Leaked gov’t employee email creates huge controversy in BC

July 9, 2009 by PEA Blogger

Email has been a very touchy subject lately, as has privacy. This story proves that you should never consider email private:

Leaked document shows BC welfare caseload severely underestimated, cuts coming

Internal documents leaked from a B.C. bureaucrat’s e-mail suggest the government miscalculated the number of people expected to be on welfare by the year 2012 by about 28 per cent — a mistake that could lead to a $98-million budget shortfall, according to New Democratic critics.

“At present, B.C. [Employment and Assistance] caseload is expected to peak at 147,000 in June 2010,” states a document acquired from the Ministry of Housing and Social Development.

The new numbers are a marked contrast to provincial budget figures for 2009/10 to 2011/12, which project the social assistance caseload at 115,182 for the year 2010/11, and 111,510 for 2011/2012. The budget suggests that a one-per-cent change in the average caseload will affect spending by about $3.5 million annually. That translates to a $98-million shortfall.

Vancouver-Hastings MLA Shane Simpson said he questions how long the government had these numbers and accused the Liberals of trying to hide the figures from the public.

“They produced this document at the beginning of June. When did they know these numbers? When did they have this information prior to releasing it? Did they have this information in the middle of the election and choose not to release it? It may well be the case,” said Simpson, the NDP housing and social development critic.

Housing and Social Development Minister Rich Coleman didn’t discount the numbers, but said they represent not a shortfall but a budget “pressure.”

“We know the welfare lists have gone up, but we don’t cut people off because of a budget pressure.”

Coleman said he’s “not fussed” about the leak from within his staff. “It’s unfortunate that Shane decides to fearmonger among the public that needs the help the most . . . . We’re not going to cut social assistance and to suggest otherwise is socially irresponsible.”

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BCGEU warns that 230 positions in the Forests Ministry are on the chopping block

July 8, 2009 by PEA Blogger

As part of a 12% budget cut, the union is warning that 230 positions may be axed soon:

BCGEU Warns of Forest Ministry Cuts

The union representing most of the B.C. Government employees says the axe is ready to fall on 230 positions in the Forests Ministry.  The B.C. Government and Service Employees Union says the ministry officials have outlined plans to implement a 12% budget cut in 2009/2010.

The union says the news came out at a recent labour management meeting.  Officials claim the Ministry told the union they are unsure of exactly what cards they will be dealt by the new Liberal budget which is due September 1st.  The union says the plan is to implement a cut of $96 million by March 31, 2010.  The cuts would come from a combination of the 230 job cuts, reduced spending, rejigging functions such as compliance & enforcement to work ‘smarter’ and cheaper, and collaborating with other ministries on spending items such as road engineering.

The BCGEU says Ministry officials have said the goal is to not have any current employee pushed out of work. They are pursuing cuts through normal attrition, filling only critical vacancies, filling those vacancies internally, deleting as many vacancies as possible, and using lateral transfers-including to other ministries-using the Opportunities and Skills Database.

The union says it’s concerned about permanent shrinkage and loss of valuable services provided by the forest ministry, the potential for impossible workloads for remaining staff, and the economic impact of job losses on forestry communities that are already hurting from the downturn in the economy.

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Toronto strike brings attention to the difference in public and private sector compensation

July 7, 2009 by PEA Blogger

The numbers don’t lie:

Toronto strike shines spotlight on public, private-sector compensation

Growing public anger over Toronto’s municipal strike has shone a spotlight on disparities between compensation in government jobs and the private sector, analysts say.

And as a “demographic tidal wave” prepares to wash over the workforce, public frustration will continue to build over massive differences in wages, benefits and pensions, noted Judith Andrew, Ontario vice-president of the Canadian Federation of Independent Business.

“That really is going to be very divisive for our society,” she said. “It’s like reverse Robin Hood. Why should people with modest pensions be having to pay very onerous taxes to top up these rich pensions for . . . public servants?”

A recent CFIB report based on 2006 census findings shows government and public-sector employees are typically paid between eight and 17 per cent more than similarly employed individuals in the private sector. When other benefits are taken into account, the number rises to more than 30 per cent.

“Expressed in dollar terms, public-sector employers have a combined wage and benefits bill that is $19 billion higher than if they had kept costs to private-sector norms,” the report says.

One example is a cashier employed by the City of Toronto, who at the top of the scale would make $27.82 per hour, compared to about $12 in the Ontario private sector.

