City buyouts will hurt services

Toronto's plans to offer buyout packages to municipal workers will inevitably lead to more service cuts, the head of one of the workers' unions warned.

Mark Ferguson, the president of CUPE Local 416, made those comments one day after the city said that it planned to offer the packages to some 17,000 municipal workers as it tries to pare a $774-million budget shortfall. His union represents the city's outside employees, including garbage workers.

Ferguson said Wednesday continued cuts are harming the city. He noted that his union has lost about 30 per cent of its members since 2005 because of a hiring freeze.

"So any further reduction in staff would definitely translate into service cuts for residents," Ferguson told CBC's Metro Morning.

"You can't have services without employees. And we know that the downsizing over the last number of years has got to the point that it will definitely impact services if there are further reductions in staff."

The city isn't sure how much the buyouts will cost because it's not known how many people will take the offer.

The deadline for workers to accept the voluntary offer is Sept. 9.

Labour costs account for 45% of budget

Union, non-union and management employees are all being offered buyouts of up to six months salary. Police, transit and library workers are not included.

About 45 per cent, or $4.6 billion of the city's operating budget, is earmarked for salaries and benefits.

Richard Majkot, executive director of the City of Toronto Administrative, Professional and Supervisory Association, also fears that the residents will suffer from the cuts.

"My concern is that the city is going to gut key people and won't be able to deliver the services to the citizens of Toronto. That's very important," Majkot said. "Municipalities are labour intensive businesses."

But the city's budget chief Mike Del Grande said the city has no choice but to make the cuts given its serious financial situation.

"It's a very delicate situation that we find ourselves in but it is a position that we have to undertake in order to correct our structural problem here at the City of Toronto."

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Source: CBC news