Apr 11, 2013
At its meeting of Council yesterday, Mississauga passed a resolution asking the three
provincial parties to work together and advance the private member's bill: Public Sector
Capacity to Pay Act that supports change for arbitration in the public sector.
"Arbitration is a serious concern," said Mayor Hazel McCallion. "Municipalities
already have budget challenges. Labour costs are the largest budget expense for most
municipalities; higher employee costs add significant budget pressure. Arbitrators should no
longer be in a position to assume that a municipality can or should raise taxes to pay for any
compensation increase they award."
The private member's bill, Public Sector Capacity to Pay Act, proposes tools for arbitrators to
use when measuring the fiscal health of a community and an expectation that they must
demonstrate in writing how they came to their decisions.
"These changes would ensure that the arbitration process is more transparent around how a
municipality's fiscal health has been taken into account," said Janice Baker, city manager
and CAO. "It would also allow municipalities to receive arbitration decisions in a more
timely manner so that staff can properly budget for related financial impacts."
The bill was first read at the Ontario Legislature on March 28, 2013.
For more information visit:
Public Sector Capacity to Pay Act
Interest arbitration affects Ontario municipalities which have essential service employees
including police, firefighters, some paramedics, long-term care workers, among others. Based on
provincial legislation these employees are not allowed to strike. Interest arbitration is the
only legal process for resolving collective bargaining disputes with these employee groups when
traditional collective bargaining can't be reached.
Concerns with the current interest arbitration process including the length of the arbitration
process and the fact that arbitrators often replicate agreements from one community to the next
community failing to consider the local municipality's situation or a community's
As Canada's sixth largest city, Mississauga is home to 741,000 residents and more than 54,000
businesses, including more than 60 Fortune 500 companies with Canadian head offices or major
divisional head offices. A diverse, progressive and award-winning municipality located on the
shores of Lake Ontario in the heart of the Greater Toronto Area, Mississauga is "Leading
Today for Tomorrow" by focusing on delivering services, implementing its Strategic Plan,
delivering value for money and maintaining infrastructure.
Senior Communications Advisor, Transportation & Works
Phone: 905-615-3200 x5046