REVISED MINUTES

COMMUNITY SERVICES COMMITTEE

REGIONAL MUNICIPALITY OF OTTAWA-CARLETON

CHAMPLAIN ROOM

15 OCTOBER 1998

1:30 P.M.

Chair: A. Munter

Members: D. Beamish, W. Byrne, L. Davis, C. Doucet, D. Holmes, H. Kreling, A. Loney, M. McGoldrick-Larsen

CONFIRMATION OF MINUTES

That the Community Services Committee confirm the Minutes of the meeting of 01 October 1998.

- Commissioner, Social Services Department report dated 23 Sep 98

The Director, Child Care Division, Ms. Gayle Preston, indicated the report provides information on additional provincial funding for pay equity and on the potential cost sharing of any further per diem rate increases. With respect to pay equity grants to agencies, the Province sent a survey to all eligible agencies and is processing the responses at this time.

It is anticipated that payments will be made at the end of 1998 or at the beginning of 1999 and some agencies may receive as much as 6% of their 1993 payroll as a one-time retroactive grant. Ms. Preston said the major issue is that the Province has dealt with retroactivity to 1998 but has made no commitment to further funding. She anticipated the issue would surface in 1999 when the department deals with the future of wage subsidy/pay equity in general.

Speaking to the potential for cost-sharing on any increases, staff have been informed the Area Office expects to have a limited amount of fiscal funding that would flow to the department. With these funds, and based on expenditures to end of September, staff anticipate the $225,000 related to the recommendations in the report can be absorbed without additional funding. Ms. Preston added that 100% regional funds will be required in future years to maintain those increases.

Ms. Preston ended her presentation by saying the report includes preliminary salary data relating to teachers and supervisors, and this represents the majority of staff in child care agencies. Staff are continuing with the salary review, and will be looking at issue related to benefits and leaves packages over the next year.

The following presentations were made to the Committee:

Shelley Bird and Laurie Bonsall, C.U.P.E. 2204, expressed their frustration about the fact the cost-of-living issue is being muddled with the pay equity issue. The vast majority of workers currently in the field will not attain pay equity within their working lives. While the majority of workers have not had a cost-of-living increase since 1992, the actual cost has increased by 10.2% in Ottawa-Carleton: this means workers are losing ground in being able to maintain a decent standard of living and in terms of wage parity with regional workers. Concern was expressed about the Region reversing it’s long-standing commitment to wage parity and abandoning it’s commitment to quality child care. It was pointed out that an ever-growing body of research clearly spells out the social relevance of early childhood care and education to young children and the benefits to the community. Ms. Bond posited the Region should be working towards quality child care as opposed to dividing the child care community over a 2.21% wage increase.

Shelley Bond, Chair, Child Care Council asked that the 2.21% increase for home care providers be looked at separately. The providers are self-employed and are necessary for the success of licensed home child care, and they have not received a pay increase or any type of increase since 1992.

Ms. Tremblay said the Regroupement does not support Recommendation 1. She wanted to clarify that non-profit centres are asking for an increase of 2.21% and it was never an issue, up to now, to ask for a pay equity increase: these are two very distinctive matters. Nowhere have I seen that employees in municipal centres were not eligible for pay equity so they could have salary increases and vice-versa. If the RMOC gives a raise to its employees in municipal centres, if it gives an increase to private centres, it must give an increase to non-profit centres as well. In very few francophone centres are the salaried anywhere near those described in the salary tables contained in the report and many would need several years of salary increases to meet the salaries in municipal centres. She asked that the Committee not approve Recommendation 1, unless the 2.21% increase is given to all centres.

Joséphine Soudier, of La Maisonée, said that all child care workers have been awaiting salary increases for many years, given the increases in items need to care for children, i.e., food, toys, crafts materials, etc. The work is very important, very tiring and very stressful, and demands much energy, patience and responsibility towards children. Providers have no security of employment, no paid holidays, no sick leave. During the last four years as a Board Member of La Maisonée, she has observed it is getting more and more difficult to recruit workers, because private centres have increased their rates. She asked that the Committee help workers maintain quality service by approving the increase recommended for home child care workers.

Ms. Gregory spoke on behalf of the Home Child Care Network which represents the licensed sector, urging the Committee to approve the recommendation for an increase. Workers presently receive $19.25 per day for full-day care for up to 10 hours of care. Through provincial enhancement grants, the rate is increased to $23 dollars. These are the lowest rates in the child care sector (the going rate for providers working privately is commonly $30 per day). The proposed increase would add .40 cents a day to the rate. The fact that providers have not received an increase since 1992 is widening the disparity between those who contract privately and those who work through agencies. As a result, agencies are experiencing tremendous difficulties attracting providers. The proposed increase will do little to bridge the gap but it is a step in the right direction: even if it were doubled, it would still not bridge the gap.