Paul Moist, national president of the Canadian Union of Public Employees, acknowledges there is a wage gap in Canada, but maintains the disparity is based on unionization, not on public versus private. A unionized cashier in the private sector, for example, is compensated similarly to a unionized cashier in the public sector, he said.

As a general rule, unionized employees earn higher wages and benefits, Moist said, “which we would argue is a good thing.”

The average salary for a CUPE worker countrywide is about $35,000.

In Toronto, workers have been organized to varying degrees for almost a century, and that is reflected in their benefits and pay, Moist said. The current city strike is not a wage grab, but an attempt to maintain benefits that other city workers have not been asked to give up, he said.

Toronto residents are seeing the fallout as garbage is spilling over curbs in the downtown core while the city negotiates with 30,000 striking workers who are angry over the city’s attempt to change sick leave benefits. The program allows workers to bank 18 sick days every year and cash out a chunk of those upon retirement.

Andrew argues unions have historically abused their right to strike, withdrawing key services — such as monopolized garbage collection — in order to pressure municipalities for generous contract perks.

“Unions have an excessive amount of power,” Andrew said. “They’ve been able to hold the public to ransom for their own game, and it’s been done largely behind the scenes.”

Rather than drawing up collective agreements in a “confrontational labour relations environment,” she said, union and city negotiators should look to set compensation by finding fair matches in the private sector.

“It really is a slap in the face . . . that the government taxes (small businesses) very heavily in order to compensate staff at levels that our small business members can’t even hope to pay,” Andrew said, noting the government has “no bottom line at all.”

“They can just go back and ask the taxpayer for more.”

Comparing wages

Hourly wages earned by some Toronto city employees at the top of their seniority level:

Arborist inspector $32.68; compared to about $26 in the Ontario private sector

Cashier $27.82; compared to about $12 in the Ontario private sector

Cleaner, light duty $21.30; compared to about $16 in the Ontario private sector

Note: Private sector wages calculated based on provincial average for employees with 25 years of experience using PayScale.com

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Chicago union hopes to get contract for 2016 Olympic village, and says it will not face same problems as Vancouver or London

July 6, 2009 by PEA Blogger

Chicago hopes to win 2016 Olympics, AFL-CIO hope to get mega contract for village

Chicago hopes to win 2016 Olympics, AFL-CIO hope to get mega contract for village

The AFL-CIO is hoping that their own company can get the contract to build the 2016 Olympic village. It will boost pensions and alleviate layoffs in Chi-town (who are in the running to win the 2016 Olympics).

Union bets $500 million on Olympic Village plan

A powerful union is betting big time on Mayor Daley’s Olympic dream.

This week, Daley took an $86 million gamble with taxpayers’ money that a moribund housing market will come roaring back — by closing on the purchase of Michael Reese Hospital to pave the way for construction of a $1.1 billion Olympic Village.

That’s a drop in the bucket compared with the risk the AFL-CIO is about to take with its pension funds.

The AFL-CIO investment trusts and the labor-owned Union Labor Life Insurance Co. have signed a “letter of commitment” to pump $500 million into building the Olympic Village, a project alternately viewed as the riskiest element of Chicago’s Olympic bid and its enduring “physical legacy.”

Olympic Village projects in London and Vancouver have run into trouble because of the worldwide credit crunch, forcing both cities to ride to the rescue.

The labor organization’s investment could help shield Chicago from a similar disaster. It also bolsters the chances City Hall will succeed in unloading the Reese property to a master developer during the five-year window when neither principal nor interest payments are due on the 15-year, $86 million loan.

Daley plans to forge ahead with the new lakefront community — with a mix of affordable, market-rate, student and senior housing –with or without the 2016 Summer Games. The union’s investment would be contingent on Chicago winning the Olympic sweepstakes.

The deal was engineered by Tom Villanova, president of the Chicago and Cook County Building & Construction Trades Council.

Villanova was the first and, for a while, the only union representative on Chicago’s Olympic organizing committee. Not coincidentally, his union gave Daley’s 2007 re-election bid its only labor endorsement.

“It’s a win-win situation for the unions because we get all the work building the Olympic Village, and it’s a good investment in a beautiful, high-profile project on the lake,” Villanova said.

Villanova denied that the investment was risky, despite the housing slowdown and glut of unsold units.

Chicago’s downtown condo market has an inventory of 1,167 unsold units. Nearly 2,200 more under construction also remain unsold.

“These units are not gonna be put on the market for quite a while. Hopefully, the market has turned around in that time,” Villanova said.

