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Someone will have to pay for a Two-Tier Job System

Ally

Research Assistant
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Joined
Mar 24, 2009
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Toronto`s garbage strike is about as popular as a skunk at a picnic. As the streets get messier and smellier, public support for the union seems to be hovering at zero. Why? Because the garbage workers are striking to hang on to benefits unknown to the rest of us, including a cushy deal that allows them to pile up sick days and cash them in when they retire. The sick days have caused public outrage. But they`re the tip of the entitlement iceberg. Across the country, the compensation gap between public- and private-sector jobs has grown increasingly wide.

The garbage workers are typical. Their hourly wage is about 20 per cent higher than in the private sector. They have a gold-plated benefits plan, to which they contribute not a cent. After 10 years service, their jobs are guaranteed. Workers with top seniority get seven weeks vacation. Then there`s the pension - a generous defined benefits plan, guaranteed by you and me.

A stunning piece of research by the Canadian Federation of Independent Business has chronicled the public/private wage gap. It found that public-sector workers across Canada earn 8 per cent to 17 per cent more than people with similar jobs in the private sector. The public-sector wage advantage is now 11.9 per cent for municipal workers, 7.9 per cent for provincial workers and 17.3 per cent for federal workers.

That`s just half the story. They also get better benefits and pensions. Their work weeks are shorter (typically 33.5 hours, versus 37.3 in the private sector), and they get more vacation and sick leave. Once you calculate the value of the benefits and shorter work time, the total compensation advantage adds up to 35.9 per cent for municipal workers, 24.9 per cent for provincial workers and 41.7 per cent for federal workers.

Read the full article here.
 
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