Caroline Landry, a home day care provider working for Andrew Fleck Child Care Services, wanted to stress the importance of the increase to persons who work on average 10 to 12 hours per day within their homes. Their annual average income is approximately $12,000 for professionals who get ongoing training and provide top quality child care. Ms. Landry said a lot of providers are considering going private; they love children and the work they do, but they have to be concerned about their income.

Cindy Magloughlin, said that to suggest that the obligations of private operators be addressed through regional funding but that the obligations of the not-for-profit sector not be is discriminatory and completely unacceptable. Staff can provide statistics to show how well the private sector is doing, but those same statistics can be interpreted to show only a few teachers are actually earning what their colleagues at the Region are earning.

On the matter of Pay Equity, there are indications the Province is starting to deal with the wage subsidy gap between commercial and non-profit operators by providing additional funding to the commercial sector. In Thunder Bay, the Area Office of MCSS was directed to use any surplus to level the playing field, and they did this by providing an additional wage subsidy to the existing commercial operator and the same amount to a new operator. Ms. Magloughlin said she did not believe the Region should be addressing that particular gap with 100% regional dollars, rather it should address the entire gap.

With respect to answering the question "where will the money come from?", there are choices made within the regional budgetary process. Perhaps the cost of living increase can come from the same source the $500,000 to buy Lansdowne Park came from. Agencies put a lot of effort fighting for the cost of living adjustment, even though it is a small amount of money on an individual basis. Agencies feel they have been marching backwards in the last four years, just as fast as they marched forward in the previous decade. Agencies feel they are under attack from the Province and that the spirit of cooperation, support and mutual respect previously enjoyed with the RMOC is being eroded. There was no consultation on this very strongly-felt issue and therefore no opportunity to reach a mutually-acceptable solution as was done in the past. Funding concerns are not going to go away, the community is not going to go away, and 1999 may be worse, depending on the outcome of the next provincial election.

Replying to questions from Councillor A. Loney, Ms. Preston indicated the Province is providing more money for pay equity: this is 100% provincial funding that goes to the agencies. The 2.1% for non-profit agencies that get pay equity funding would be in addition to that, and there is no cost sharing: home child care providers, because they are considered to be self-employed, are not eligible.

Councillor Loney asked how home child care providers could receive matching funds. Ms. Preston replied this would require more funding than is being recommended in the report, as home child care workers are in a different environment, and it is difficult to equate their compensation packages. It is known they receive far below what they would get in the private market.

Councillor Loney said he could support the notion of a cost of living adjustment across the board, but pay equity is a separate matter and the responsibility of the Province. He asked whether staff shouldn’t be taking further steps to address the needs of the most underpaid home child care workers beyond the recommended 2.21%. The Social Services Commissioner, D. Stewart, related that, were it up to him, staff would deal with the significant difference between the marketplace and the rates paid to home child care providers. The department has another imperative, and that is to live within the 80/20 cost-shared world. Staff are not in the position to recommend increases for all and have been clearly told by the Province that expenditures beyond $250,000 have no hope of being cost-shared.

Mr. Stewart spoke about the inequities experienced in the commercial sector in Ontario since 1992. Staff have not benefited from wage subsidies and other opportunities for salary increases that their counterparts in not-for-profit centres have had: the report attempts to address this fundamental inequity. If home child care providers receive an additional increase, this money would have to be found within the child care budget by either reducing service or finding other efficiencies.

Councillor Loney asked for clarifications on gross and net amounts. Commissioner Stewart said staff have assurances from the Area Office that $225,000 will be cost-shared in 1998, however this amount won’t be included in the base budget. There is a risk this amount won’t be covered in 1999, although staff can argue that the Province continue to share once they have done so. He pointed out that the Region currently has approximately $1 million in the child care budget that is beyond the subsidy cap, as a result of progressive and proper Council decisions taken over the years to increase per diem rates for uncontrollable costs and for salary adjustments that the Province does not recognize in the base.

In response to further questions from Councillor Loney, Commissioner Stewart directed the Committee to the Finance Department comment in the report. Therein, $225,000 is for salary adjustments recommended by the department and $86,000 is for per diem increases for uncontrollable costs. The balance, up to $700,000, would be required to top-up the non-profit sector to 2.21%. The entire $700,000 is potentially in jeopardy for any provincial subsidy in 1999.

Mr. Stewart expressed the belief that fiscal cost sharing for $225,000 will continue in 1999 once subsidized, but it is unlikely the department would get fiscal subsidy for the remaining $455,000 in 1999.

Councillor M. McGoldrick-Larsen asked whether staff will be coming forward with the findings of the review on remuneration and benefits. Ms. Preston indicated no final decision has been made on what the report will contain. Staff know there are discrepancies and want to look these differences, come up with guidelines for agencies, particularly new agencies, to see how equity might be reached. Ms. Preston added this will be difficult given no additional funds are envisioned. She added that the last time a complete salary and benefits review was undertaken, the findings revealed some agencies had better leave packages than regional staff, but conversely had lower salaries, which tended to even things out.

