City to cut 2,200 jobs over 5 years
CITY OF MONTREAL will eliminate 2,200 jobs over the next five years, acting on recommendations it abolish one out of every two positions vacant since December and replace only half those who retire or leave for other reasons. Michelle Lalonde reports on M
The city of Montreal plans to reduce its labour force by more than 2,200 posts over the next five years and invest the $240 million saved into infrastructure improvements.
In his first major move since his appointment to the director general post in December, Alain Marcoux has recommended the city abolish one out of every two posts that were vacant as of last December, except for police and firefighters. In addition, only half of those who retire or leave city employment for other reasons during the next five years will be replaced.
Marcoux, Mayor Denis Coderre and executive committee chairman Pierre Desrochers announced the fiveyear labour-force reduction plan at a news conference Thursday morning, along with a reworked capital investment program that extends over a 10-year period, rather than the usual three.
“Instead of making decisions on an annual basis, or instead of managing human resources department by department, we are going to plan our (staffing) needs over a fiveyear period,” Coderre said.
This is all part of what Coderre calls a major administrative reorientation that is long overdue.
Montreal’s last three-year capital investment program recommended spending of $1.3 billion annually to maintain and improve infrastructure, buildings and equipment, but that is about $800 million short of what is required, says a recent analysis by city department heads.
Since Coderre has promised to limit tax increases to the rate of inflation, and because the city cannot continue to borrow money to pay for infrastructure renewal, job cuts are inevitable, Coderre said. (Only 16 per cent of the city’s capital investments are paid in cash. The job cuts would allow the city to cover 43 per cent of those investments up front, rather than borrowing.)
“This is not an option. It is a necessity. While complying with collective agreements, we will take measures to reduce the number of employees and the annual wage budget, and the resulting budgetary leeway will (allow us to) fulfil our goals, in terms of rebuilding infrastructures and satisfying other needs expressed by Montrealers.”
Over 10 years, these moves will result in savings of $2 billion, Coderre said, most of which will be used to maintain and improve the city’s infrastructure and equipment.
Salaries and related benefits represent more than half of the city’s budget, and salaries have been taking more and more of the overall budgetary pie.
In 2002, wages represented 42.5 per cent of the budget. By 2013, 51.9 per cent of the budget went to wages. The number of people employed by the city of Montreal and its boroughs has increased by 12 per cent during that period, from 20,009 full-time equivalent positions in 2002, to 22,423 in 2013.
In fact, the city plans to cut 2,700 jobs over five years. The global reduction is 2,200 because the administration plans to create 500 new positions for “new priorities,” such as the inspector general’s office, which will have 25 employees.
“We don’t intend to lay anybody off, but when a position becomes vacant, we won’t replace it,” the mayor said, adding he does not believe the growth in the labour force during the last decade has resulted in an increase in services to citizens.
Coderre insisted services to citizens will not suffer even as more than 2,000 city jobs disappear, but he hastened to reassure his employees that he has great respect for them.
“We have extremely competent employees who do extraordinary work. We are proud of you and you have all my confidence. These measures are not directed against you,” the mayor said.
“I assure you we will not make wild cuts, nor will there be massive layoffs. We are targeting only vacant posts, and all of this obviously will be done while respecting our collective agreements.”
The boroughs would be encouraged to follow the same guidelines of eliminating one of every two positions that are vacant or that become vacant during the next five years, Coderre said. It would be to their advantage because when borough positions are eliminated, the savings will stay with the borough administration to be used for borough activities.
Official opposition leader Richard Bergeron said he doubts the Coderre administration can make these job cuts without severely reducing services.
“We agree there needs to be administrative reform so there is more money to invest in infrastructure, but the way they are proposing to do it won’t work,” Bergeron said in an interview.
He noted that the cuts will not touch police (4,272 jobs) or firefighters (2,430 jobs), and since the city has to respect minimum staffing levels outlined in the collective agreements of the blue-collar workers (another 4,620 positions), that doesn’t leave a lot of room to cut.
Bergeron said he is concerned the mayor may be planning to privatize certain services, like libraries.
Instead, he said, the city should be targeting managers, since the manager-employee ratio is one manager for every 9.5 employees, while the average in the private and public sector is more like one in 13.
“We would reduce the number of managers by 563, saving $95 million per year,” Bergeron said.
Bergeron also said wages paid by the police department are out of control, growing by 51 per cent during the past five years despite a reduction of 174 positions in the department.
Rosemont borough Mayor François Croteau said the mayor should have consulted boroughs before deciding they can cut positions as easily as the central city operation can.
“Boroughs are responsible for giving services to citizens directly and to give services, you need employees. We are talking about a reduction of one in 10 employees. It is certainly going to affect services. Cutting positions means closing libraries or pools, for example,” he said.