Could There Be Labour Trouble Ahead With Ontario’s Budget Woes?

Remember the days of the Harris government when the Tories always seemed to be at war with the teachers and other unions? The McGuinty Liberals vowed to restore peace and things have been relatively stable ever since.

But it may not stay that way.

When the government announced on Wednesday that it was going to run a $500 million deficit and delay some of its promised programs in the wake of hard economic times, it also warned public sector unions they’d have to play ball and not expect any big raises in coming contract negotiations.  

But the province just finished a deal with the doctors that will give them a 12 per cent raise. And that may not sit well with everyone else, opening up the possibility of new labour problems.

Finance Minister Dwight Duncan knows there are those who won’t be happy but believes everyone will be reasonable, given the current state of the world economy.

“What we’re saying is we’ll continue to bargain collectively,” he vows. “We laid out a budget in March, which we’re largely staying on. We’re still negotiating with the elementary teachers. We’ll continue to negotiate.”

Does he expect any strike action as a result of the moves? “I expect to continue to bargain collectively … in good faith,” is all he’ll say, choosing his words carefully.

What do the unions say about that pronouncement? OPSEU claims it will take the new restrictions into account and bargain in good faith. 

But CUPE accuses the Liberals of “going in the wrong direction.”

“This is no time for the government to pull back,” warns union president Sid Ryan in a statement. “It is wrong for McGuinty to stall spending as this will move the province closer to a ‘rust-bucket’ economy.” He claims investment in public service programs would have generated more profit and stimulated the economy in a way restraint can’t.

Nurses are also furious with the announcement that some 9,000 new hires have been put on hold. “We’re clearly disappointed with this decision,” admits Nurses’ Association of Ontario president Wendy Fucile. “Nurses are already grappling with a serious shortage of health professionals and we were counting on the province to deliver on its promise to hire 9,000 nurses right away not later.”

So far, no one’s talking job action. But as the negotiations begin and progress, there are fears those already struggling in tough times may feel compromise is just one more thing they can’t really afford.

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