“The people who know that business obviously think it’s gonna be fine. Otherwise, they wouldn’t have sent the letter of commitment.”

Sources said Villanova announced the union’s contribution during closed-door briefings with aldermen last month, designed to calm the furor over Daley’s pledge to sign an open-ended financial guarantee from Chicago taxpayers.

Villanova’s presence with Chicago 2016 Chairman Pat Ryan served as a warning: Aldermen contemplating derailing Chicago’s bid do so at the risk of alienating union leaders.

Sources said the insurance company would serve as a lender to various developers working on everything from housing to retail buildings in the village.

The project calls for as many as 2,600 units in 21 residential buildings, each 12 stories high. The units would be retrofitted for permanent occupancy after they are used to house 16,000 Olympic athletes during the 2016 Summer Games.

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Weekend Story: Olympic Village construction shortcuts risk mould: union

July 5, 2009 by PEA Blogger
The Olympic Village in Vancouver

The Olympic Village in Vancouver

From CBC:

Contractors taking shortcuts on the construction of Vancouver’s Olympic Village could lead to costly mould problems for future owners of the condominium units, according to a union official.

Lee Loftus, the business manager of the International Association of Heat and Frost Insulators and Allied Workers, alleges there are problems brewing behind the drywall where shoddy work may result in energy losses and a mouldy mess for future owners.

The union took photographs of some of the pipes at the athletes’ village that appear to show subcontractors installing pipes without the insulation required under Vancouver’s building bylaw.

“You have cold water pipes condensing, pooling at the bottom of the walls. You have hot water pipes beside it. That will certainly lead to mould and mildew,” Loftus said.

It also means the buildings aren’t as energy-efficient as they are supposed to be, according to Loftus.

The developer said the uninsulated pipes were an isolated problem, which has been fixed. But Loftus told CBC News he went back twice and saw no changes during construction.

City inspections underway

Vancouver city staff plan to meet Monday morning to talk about the latest controversy surrounding the $1 billion project.

City manager Penny Ballem said she wants the public to know that the city does regular inspections on the village. “If people aren’t satisfied or people have any doubt, the city will do whatever it takes that people can feel reassured and confident,” said Ballem on Sunday.

But the B.C. NDP housing critic Shane Simpson said this latest news could scare off buyers.

“They’re going to want some assurance that five to 10 years down the road they’re not looking at a significant cost to remove mould,” said Simpson on Sunday.

The Olympic Village is supposed to be a showcase for green and sustainable living, but financing problems, cost overruns, and a tight construction schedule have made it one of most controversial parts of the 2010 Winter Olympics preparations.

The city has already invested more than $450 million in the Olympic Village and owns the commercial real estate on the ground level. It hopes to make its money back when the residential condos are sold after the Olympic Games.

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Weekend Story: Jobless rate to rise globally, study says; Bad news likely through 2010

July 4, 2009 by PEA Blogger

From The Washington Times

The number of unemployed workers in the world’s wealthiest nations will continue to expand long after the global recession ends, with jobless rates jumping to nearly 10 percent, an organization of advanced economies said Tuesday.

In the 30 wealthy nations that compose the Organization for Economic Cooperation and Development, the ranks of the unemployed will soar from 37.2 million at the end of 2008 to more than 57 million by the end of next year, according to an OECD forecast issued Tuesday.

“Unemployment will continue to weigh on national economies for a long time to come,” said OECD Secretary-General Angel Gurria. “Previous downturns have taught us that the jobs recovery will lag a long way behind the pickup in economic growth.

“OECD membership ranges from the high-income nations of the United States, Japan, the Euro countries (including Germany, France and Italy), the United Kingdom, Canada, Australia and South Korea to the upper-middle-income nations of Turkey, Mexico and Poland.

The OECD average unemployment rate, which has increased from 5.5 percent during the fourth quarter of 2007 to 7.8 percent in April, will continue rising through the end of 2010, the report said. Averaging 9.8 percent in 2010, the OECD jobless rate will peak at 9.9 percent at the end of next year, according to the forecast.

Between December 2007 and April 2009, the ranks of the unemployed in OECD nations increased by 12.4 million. Since the U.S. recession began in December 2007, unemployment here has soared by 7 million as the jobless rate has jumped from 4.9 percent to 9.4 percent. In the eurozone, joblessness has increased by 3.2 million, and the unemployment rate has risen 1.9 percentage points.

