Friday, April 08, 2005

Day of decision in TTC talks

Today is the TTC main union's stated deadline for an 'acceptable' offer. It's impossible to know what will happen. I'm guessing we'll have a strike. The TTC and City have rendered themselves defenseless against the unions by swearing off contracting out. A strike of up to a week is likely, as the union has little to lose. My projection is that the eventual settlement will push up the TTC's cost by a rate of 1.5% a year greater than inflation over the next five years.

As shown by this graph, this has been the pattern over the last four or five years.

With pension top-ups, other benefits and an annual increase of about 2.5%, TTC real costs (i.e. adjusted for inflation) will grow about 8-10% over five years. This will consume most of the gas tax money so graciously provded by the province. Voters in Peel and York can watch millions of their tax dollars fatten TTC employees wallets - while doing nothing to improve transit

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