Wynne cracks down on salary hikes
Premier calls for modesty in all public-sector pay raises
Public agencies, such as Ontario Power Generation and community colleges pushing huge raises for their bosses are “gaming the system” as a five-year pay freeze comes to an end, Premier Kathleen Wynne says.
Her Liberal government issued a detailed directive Friday to 345 public sector agencies, including the LCBO, schools, universities and hospitals, which ordered any raises to be “modest” with “low annual percentage increases.”
The crackdown came after several colleges unveiled plans to hike presidential salaries up to 50 per cent and OPG boosted the pay ceiling for its chief executive Jeffrey Lyash, who now earns $1.5 million, to $3.8 million.
“It’s hard for anyone to understand how those salaries could be so out of whack,” Wynne said firmly, a day after she signalled action was coming.
“People in Ontario are struggling with costs in their lives every single day,” the premier added, acknowledging the pay review process that began last fall is off to a “false start.”
“This isn’t about gaming the system; this is about being responsible.”
Wynne said the reason she didn’t set numerical limits is to give agencies the freedom to find “reasonable” salary comparators at similar organizations and come up with their own solutions.
Agencies refusing to fall in line will see their compensation plans rejected and have to start over, said Treasury Board president Liz Sandals, who is in charge of internal govern- ment finances.
She warned the government will be “closely monitoring” the situation at public sector employers and apologized for “insensitive” remarks about Ontarians concerned over millions in proposed pay raises.
The controversial comment came Thursday when she was asked how citizens struggling to pay their hydro bills or stuck in a delayed GO train would feel about OPG raises or a proposed $118,000 boost in the pay ceiling for Metrolinx chief executive Bruce McCuaig, who now earns $361,000.
“Most of the people sitting on the GO train probably don’t have highlevel nuclear qualifications or the business qualifications to run a multi-billion-dollar corporation,” Sandals told reporters.
In her mea culpa, Sandals added: “I work hard to make sure that every dollar of public money is well spent.” New Democrat MPP John Vanthof was flabbergasted by Sandals’ initial remarks.
Progressive Conservative Leader Patrick Brown called them “insulting.”
“The president of the Treasury Board took the opportunity to defend outrageous public sector CEO pay raises and to insult the intelligence of commuters,” Vanthof said.
“It’s no wonder that Ontarians are increasingly fed up with this arrogant and out-of-touch Liberal government.”