Interestingly, since December 2007, the number of unemployed workers in Germany, which has suffered a deep recession, has actually declined by 72,000; and its unemployment rate has fallen by 0.2 percent, the OECD reported.In an interview with The Washington Times in March, German Ambassador Klaus Scharioth attributed Germany’s relatively stable labor market to its “short-term work” program. Under that policy, the German government pays up to 67 percent of lost wages when employers reduce work hours rather than lay off employees.

Most economic forecasters expect the U.S. economy to begin expanding during the second half of this year, although the unemployment rate is expected to continue rising well into next year. The U.S. unemployment rate used to peak near the trough of a recession, but that has not been the case after the last two economic downturns.

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Wal Mart is de-certified by judge in SK

July 3, 2009 by PEA Blogger

Message from UFCW before last weeks decision

Message from UFCW before last week's decision

A real step forward for organized labour in Canada:

Sask judge overturns Wal-Mart union certification

A Saskatchewan judge has overturned the union certification of a Weyburn Wal-Mart store, saying workers should be allowed to vote on the matter.

It’s the latest twist in a battle between the retail giant and the United Food and Commercial Workers union.

The union applied for certification in 2004 after obtaining signed union cards from most of the employees in the proposed bargaining unit. The labour relations board approved certification in 2008.

The law in 2004 was that if more than 50 per cent of employees signed cards, a secret ballot vote wasn’t required.

However, after the Saskatchewan Party won the 2007 provincial election, defeating the NDP, the law changed — an employee vote is now mandatory before certification can be considered.

Justice Peter Foley ruled the amended Trade Union Act should have been the basis of the labour board’s decision when it ruled on the Wal-Mart case in 2008.

“The UFCW had no vested right to insist on a particular procedure involving membership cards being followed by the board,” Foley said in the 11-page decision which was made public Wednesday.

“The board erred in law in not giving effect to the enactment [of Bill 6] and proceeding under the repealed procedure. This error of law rendered the certification order void.”

Foley said he was sending the certification order back to the labour relations board so a vote can be ordered.

Neither Wal-Mart nor the union was immediately available for comment.

Gordon Button, a stockroom worker who has been employed at the Weyburn store for the past year and a half, was pleased about the decision.

Button, who thinks there’s no need for a union, said employees cheered Wednesday morning when they heard the news.

“This is what I and a few more of the people, we’ve been fighting for for a long time,” he said. “The people that the union had signed up are not here anymore … and anybody that I’ve talked to and dealt with, don’t want ‘em.”

There is no word from the union on whether it will appeal. The United Food and Commercial Workers union is also trying to unionize Wal-Mart stores in North Battleford and Moose Jaw.

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Protecting local jobs in Vancouver

July 2, 2009 by PEA Blogger

Artists rendering of the new roof at BC Place

Artist's rendering of the new roof at BC Place

The Steelworkers are calling for the new roof at BC Place to be built by local contractors:

BC steel union calls for local fabrication on stadium project

It is reported that the union representing workers in BC’s steel fabrication industry wants the contract to build the new retractable roof at BC Place stadium to be awarded to a local company.

Mr Rene Watteel business manager of Ironworkers Local 712 said that “The decision to award the contract is pending and we hope to influence decision makers to give consideration to the local market. Logic tells us there are four bidders and it’s an open bid that will go to the lowest bidder. If local contractors win the contract, the fabrication will be done here. If we are not the lowest bidder, there should still be consideration for fabricators here.”

Ironworkers Local 712 and the BC Federation of Labor has sounded an urgent warning about the possible loss of 150 direct and hundreds more indirect jobs, if a major contract for part of the new USD 365 million retractable roof at BC Place is awarded outside BC.

Mr Watteel said that “We don’t work on site. Our work is done in a plant, which can be done in various places in the world. For, example the steel fabrication work for the Golden Ears Bridge was done in China. We hope this has not set a precedent for other major public works projects.”

Four bidders are on the shortlist namely Burnaby based George Third & Son, Delta based Canron Western Constructors, Ontario based Walters Group and Quebec based Canam Group. The steel fabrication involves building component parts for the retractable roof and would employ about 150 shop fabricators and erectors with about two years of work.

Mr David Podmore chairman of the BC Pavilion Corporation said that the province will benefit from the construction. However, some of the larger components can’t be produced locally. He added that “There is a substantial amount of this work that is committed to BC and a lot of jobs will be created. The installation of the roof will all be done with local labor. But, a certain amount of this work can’t be done in BC.”

