Tuesday, June 9, 2009

The Politics of the Endless Strike

City of Windsor employees are almost into week 9 of what has been, so far, a failed strike, if you are a CUPE member. Media reports tell us there is one, and only one, issue dividing the Windsor City Council, and the striking employees. That issue is, post retirement benefits, for anyone hired after January 1, 2009. To have or not to have, that is the big question.

Over the past week, a major crack in solidarity, has been exposed at Windsor City Council. Council members voted, 8 to 3, against sending the outstanding issue or issues to arbitration. It has taken eight weeks, but three council members have fallen off the wagon.

This question of post retirement benefits has caused, a lot of pain, division, the demonization of city employees by the local Windsor Star newspaper, and really wonderful publicity for the city, and all the rest of us in the Essex County region. Yes we are looked at as a region especially by investors.

The City of Windsor Council says, retiree benefits are a huge unfunded liability. In truth it is very big!! Actuarial reports indicate the unfunded liability, for retiree benefits, (pensions are a separate matter) is greater than $290,000,000!! The Council maintains, hard pressed taxpayers can't afford to pay future retirement benefits, of employees it will hire after January 1, 2009.

Yet it appears the city can afford the "status quo" for all existing employees, and even offer some wage increases in spite of the "Great Recession". In very general terms, the City is offering full time employees $1,000; part time employees will get $500, over the term of the new contract.

The city's website call these increases, incentives, and states "incentive payments will be structured in a manner aimed at making them pensionable in compliance with OMERS guidelines".

The other notable thing about all this, according to the city website, is that the parties are negotiating a possible 2 year contract. If the economy improves just the slightest, will we have to do this all over again in 24 short months??

Just to re-cap for our readers:
  • CUPE Local 82 with almost 400 outside workers on strike
  • CUPE Local 543 with 1400 inside workers on strike
Why do I highlight the above? Politics, votes and more votes! People who feel they have been injured by government are highly motivated to vote. They vote, proportionately in greater numbers, than those who simply believe government did the right thing on a certain issue. In municipal elections, this is a very big deal. In the 2006 municipal elections, voter turnout in Windsor was around 38%, very low to be sure.

Large groups of voters who have been on strike, and are very angry, plus low voter turnout, equals disproportionate strength at the voting stations. This is the fault of those who don't vote of course. But that does not change the arithmetic.

I am not taking sides in this strike. I have said so several times before. I have also said, CUPE has chosen the wrong time for such a strike. I don't know who has behaved worse, CUPE leaders from out of town, or the Windsor Star. However, as promised, I am watching the politics very closely.

Don't kid yourself, there are other council members doing arithmetic, over and above the 3, that have fallen off the wagon. Just a thought, the split on city council could get bigger. And then...............