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If Rob Ford Wants to Find the Gravy, He Should Follow Scott Walker's Recipe

Posted: 06/07/2012 1:45 pm

Before Wisconsin Governor Scott Walker's startling win against the union-inspired attempt to have him "recalled" and replaced by Milwaukee Mayor Tom Garrett, New York Times columnist David Brooks wrote: "It will be a vote against any special interest that seeks to preserve exorbitant middle-class benefits at the expense of the public good."

And that's exactly what happened when, to the surprise of the liberal left, Wisconsin voters supported Walker's view that unions should concentrate on wages and contracts, and not get involved in politics or extra benefits.

What happened in Wisconsin will now likely spread to other states where union arrogance and power threaten America's bid to reduce spending and control debt. It also has a certain application to Toronto when it comes to bonuses for city managers.

Unlike Wisconsin, where Walker inherited a $30 billion debt in 2010 and has since reduced it to a $150 surplus, Toronto has a $4.5 billion debt that Mayor Rob Ford is trying to harness.

By taking a page from Gov. Walker's book, Toronto could consider cutting, trimming or reducing the exorbitant pay that city managers get, as well as ending the practice of bonuses to these guys, even when they flummox or fail at their jobs.

More than anyone in the media, the Sun's Sue-Ann Levy has been relentless in exposing waste and mismanagement at city hall. Recently, she has targeted salaries and bonuses (not to mention other self-awarded benefits) that frustrate citizens who feel helpless when those we elect pander to those who loot the till.

Citizen unrest is one reason Rob Ford was elected mayor, despite the opposition of all those who benefit from taxpayers' money that's been diverted to them.

Levy reports that city hall's proposed "merit pay" is aimed at 3,807 city managers who already are paid more than most of them could earn in the private sector.

Apparently, it's proposed that all managers get a three per cent bonus to make up for bonuses being cancelled in 2010 and 2011. Starting next year, those "who meet expectations" get a 2.5 per cent bonus, and those who exceed expectations get five per cent. Does that mean those who under-performed get fired? Not bloody likely.

As Sue-Ann point outs, the salary these "managers" get are roughly 11 per cent higher than those doing similar jobs in the private sector.

Whatever happened to the view that getting a salary implies doing your job?

Some salaries range from $115,000 to $155,000 to $210,000; $330,000 for City Manager Joe Pennachetti.

Are any of these guys likely to quit if they don't get a bonus? Do pigs fly?

How can a bonus be justified for a manager whose project exceeds his budget by over $4 million and is 18 months behind schedule? Or for a manager whose budget for a project is 100 per cent higher than planned. And so it goes.

According to Levy, 90 per cent of managers get bonuses. The result: "Mediocrity is the rule rather than the exception."

Surely a salary should be sufficient to ensure that a person hired will do the job required. Increases in the cost of living are one thing -- bonuses are a witches' brew.

CEOs in Canada and U.S. get millions when they fail to deliver, or are fired. Governments are notorious for lavish pay-outs when it's only taxpayers' money.

Apart from the money saved simply by ending the bonus system, it would send a message of frugality to public "servants." Levy has it right: "Only at City Hall would bonuses be handed to anyone who turns up for work."

 
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georgee2
My Canada Includes Everyone
05:47 PM on 06/08/2012
It is completely amazing to me how someone like Peter can blame the workers for all the debt and deficits. However when someone like Peter is paid a huge salary it is for the good of us all. What poppy cock. Even his numbers for Wisconsin and Toronto are wrong. Walker simply wanted to reduce taxes to the corporations and caused a phony problem. Than introduced right to work for less laws to undermine the unions. He did this with huge amounts of cash from rich individuals and companies. The system will never work until we get big money out of the picture.
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Skepticat
Supporting skeptical felines everywhere
05:21 PM on 06/08/2012
Eventually one gets tired of being neo-CONNED. Walker ran on fiscal responsibility - easy to do because he inherited an already balanced budget with a large surplus - then created the "crisis" by giving huge corporate tax cuts against recommendation of the state's own financial advisors, then not only attacked negotiated in good faith collective agreements, but when unions did agree to the concessions used said "crisis" to prevent any future collective bargaining. All of this can easily be verified by anyone curious enough read more than the Toronto Sun.
03:05 PM on 06/08/2012
That eleven percent got to me!

Execs of large corporations would toss a chair through the window and jump out of their forty-fifth floor corner office if they got a paltry eleven percent.

They are more accustomed to getting eleven times what they were getting a decade or so ago.
02:11 PM on 06/08/2012
We need to scrap the whole Toronto city gov't and start from scratch. The unions are intransigent, while the management is incompetent. And everyone is overpaid while nothing is accomplished.
09:27 AM on 06/08/2012
Basically everything in this article is a lie.

