THUNDER BAY – The City of Thunder Bay will review a planned pay band adjustment that would see some managers and other non-unionized staff receive raises “significantly greater” than 4 per cent in 2022, after one city councillor raised concerns over the issue.
Coun. Mark Bentz pushed to review the pay band adjustment, rather than approve it, at a council meeting on Monday. His motion squeaked by on a 4-3 vote, with several councillors absent.
Details of the pay band adjustment have only been discussed in private by council, and city administration has refused to comment on the issue. However, Bentz said some high-level staff would see raises well above the general 4 per cent increase council approved last week for non-unionized employees.
“It is clear to me that some employees in this group will be receiving an increase significantly greater than 4 per cent in this year, which I can’t support,” he said Monday.
In an interview, Coun. Cody Fraser, who voted against Bentz’s motion and supports the adjustment, confirmed some of the 319 staff in the management and non-union group would see significant jumps in compensation.
That would be inappropriate in a normal year, the Neebing Ward councillor said, but he believes a combination of inflation, a tight labour market, and the city falling behind comparable employers makes it necessary.
“I can appreciate Coun. Bentz's concern with the potential raises that are being proposed,” he said. “However, from my perspective, especially coming from private sector life, the competitiveness for employees is at an all-time high.”
“What we’re doing by offering these raises is essentially maintaining our competitive advantage in the marketplace to make sure we’re maintaining well-qualified staff.”
The managers and directors at the city are highly qualified and “any one of them” could find high-level employment in the private sector without the level of public scrutiny working for the city brings, Fraser said.
The adjustment is intended to achieve a city policy of setting compensation levels exactly in the middle of rates paid by a group of comparable Ontario municipalities, using the annual Mercer's survey.
The city lagged behind that benchmark by 9.1 per cent in 2021, staff have said.
“I think it’s a good policy, I just would question some of our comparators,” Bentz said. “Our comparators include a number of municipalities in the GTA, which have much different economic realities than Thunder Bay.”
The city declined an interview request for this story, and refused to answer questions submitted by email about the salary adjustment process.
In a brief statement, city manager Norm Gale confirmed the city “will present additional options regarding the realignment of the salary schedules at a future meeting,” though that’s expected to again take place behind closed doors.
Bentz agrees an adjustment is necessary, but said given its cost, it should be staggered over several years.
“In a city that’s showing very little growth in its [tax] assessment, and we have some industries that are in a precarious spot, I really want to be careful as we move forward, financially,” he said. “We have a lot of goals, and money is very tight.”
He also called for more information to be shared with the public, calling the current process “not very transparent.”
“Our administration wants to communicate with staff how this impacts them before it’s made public,” he said. “But that doesn’t answer my concerns about the taxpayer having access to this information when we make the decision.”
“If we do support the increases that are being recommended by administration, [it’s important] that we give [the public] the reasons for that.”
Another motion Bentz put forward Monday to reduce the general increase for management and non-union staff from 4 to 3 per cent in 2022 failed on the floor, with no other councillor willing to second it.
The 4 per cent increase will cost the city over $1.1 million in 2022. The city declined to disclose how much more the pay band adjustment would cost.
The adjustment is expected to include significant increases for some categories of employees, and no decreases.
The motion passed Monday directs administration to consider alternative options including phasing in the adjustment over more than one year, and report back on the possibility of a communications plan that would allow more details to be shared publicly.
Administration's report will be presented in closed session by June. Bentz said he’s hoping much of that discussion can be brought into public session.
Couns. Bentz, Hamilton, Johnson, and Ruberto supported his motion to review the salary adjustment. Couns. Fraser and McKinnon and Mayor Bill Mauro voted against.
