(2011-2012 HR#49) Provincial Budget and Compensation Update

Date: March 30, 2012
To: Professional & Managerial Staff, Confidential Staff, Research Associates and Senior Research Associates
From: Angela Hildyard, Vice-President, Human Resources & Equity
Re: Provincial Budget and Compensation Update

As you know, we have received governance approvals for a compensation increase effective April 1st for members of this valued group at the University of Toronto.

In my memo of March 14, 2012, I noted that we would be assessing the Provincial Budget to determine if the previous compensation restrictions, as set out in the Public Sector Compensation Restraint Act, were to be continued since that would make it illegal for the University to proceed with the planned increase. The Act will expire as of March 31st.

The budget does, however, include many new restraint measures.

The budget document makes clear statements with respect to the Ontario Government’s own unions and associations. The budget also unequivocally freezes compensation for certain senior university administrators. There is less clarity with respect to other groups within the broad public sector. Our sense (and strong hope) is that the increase can proceed.

However, as a matter of prudence, the University will seek further clarity regarding the intended scope of the restraint measures before proceeding in what is going to be an economically and politically-tense environment.

With the budget debate still unfolding, we anticipate it will be 2-3 weeks before we receive confirmation of our interpretation. As soon as that happens, we shall be in touch. If the increase can proceed, as we hope and believe will be the case, it will, of course, be retroactive to April 1st.

I thank you for your patience and want to assure you of our continuing resolve to address the unintended and unfair side-effects of the previous compensation-related legislation and regulation.