1. Governor walker inherited a balanced budget, not a deficit.
2. He created the "budget crisis" with tax cuts.
3. Unions WERE willing to cut their own wages and benefits; what Walker did was to undermine their bargaining power for the future.
4. "and so it goes"? You did NOT just reference Kurt Vonnegut while writing this contemptible tripe.
5. You realize city managers aren't unionized, right?
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greenmonk
The Only Thing We Have to Fear Is Fear Itself
05:13 PM on 06/08/2012
Yeah well thats how the Cons do it. They have no actual facts or proof behind them so they make things up and then argue against the Straw Man they have created. And all the ignorant Sun readers, Peters' fans, come to HP emboldened by their "win" and strut themselves.
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NTodd
Aude Sapere
05:06 AM on 06/08/2012
Among the more odious phrases in this article: "Citizen unrest is one reason Rob Ford was elected mayor, despite the opposition of all those who benefit from taxpayers' money that's been diverted to them." It isn't being "diverted from them". It's a fee for service. When I hire a carpenter, he isn't "diverting" my money into his pocket. And when HuffPo charges advertisers, it isn't "diverting" money into Danielle's pocket, either.
01:35 AM on 06/08/2012
Yes and they are Public Service managers who we all know are lazy and mentally challenged and only got into the public Service because they couldn't get a real job in the market place. We really shouldn't have to pay them at all and of course even though they have no capability of controlling the spiralling costs of Municipal Services should be held accountable and fired, did I mentioned beaten first. They just don't know how good they have it really what should happens is that we just apoint a good stalwarts Market executive to go in there and show them what to do because we all know the Private Sector will just make everything better save tons of cash and enhance the living conditions for Canadians everywhere. None of this would even be necessary of course if the Public Sector didn't force those Banks to make those bad financial deals and gamble with their pension moneys, colapse the market and bankrupt the world. Long and short Public Sector Bad, Over paid lazy , Mentally challenged Private sector wonder full and flowers grow out of their Butt right beside where the sun usually shines. Well if the Private Sector supporters are correct business should be booming lowest taxes anywhere a Business friendly government, just wordering other than the oilsands how that going for us and the old Harpo plan?
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foogie
The Credible Hulk
11:05 PM on 06/07/2012
"Unlike Wisconsin, where Walker inherited a $30 billion debt in 2010 and has since reduced it to a $150 surplus, Toronto has a $4.5 billion debt that Mayor Rob Ford is trying to harness."

You might want to actually check and source some of your numbers before you just say things that aren't true. If you actually read Wisconsin's most recent budget (signed by Walker and Doyle), you see that "despite the worst economic crisis since the Great Depression, under the leadership of Governor Jim Doyle, Wisconsin was able to keep its budget balanced" and that the projected budget deficit for Wisconsin by June 30, 2013 is "$1.5 billion" and that is based on some pretty rosy economic predictions! http://www.doa.state.wi.us/docview.asp?docid=8371&locid=166

As for the $4.5 billion debt for Toronto: also a fabrication. Toronto is expected to have a $4.2 billion debt by 2015 (up from $2.2 billion in 2010). I would love to blame that on Ford's leadership, however, that wouldn't really be fair. The main reason for that debt increase are the PanAm Games and the TTC expansion which weren't his ideas. However, Ford has recently become very supportive of the PanAM Games and certainly didn't have a cheaper TTC plan in mind so he can't really claim to be too worried about enormous expenditures that will cause ballooning debt. http://www.toronto.ca/finance/pdf/factsheetdebt2011.pdf
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NTodd
Aude Sapere
04:54 AM on 06/08/2012
I guess when your daughter's the editor, your journalistic obligation to cite true facts evaporates. Of course this latest fantastic polemic of Worthington's belongs in the category of "smear the workers", especially if they belong to a union. The (small) difference in pay between public and private workers is this: pay equity. In the public sector, paying a woman less because she's a woman isn't tolerated. Therefore, the average salary for all workers is a bit higher in the public sector. Those who pine for private-sector standards for public workers are really asking for carte blanche to discriminate against women. One more thought: lay off a whole bunch of managers, fine, but who winds up having to do THEIR work? You guessed it. Remember what always rolls downhill?
07:08 PM on 06/07/2012
Of course CEOs should be paid gigantic amounts even though they run their companies into the ground. By the way, Wisconsin's performance under Walker has been pathetic.
06:50 PM on 06/07/2012
As someone who has held both Union Executive positions and positions on the other side within HR I can honestly say, that it is not necessary the unions that are the problem. Time and time again the buck can stop at an ineffective manager or management team that has neither the will nor the understanding of performance management (or non monetary incentives to keep the labour force happy) to keep these groups in line.

And pay for performance (bonus) has no place in the public sector - your pay for performance is your salary.