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Bring on Dalton Days
By Hamilton Community News Editorial
Editorial
Nov 20, 2009
During the recession in the early 1990s, NDP premier Bob Rae introduced what became infamously known as ‘Rae Days.’ Officially titled the Social Contract, the 1993 initiative imposed austerity measures on the civil service. The plan forced a wage freeze and mandatory unpaid days of leave. In the midst of a brutal economic recession, Rae asked the public sector to share in the task of helping Ontarians battle against a ballooning deficit.

Public service unions fought this measure, but in the end, the actions likely prevented potential layoffs.

Premier Dalton McGuinty was right when he recently asserted that public service workers have been "sheltered" from the recession. Private sector workers have endured massive job losses, wage freezes and cutbacks.

That would explain why the premier recently floated a trial balloon suggesting the possibility the public sector may be asked to share some of the load in helping the province rise from the ashes of the worst recession since the Depression.

Dubbed ‘Dalton Days,’ there is a real possibility the public service will have to chew on a hunk of economic hardship when the government brings forth its spring budget.

It’s been a good ride for public sector employees under the McGuinty government.

Since coming to power in 2003, the public service has seen rapid growth under the Liberal government. In the past six years, the public service has expanded by 16 per cent.

It’s important to note that four out of every five dollars spent by the province go toward public employees’ salaries.

While Ontario's economy was shedding tens of thousands of jobs last year, the number of public sector workers who were paid more than $100,000 jumped by 26 per cent more than 2007.

Public-sector salaries in Ontario have risen by 42 per cent since 2002, while GDP has only grown by 32 per cent, according to Statistics Canada data and 53,500 people in the public sector now make more than $100,000 a year.

When the province tables a budget in spring 2010, there is a real chance Finance Minister Dwight Duncan will announce a five per cent cut in every area of spending except health care and education.

Considering that, it may be difficult, if not impossible, to avoid Dalton Days or, worse, permanent job cuts.

The very suggestion of Dalton Days led many public service union leaders to lash out at the idea. There were no alternate ideas presented or offers to work with the government to find solutions. Just selfish rhetoric and threats.

In an effort to stave off the recession, the government has asked Ontarians to take on massive debt, while also imposing tax increase measures such as the HST (Harmonized Sales Tax), which will take effect next July.

But nothing has been done to control government spending, especially when it comes to the public service.

“Dalton McGuinty can float all of the trial balloons he wants,” said Ontario PC party leader Tim Hudak. “We don’t believe a word of it. Throughout six years as premier, not once has he shown even the slightest inclination to control spending with agreements that reflect taxpayers' ability to pay for them.”

“Instead each time he faces a pinch he raises taxes. First it was the health tax, then it was business taxes and now it is the HST. Dalton McGuinty is hardwired to higher taxes and higher spending.”

Were not suggesting the province follow the cost-cutting philosophy of former premier Mike Harris, who believed tax and spending cuts were the only answer to tackling provincial debt and lowering budget deficits. History proved that strategy created problems that had to be fixed down the road.

Bob Rae showed courage in bringing forth the Social Contract. Now, it’s time for Dalton Days.

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