Something stinks and it’s not the piles of garbage in the streets of Windsor.Why did this strike occur? I asked that question of Ken Lewenza Jr at his town hall meeting earlier in the strike. It seems like eons ago now. Lewenza didn’t have a good answer for me. Frankly, I forget now what he said. Must have been very unenlightening to say the least.
What have we been told about the impetus for this strike by city officials? Alan Halberstadt, councilor for Ward 3, would have us believe this from his blog…
“I sit on the city’s retirement benefit committee that has been dealing with ways to mitigate against this unfunded corporate liability that will climb from its current $290 million to unfathomable heights if not addressed in these negotiations. We have been told by our bond raters, auditors and the caretakers of our long-term financial stability strategic plan that this is not sustainable.”
Therefore, post retirement benefits (PRB’s as they have come to be known) are the main issue. However, is Alan the only one with this view? No. The mayor has said, “On the issue of capping retirement benefits for new employees, Francis said, “city council is adamant – this is an issue we need.” The mayor said city negotiators have moved on other issues in order to focus on the cap on future liabilities, which he emphasizes would have zero impact on current employees.
So, for the consideration of the city’s bond rating, Eddie Francis’ argument, and parroted by Alan Halberstadt, was Post Retirement Benefits needed to be eliminated; otherwise, Windsor’s rating would be downgraded by Standard & Poor.
But…there’s always a but. An insider with S&P slid an envelope to me with the following information. “The current issuer rating on the City of Windsor is AA with a Stable outlook.” What’s that? A stable outlook? Even with the strike still not settled (at the time of writing this). It appears that the bond rating would not be downgraded after-all. It is on stable ground. That the rating isn’t going down is certainly good news. However, it’s not going up either, and that speaks volumes about this administration’s fiscal record of accomplishment with Standard & Poor.
But…again there’s a but…there’s more. “In answer to your questions about the city's PRBs: contingent liabilities, such as this, are one of many factors that are part of our analysis, other factors that we look at include the economy, operating performance, and debt and liquidity levels (both present and future) to name a few. Since we already factor the PRBs as part of our analysis of a number of different factors, we would not expect the rating to change based on just that aspect.”
The City of Windsor’s bond rating is not only stable but the Post Retirement Benefits, the sole basis of Eddie’s adamant, arrogant, and myopic reason to file a no-board report and hold the dedicated employees on the picket line for 14 weeks, wasn’t even a significant factor in the city’s bond rating according the bond rater itself.
I will now ask Eddie Francis, the out-going mayor of the City of Windsor, why. Why was there a strike in this town? Why did your personalization of this strike threaten the lives, marriages, and mortgages of 1800 workers? Why did you pit employees against citizens against businesses? You, Eddie Francis, are the cause of this strike, not PRB’s. You are.
Seed Newsvine
5 comments:
If Post retirement benefits weren't the issue, If PRB's were simply an excuse and a diversion, then why did the membership fall for this trickery so easily?
Every benefit has a specific cost that can be shown by accountants. Why not just trade them for their present day value?
had this gone to arbitration, the details would have come to light and the city would have lost their case. If the information you claim is true ,perhaps the truth shall come through when they go after the police and fire department. CUPE will be fuming and I wonder if any law suits would be in the works.
There was no need for a 14 week strike. If the PRB would have been discussed outside of the bargaining for a collective agreement, a concensus would have been reached without the massive loss to the taxpayer and the city worker.
This is not a mayor who care about the taxpayer or his employees. He was trying to build a name for future political reasons. I hope that the people will see the truth and not elect him for any position at any level of government.
Editorial censorship - why solicit comments if you only publish the ones you agree with in your blog.
I allow comments. They are moderated. As I said in my first post, "I welcome all thoughtful and respectful responses should anyone care to post a reply." This isn't a free for all and people don't have carte blanche to post any slanderous or lible comments they wish. If you don't like the rules then don't post a comment. You are free to check off the appropriate box at the bottom of each post indicating if you agree or not.
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