Toronto’s new union contracts could hit taxpayers hard, with costs reaching $300 million in 2025, raising concerns about budget impacts.
The TTC’s recent contract, which avoided a transit strike, will cost $176 million over three years. But that’s just the tip of the iceberg. There are more agreements in the pipeline, covering thousands of city workers, paramedics, police, and firefighters.
Stephen Conforti, the city’s CFO, mentioned that the budget has set aside $300 million for these rising costs. Mayor Olivia Chow has pointed out that keeping workers is crucial for city services. However, some council members are not too happy about this.
Coun. Jon Burnside called it a “self-inflicted budget.” He believes the TTC contract sets a precedent for other unions, which could lead to a tough budget season ahead.
As the city works on its budget, the proposed tax hike could bring in around $320 million. This is part of a plan to tackle a $1.2 billion budget gap. Chow has been clear that labour costs are a big factor in the tax increase.
She emphasized the need to support public servants, especially with the rising cost of living. Many workers are saying they need fair wages to live in the city.
In December, the city reached a deal with CUPE Local 416, representing about 4,200 civic employees. However, the exact cost of this deal is still under wraps. Negotiations are ongoing with paramedics and other city employees.
The Toronto Police Association is also in talks for a new contract, while firefighters are still without one.
Coun. Stephen Holyday has been vocal about his concerns, stating that these agreements are quite generous and could burden taxpayers.
Experts suggest that public sector workers are just trying to keep up with inflation. Carlo Fenelli from York University believes that these budget numbers are essential for maintaining good jobs and living standards.
The city is also looking to hire more workers, including 75 traffic agents to help with congestion, which will cost an additional $3 million.