Councillor D. Holmes put forward an additional recommendation, calling for the 2.21% increase to be given to agencies that are eligible for provincial pay equity grants. She said it was ironic that the senior levels of government, who wrote the legislation, didn’t perform for their employees whereas the RMOC has done so for its employees. The Councillor said she was fairly pessimistic about the ability of the provincial government to live up to its commitments legal obligations. In the meantime, everybody should be treated in the same manner when it comes to cost of living increases. The child care industry is one of the lowest paid in the industrial world. The RMOC has led the way continuously for the past twenty years, and has forced the Province to cost-share on many fronts, including child care. She expressed the hope the Province could be forced, once again, through political embarrassment, to come up with the necessary funds.

Councillor D. Beamish asked whether the $700,000 shouldn’t be used to bring parity to some of the lowest paid workers. Commissioner Stewart indicated the report tries to focus on home child care providers and staff in commercial sector and target scarce resources to them. If the direction is to provide 2.21% to the entire child care community, staff would go back to agency budgets to ascertain which have the lowest wages and disburse funds according to this determination. Mr. Stewart clarified the Region is not the employer, but a purchaser of service and it would increase its rates to pay for the service.

Councillor W. Byrne spoke in support of Councillor Holmes’ Motion. She said she agreed that pay equity and cost of living increases should not be lumped together as it does them both a disservice and undermines their purpose. She urged Committee members to support the Motion.

Councillor C. Doucet said that the Province has been forcing municipalities into a "parish poverty" over a number of issues. Councillors are constantly put in the difficult position of having to choose between lowering service or finding the money to maintain current levels. The Councillor said he is persuaded the RMOC shouldn’t be forced to do this, it should just say no, to school closures and to forcing people to accept wages that are unacceptable, as a matter of justice.

Councillor Loney said he found it difficult to know the Region is already over $1 million in non-cost shared programs, as he has voted in the past for some of the measures that contributed to this state of affairs. Approving Councillor Holmes’ Motion would add 40% to that amount, bringing the total to $1.4 million. The Councillor felt there has to be a limit to what can be contributed in local dollars. He spoke about the Budget Sub-Committee having recently been informed by staff there is at least a $50 million shortfall going into the 1999 budget. To be able to support the recommendation, he would need the Province’s assurance they will cost share. He pointed out that the Province has shirked it’s responsibility to provide their 80%, and there are no indications they will do so in the immediate future. They must be reminded of their responsibilities in this respect.

Councillor L. Davis said she was sad to see it was still being discussed whether or not child care workers deserve to be paid fairly and equitably. Whereas pay equity has been provided to regional employees, it can’t seem to get around to being provided to a female-dominated group that is poorly paid to begin with. She asked that the Committee support Councillor Holmes’ Motion.

Councillor McGoldrick-Larsen said she found it difficult to take the position of not supporting the Motion, as she appreciates and values the role of child care workers in the community. She pointed out the RMOC has other pressures, including land ambulance services, the cost of which is unknown, and social housing, the cost of which is equally unknown. The Councillor informed those present she was very concerned about the bottom line from all the downloading and from the financial pressures the Region is under and she did not feel this was the time to expand another area by 40%.

Councillor H. Kreling said staff have provided the best recommendations they could, given Council’s directives. He indicated Councillor Holmes’ Motion poses a challenge, to find the additional funds somewhere, and to not support it would continue to compound the inequity. It should be supported and the bill sent to the Province, to badger and embarrass them into providing the cost-sharing required.

The Committee Chair, A. Munter, pointed out that, in real numbers to the child care community, someone making $27,000 per year will receive an $11 dollar a week increase before taxes: spread out over six years, the period during which no increases have been received, this translates into approximately a dollar a week. He noted that municipalities are constantly put in the position of having to hold the bag for the Province, but in this instance, when dealing with some of the most lowly-paid workers in the community, it is time to bite the bullet.

The Committee then considered the following Motion:

Moved by D. Holmes

CARRIED

Councillor Loney asked that the Social Services Commissioner provide, prior to the Council meeting, information on how he proposes to fund the additional $455,000. Councillor Holmes clarified, in response to Commissioner Stewart, the intent is not that this result in no additional increase in the child care levy. Councillor Beamish asked that information be provided on how staff will deal with the retroactive payments in 1998, given that the 1998 rate has already been set. Councillor Doucet asked for a "one-pager" describing the impact of downloading, to date.

2. REINVESTING IN CHILDREN AND FAMILIES- AN OVERALL PLAN

- Commissioner, Social Services Department report dated 21 Sep 98

3. IMPLICATIONS OF THE MULTILATERAL AGREEMENT ON INVESTMENTS

1. Proposed Satellite Sexual Health Centre in Youth Services Bureau Downtown Drop-In

- Medical Officer of Health report dated 22 Sep 98

IN-CAMERA

Moved by A. Loney

CARRIED