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Canada Day Story: Molson free beer allocation goes flat for NL retirees

July 1, 2009 by PEA Blogger

Molson Canadian retirees denied free beer

Molson Canadian retirees denied free beer

From CBC:

A group of retirees protested outside of the Molson Brewery facility in St. John’s after the company said it was cutting the amount of free beer they get as part of their pension plan.

Molson pensioners in St. John’s used to receive six dozen beers per month as part of their benefits package. That has now been cut to one dozen per month according to a letter sent to employees across the country. The allocation will be dropped altogether in five years.

The letter says the changes have been made on account of competitive pressure and the current economy, which have forced the company to “monitor costs and look for innovative ways to control and reduce them.”

The changes weren’t going over well with pensioners in St. John’s who accused the company of arbitrarily removing benefits they were promised when they retired.

“‘There’s been no consultation with the members, and they’ve taken beer from them, which is a taxable benefit” said Greg Pretty of the FFAW/CAW, which represents approximately 45 Molson retirees in St. John’s.

“The people who brought this company to where it is today, with … sales close to 70 per cent, [which is] Molson’s market share, are now being discriminated against based on their age,” he said.

Pretty said the pensioners wanted a meeting with the CEO of Molson Canada to ensure that not only the beer allocations would be preserved but the rest of the negotiated benefits as well.

“We deserve better. They’re nickel and diming the retirees over, you know, they’re using the economic downturn to take advantage of us, said retiree Bill Bavis.

Retiree Kevin Walsh, who worked for Molson for 41 years, said the beer wasn’t a hand-out to employees; it was something they earned — and are still earning.

“Like, I’m in Butterpot [provincial park], and I take my rations with me and people come along and … [I say] ‘How are you today? … have a beer, have a beer.’ I’m still a salesman. I’m still promoting the Molson product,” he said.

A Molson representative told CBC that Molson has 2,400 retirees across the country and supplying them all with free beer was costing the company over $1 million a year.

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Update on Toronto strike

June 30, 2009 by PEA Blogger

Not much movement from either side in the CUPE-City of Toronto strike:

City strike deal ‘not an inch closer‘

Hunker down.

With the Toronto city workers’ strike now in its ninth day, a quick end to the walkout has faded.

Mayor David Miller yesterday waded into the debate, accusing CUPE Local 79, which represents 24,000 mostly inside workers, of refusing to negotiate a deal, noting there has only been six hours of face-to-face talks since the strike began.

“Both I and our city negotiators are frustrated that Local 79 negotiating team has not been responding quickly to reach a settlement,” Miller told reporters at a daily briefing, noting the union has not formally responded to the city’s wage proposals.

“Sadly, the delays in responding to city proposals is slowing the bargaining process, and delaying a quick end to this strike,” Miller said.

“If you’re not at the table negotiating, we’re not going to be able to resolve this matter.”

Local 79 president Ann Dembinski fired back, charging the city has refused to remove key concessions. The city wants to eliminate a sick-time bank, where workers can save up unused sick days and cash them out before retirement.

“Talk is cheap,” she said in an interview. “The real crux of the issue is getting a settlement. We could have a settlement in one minute if the mayor gave instructions to take those concessions off the table, and to give us the same deal he’s given every other unionized City of Toronto worker.

“If he’s trying to say that we’ve only met for six hours, he needs to ask what his negotiators are doing. They have proposals that they’ve had for months, of ours, that they’ve never responded to.”

Miller refused to say what the stumbling blocks are but insisted any settlement must reflect the economic challenges of the recession that has resulted in lower tax revenue for the city.

While the mayor said some smaller issues have been resolved, Dembinski said they are no closer to a settlement that they were before the weekend.

“No, not an inch closer,” she said bluntly. “Attacking the union will not get a settlement.”

Although the mayor didn’t single out Local 416, which represents 6,200 outside workers, union president Mark Ferguson isn’t sounding optimistic either.

“I’m less hopeful than I was previously. We realize it’s easy to take a strike, and it’s more difficult to end a strike,” Ferguson said in an interview at the Delta Toronto East hotel, where negotiations are continuing.

Premier Dalton McGuinty has also thrown cold water on the possibility of legislating the city employees back to work, saying it’s better if the two sides work out a settlement.

A similar strike by Windsor’s municipal workers is now in its 11th week.

In the 2002 Toronto strike, under premier Ernie Eves, the Tory provincial government did step in but only after 16 days.

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