Minister insists teacher contracts are ‘net zero’

Ontario’s Liberal government insisted Wednesday that despite a $300-million price tag to set up new benefit trusts for teachers, their recent contracts are “net zero.”

The nine central teachers’ and education workers’ contracts include a total of $402 million in salary increases, which is approximately the amount of savings the government says it is getting through changes to previously banked sick day payouts, cancelling some deferred spending, delaying salary grid bumps and other measures.

The government trumpeted the deals as being “net zero” when they were reached, mostly last fall, but the extra cost was revealed this week as the contracts were made public.

Establishing five health, life and dental trusts for the teachers and education workers will cost $175 million, with a further $125 million needed to consolidate the more than 1,000 existing plans, the government said. That money doesn’t count in the assessment that the contracts are “net zero,” said Education Minister Liz Sandals.

“We have always said increases to compensation will be offset by other savings,” she said.

“This isn’t a compensation cost. Nobody’s ending up with money in their pocket as a result of this. This is an investment which, over time, will allow us to administer things more cheaply to even benefits out.”

NDP Leader Andrea Horwath said she’s not sure that’s what people thought the government meant by “net zero.”

“Obviously, the government was selling an idea to Ontarians about net zeros, but again, when the onion is peeled back, when the layers are peeled back, it’s obvious that that’s not what they were doing,” she said.

Progressive Conservative Lisa MacLeod asked in question period Wednesday, “How does net zero equal $300 million?

“I know the premier is not an accountant, but that’s 300 million more dollars than she told this house,” she said.