Local 79 President Tim Maguire expressed frustration today at the Public Works & Infrastructure Committee over the proposal to further contract out waste collection in Toronto.
Tim cited both a 2015 Ernst & Young and City staff report that showed Toronto will not save money by pursuing further contracting out of solid waste collection; residents will be exposed to service declines; the City will have greater difficulty meeting environmental targets; and City Council will be working against its own poverty reduction strategy by turning good jobs into precarious, low-paying work.
Over the last few years, CUPE Local 416 has worked closely with the Division to lower costs and find efficiencies. As a result, the cost per home in Etobicoke (with private collection) is $142.86. In Scarborough (where Local 416 collects) it is only $126.89.
The proposal is also troubling because it suggests that the City explore contracting out collection in Scarborough under a “managed competition” or “competitive bidding” process, where the union would be forced to work with City management and consultants to develop a bid to compete against private companies.
Managed competition is a slap in the face to Local 416’s cooperative efforts. It also creates extraordinary downward pressure on wages and benefits as private companies low-ball their bids, counting on lower wages to make up the difference.
Competitive bidding or managed competition has been used in the United States to outsource services and drastically reduce wages and benefits. Our fear is that Mayor Tory will consider “managed competition/competitive bidding” for services our members deliver next.
Watch his deputation below.