Date: August 26, 2010
Written by Robert Benzie
Published by the Toronto Star

Secret wage-freeze talks between the provincial government and unions representing tens of thousands of health-care and education workers have quietly collapsed, the Star has learned.

Sources said the “seven days a week, night and day” negotiations that began Aug. 9 at the Fairmont Royal York hotel fizzled out last Sunday when the sole remaining union walked away from the bargaining table.

About a dozen unions, including the Canadian Auto Workers (CAW) and the Service Employees International Union (SEIU), had been participating in the discussions, which were held under a gag order.

Finance Minister Dwight Duncan is seeking a two-year wage freeze concession from more than 1 million public service workers in order to help the government tackle its $19.7-billion budget deficit.

While Duncan announced the restraint measure in his March budget and met with labour leaders last month to tout the belt-tightening, the Liberals have kept a tight lid on the fact discussions are even being held.

Insiders say suites and a ballroom at the hotel were booked for the round-the-clock talks that started more than two weeks ago with no fanfare and are supposed to conclude Sept. 9.

“The process was confusing and it was unclear what was actually on the agenda, in terms of sectors,” one participant said Wednesday.

It was so bad that the CAW – which represents about 20,000 health-care workers, mostly in long-term care homes, and 2,500 university workers – stormed out on Aug. 10, just one day into the negotiations.

On Aug. 18, the Canadian Association of University Teachers, which represents 65,000 academic staff across the country, advised Queen’s Park that it was also abandoning the process.

“We … do not accept the government’s premise that compensation is the cause of the current financial situation,” according to an internal memo from the association to the government.

“Nor its determination, made even before commencing its consultation process, that a two-year wage freeze singling out public sector employees is the only way to deal with the province’s fiscal situation,” the missive continued.

Finally, on Sunday, the SEIU, which represents about 46,000 workers in long-term care homes and which was the lone union still at the table, left as well.

Duncan was not available Wednesday, but an aide emphasized the talks have only just begun.

“These consultations have been and are scheduled to take place in a number of phases over the next several weeks,” said Andrew Chornenky.

“We are still in the first phase – facilitating a dialogue between unions and employers and clarifying the intent of the policy,” said Chornenky.

“Some unions are engaged in internal preparations – for example, getting mandates from their members for these discussions,” he said.

“We’re still open to continuing discussions with this group and any other and dates for meetings will continue to be scheduled (or) rescheduled as necessary.”

Sources say the government hopes a new round – this time with officials from the Canadian Union of Public Employees and other public-service unions who have previously said that they oppose the freeze – could begin as early as next week.

Officials said the Royal York was selected as the venue because its rate of $5,160 was the cheapest available in a competitive bid against four other hotels.

NDP Leader Andrea Horwath blasted Premier Dalton McGuinty’s government, saying the entire exercise is futile.

“Only the McGuinty Liberals could hold discussions then say there’s nothing to discuss,” said Horwath.

“It’s a recipe for disaster when they’re telling frontline nurses to make more sacrifices while billions flow out the door to hospital CEOs and Ontario’s biggest corporations,” she said.

Progressive Conservative MPP Lisa MacLeod (Nepean-Carleton) was flabbergasted to learn the bargaining was taking place at the tony Royal York.

“Why use the free space that the government already owns when you can pay for the most luxurious hotel in town?” said MacLeod.

“Middle-class families who are already getting hosed are really going to appreciate this,” she said.

The wage freeze – which could last beyond 2014, depending on when a contract is signed – would affect 710,000 unionized employees and 350,000 managers and other non-bargaining workers in the broader public sector.

Salaries for teachers, nurses, bureaucrats and other public service workers account for about 55 per cent of all provincial government program spending.