We might just see a twister and a strike of lightning simultaneously if Council can pass today's budget unscathed.
Here are the final set of recommendations for Council to consider for approval today.
What strikes me as new and significant in the mix is this:
“2. Proposed Exempt Salary Increase
Recognizing the difficult economic and market conditions, low wage inflation rates and the challenging financial position of the City, the Corporate Management Team has recommended that the planned salary increase for exempt staff (across the City and its Boards) of 4% be changed to a 2% increase commencing January 1, 2010 followed by the remaining 2% increase on July 1, 2010. The Library Board & Police Board will be requested to formally consider this proposed change. CMT has recommended that the estimated savings of $650,000 from this adjusted increase be removed from Boards and departmental budgets and added to the Contingency Reserve, increasing it from $5.3 million to $5.95 million.
This shows that not only is CUPE having to take hits with regards to its membership, but that management is also offering a concession to make this budget work within the current framework of deficit and uncertainty. This means that non-unionized staff will only get half of the four per cent raise offered to unionized workers on January 1, 2010 with the balance to be paid on July 1, 2010.
VACMPS, which is the association that represents exempt staff at City Hall, surveyed its membership a few weeks back to see what could be done with regards to the incoming wage hike.
Now while I would have liked the union and exempt staff to step forward together to say that they would all forgo their increases, that was never going to happen. Therefore, if this move by exempt staff can save the City $650,000 that will go directly into the contingency reserve to mitigate any risks associated with future revenues, then it is a good thing.
At the end of the day, the City cannot ask exempt staff to give up what unionized workers will not. So, this seems to be the best compromise that was possible under the current circumstances.
I will check back in later in the day with some post-passage budget thoughts.
