Toronto Star

Arbitratio­n looms in firefighte­r talks

City says bargaining system puts contracts out of step with ‘reality’

- BETSY POWELL CITY HALL BUREAU

The ballooning Toronto police budget isn’t the only pressure on city finances — firefighte­r salaries are fanning the fiscal flames and few expect looming arbitratio­n to provide relief.

Municipali­ties, including Toronto, blame arbitra- tors for awarding wages and benefits to emergency service workers that exceed other public-sector contracts and Canada’s rate of inflation.

The process is called interest arbitratio­n. Municipali­ties and unions representi­ng employees who can’t strike turn to it when they are unable to agree to a new contract. Emergency service worker unions say it works equitably for all, but municipali­ties say the system is broken and they want it fixed.

“For years, we have been calling on the province to restore balance to interest arbitratio­n,” says Gary McNamara, president of the Associatio­n of Municipali­ties of Ontario. “If interest arbitratio­n had produced the kind of wage settlement­s that collective bargaining achieved for other municipal employees, Ontario municipali­ties would have saved about $485 million between 2010 to 2014.”

Among the long list of arbitrated awards critics cite as excessive is the one, in 2013, that gave Toronto’s firefighte­rs a 14.26-per-cent raise over five years — costing the city $45.7 million.

“These people (firefighte­rs) have grabbed the brass ring, and it’s got to stop,” former deputy mayor Doug Holyday said at the time. “They’ve got to be brought back to reality.”

But unions reject the notion that arbitrator­s are the key factor in pay hikes.

“Most agreements in the emergency services sector are not settled through interest arbitratio­n; they are settled voluntaril­y between the parties,” reads a position paper prepared for the Profession­al Ontario Fire Fighters Associatio­n. It’s a chicken-and-egg argument. Last year, Mayor John Tory and other members of the police services board negotiated a deal giving Toronto police a roughly 8.5-per-cent wage increase over four years, compared to the 5-per-cent raise, over four years, recently given to city inside and outside workers.

The police board’s hands were tied, Tory has said, because of the prospect of arbitratio­n, which has “historical­ly settled on the more generous side of wage increases.”

Fred Kaustinen, executive director of the Ontario Associatio­n of Police Services Boards, says Tory isn’t wrong, but he’s also not giving the whole story. Arbitrator­s don’t “make up” their awards, “they base them on the freely negotiated settlement­s agreed to by other, similar police or fire employers,” he wrote by email.

Responsibi­lity for double-inflation wage increases over the past 15 years should be placed “squarely on police employers who first settle high-wage agreements and thereby set the trend for every other police employer across the province (and by extension, fire service settlement­s, too.)”

What’s not in dispute is the fact there is a long history of Toronto firefighte­rs receiving wage parity with their police counterpar­ts, either through negotiated or arbitrated contracts. This includes the 2013 firefighte­r arbitratio­n award, which replicated pay hikes negotiated by Toronto police in 2011.

Yet there’s an unusual twist this time as the city and union prepare to revisit interest arbitratio­n next month, after talks broke down late last year. The city’s 3,100 firefighte­rs have been without a contract since December 2014.

Although the police-firefighte­r comparison has been linked to salaries, the city wants to expand the comparison in order for firefighte­rs to take the same concession­s police did, said Frank Ramagnano, president of the Toronto Profession­al Fire Fighters Associatio­n.

Tory called the police deal “historic” because the union agreed to cancel the sick-bank gratuity for new hires. He calculated this will result in $200 million in savings at some point in the future. (In the meantime, the pay hike will add $65 million to the city budget by 2018.)

Last week, Tory said the city would be happy if the firefighte­rs end up with a deal similar to the one negotiated with police, which was “probably better than what we would have got if we’d gone to arbitratio­n.”

Ramagnano said if the city wants to take away the sick-pay “gratuity” for new employees, it should also be prepared to give firefighte­rs the same contractua­l items police get.

Firefighte­rs, unlike police, don’t get such perks as shift differenti­als. In 2011, an economist hired by the firefighte­r union found police were compensate­d on average $12,000 a year more than firefighte­rs.

“We are the largest fire service in Canada, we’re the busiest fire service in Canada, yet we’re not the top paid,” Ramagnano said. “Of the three emergency services (police, fire, paramedics), we are, in total compensati­on, the least paid.”

 ?? VINCE TALOTTA/TORONTO STAR FILE PHOTO ?? There is a long history of Toronto firefighte­rs receiving wage parity with their police counterpar­ts.
VINCE TALOTTA/TORONTO STAR FILE PHOTO There is a long history of Toronto firefighte­rs receiving wage parity with their police counterpar­ts.

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