The original intent of this blog entry was to discuss John Spears’ story in The Toronto Star last week on the cost of benefits at the City of Toronto, essentially comparing the city’s soaring benefits costs with the same soaring costs at the Toronto Police Service.
This is not a “Toronto issue”. In fact, this issue is affecting public and private sector employers throughout North America. We are all struggling to provide existing benefits to our workers in a cost-effective manner.
My original intent changed earlier this week when I read Toronto Police Association Dave Wilson’s quote in The Toronto Sun about how the Board has had eight bargaining meetings with the TPA without any progress being made. It depends on how you define “progress.” But, coincidentally, that too relates, to benefits.
The members of the Toronto Police Service have a very difficult job and it is important that we provide the benefits that can help them, such as an Employee and Family Assistance Program, short- and long-term disability and other benefits such as dental, eye care and prescription drug coverage.
As with every other employer, our cost of providing the benefits that we have already negotiated is increasing dramatically. In the last four years, we have seen an average annual increase of 9% in the cost of medical benefits and an average annual increase of 4% in dental benefits. This is without negotiating increases or add-ons to an already very comprehensive and very generous benefit package. Many Toronto residents do not have as good a package – indeed, some have no benefits at all.
The math is simple: any significant increase to the Toronto Police Service benefit package will cost a substantial amount of money in addition to the soaring costs of the benefits we already give to our members. Perhaps “progress” is more about recognizing and valuing what you have rather than about getting still more, with no regard for an already beleaguered property tax payer who ultimately pays for it.
