Could create a skilled team of negotiators working for taxpayer interests
Act Addresses The Future ¡ We can’t afford to overpay the market for
labour ¡ Labour most significant cost for any
government
¡ Taxpayers pay 42% of income to various levels of government
¡ Unfunded liabilities in federal & provincial pensions now at $254.2 billion ¡ Will worsen
Public Support ¡ Angus Reid Survey: ¡ 74% of B.C. residents think it’s unfair
government workers get pay and benefit packages higher than private sector
¡ 80% think compensation should be brought into line with private sector
¡ 78% says we can’t afford to pay more to government employees
¡ 72% support Compensation Equity Act
Pursuing the Penticton Path
13-‐03-‐07
7
The Penticton Path
¡ Three straight property tax freezes
¡ Cut number of employees earning $75,000 from 75 to 59
¡ Lowered starting CUPE wages by $5 per hour
¡ Found efficiencies through a variety of means
Elections 2013 and 2014
¡ Provincial May 14, 2013 ¡ Will they control labour costs? ¡ How will they pay for raises? ¡ Would they support Compensation Equity?
¡ Municipal November 15, 2014 ¡ Will they control labour costs?
¡ How will they pay for raises? ¡ Will they adopt Penticton’s model?
Questions? www.taxpayer.com Twitter: @jordanbateman