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Labour Pains Canadian Home Builders’ Association Central Interior Kamloops | March 13, 2013

Canadian Taxpayers Federation ¡ Not for profit advocacy organization,

eight offices across Canada

¡ Accepts no government funding ever

¡ Funded by after-tax, free will donations from 21,000+ individual Canadians

¡ Dedicated to three things: lower taxes, less waste, more government accountability

Private-Public Pay Gap

¡  Public sector workers (federal, provincial and local) in B.C. earned wages 13.6% higher, on average, than their private sector counterparts in 2011

¡  That premium doesn’t include better pensions or benefits

Federal Government Employees

2006: 336,831 2011: 379,760 2016: 349,000

Federal Government Average Salary

2006: $86,000 2011: $111,379 2016: $129,800

Federal Government Total Payroll

2006: $29 billion 2011: $42.3 billion 2016: $45.3 billion Current National Debt: $608 billion

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Canadian Payroll Costs 2006-2011

Federal government staff: 7.1 per cent annually Private sector staff: 3.1 per cent annually

Whatever happened to Jean Chretien?

1993: 345,942 employees 1998: 288,484 employees Annual savings: $2.3 billion

Provincial Government Payroll -  $24 billion -  55% of total B.C.

Budget -  A 1% raise costs

taxpayers $240 million -  In 2011, 0.6% of

government workers lost their jobs – compared to 4.3% in private sector

ICBC

§ 70% spike in senior management compensation over 5 years

§ 54 employees made $200,000 or more

§ Used Canada Mortgage and Housing Corporation, federal government and Alberta government as pay comparators

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B.C. Hydro ¡  “Gold Standard” corporate

culture ¡  Compensation “considered

very generous.” ¡  99% of employees got

performance bonuses ¡  $42 million in bonuses paid out

¡  41% employee growth in 5 years ¡  Overtime now 11% of total

salaries paid

Community Living B.C.

¡  30 employees making $100,000+ ¡  Six making $150,000+

¡  Executives got bonuses when entire province was lashing organization ¡  Later changed to “holdbacks”

¡  Fired CEO was “earning” $230,000 a year

B.C. Ferries ¡ David Hahn, “The Million Dollar Man” ¡ Over six years, increased his pay from

$228,000 to $1.2 million a year ¡ Retired with a $315,000 indexed,

annual pension ¡ During that time, B.C. Ferries went

from $49.9 million profit to $20 milion loss.

¡ Fares increased 45 to 80 per cent ¡ 60 per cent of Ferries employees earn

more than $89,000 a year

Liquor Clerks Private Beer and Wine Store: $11/hour

Government Liquor Store: $28/hour (inc. pension and benefits)

Teachers Private Schools: $68,000/year Public Schools: $85,000/year

(inc. pension and benefits)

Tim Hortons Private Tim Hortons: $12/hour

Government (NB) Tim Hortons: $28/hour (inc. pension and benefits)

***NB lost $260,000 last year

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Susan Lambert, President, BCTF

¡ Wanted $2.2 billion in pay and benefit increases (present payroll = $2.9 billion)

¡ Advocated huge tax hike during B.C. Budget hearings ¡ 25% hike in provincial income tax ¡ Restoring 100 other B.C. Liberal tax cuts

¡ Cut everyone else’s pay to pad their own!

Provincial Government Wage Restraint -  Olympic

Spendathon -  Net Zero -  Cooperative Gains

Kamloops 2000-2010 -  8% population

growth -  38% municipal

spending growth (operating)

-  Ranked middle of municipal pack in B.C. for spending

Kamloops 2011: $153.4 million spent

$56.7 million in wages

2010: $145.8 million spent $54.1 million in wages

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Employees making $75,000+

103 107

171 169 168

2007 2008 2009 2010 2011

Lifeguards Private Pool: $14.50/hour

Government Pool: $22.80/hour (PLUS pension and benefits)

Parks Workers Private Parks Worker: $14/hour

Government Parks Worker: $22.80/hour (PLUS pension and benefits)

The Pension Gap Government Workers Private Sector

¡ Retires at age 63.5

¡ 19.4% have workplace pensions

¡ 49.3% have defined benefit pensions

¡ Prime retirement driver: RRSP savings

¡ Retires at age 60.7

¡ 89.8% have workplace pensions

¡ 95.6% have defined benefit pensions

¡ Prime retirement driver: taxpayers

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The Solutions

¡  A Compensation Equity Act

¡  Pursuing the Penticton Path

Compensation Equity Act ¡  Could make it illegal to pay government

employees more than private sector counterpart

¡  Could cap government-funded pensions to annual household income

¡  Could change pension plans to defined contribution or, better yet, dollar for dollar RRSPs

Act Benefits ¡  Could create a database of research on

pay and benefits across B.C. ¡  Use real comparators, not government

monopolies

¡  Could rein in provincial and municipal spending and provide more accountability

¡  Could create a skilled team of negotiators working for taxpayer interests

Act Addresses The Future ¡  We can’t afford to overpay the market for

labour ¡  Labour most significant cost for any

government

¡  Taxpayers pay 42% of income to various levels of government

¡  Unfunded liabilities in federal & provincial pensions now at $254.2 billion ¡  Will worsen

Public Support ¡  Angus Reid Survey: ¡  74% of B.C. residents think it’s unfair

government workers get pay and benefit packages higher than private sector

¡  80% think compensation should be brought into line with private sector

¡  78% says we can’t afford to pay more to government employees

¡  72% support Compensation Equity Act

Pursuing the Penticton Path

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The Penticton Path

¡  Three straight property tax freezes

¡  Cut number of employees earning $75,000 from 75 to 59

¡  Lowered starting CUPE wages by $5 per hour

¡  Found efficiencies through a variety of means

Elections 2013 and 2014

¡  Provincial May 14, 2013 ¡  Will they control labour costs? ¡  How will they pay for raises? ¡  Would they support Compensation Equity?

¡  Municipal November 15, 2014 ¡  Will they control labour costs?

¡  How will they pay for raises? ¡  Will they adopt Penticton’s model?

Questions? www.taxpayer.com Twitter: @jordanbateman