Victory for OPSEU: Most DEC members get another chance to opt out
The Ministry of Transportation (MTO) caved in to OPSEU’s demand that DEC members be allowed to re-elect. MTO will now allow most DEC members to re-elect. OPSEU had filed a grievance and after much wrangling MTO agreed to allow these members to decide once again whether they wish to transfer to Serco DES, the new service
provider, or accept a surplus from the OPS.
MTO is NOT extending this same opportunity to all members, but OPSEU is pursuing this matter with the Ministry. If you are eligible you will have received a letter dated May 9 and you will have to re-elect by May 16. If you do not re-elect, MTO will deem you to have opted in for transfer to Serco. Members who elect to
opt-in will be offered at least 85 per cent of their salary by the new employer.
OPSEU is also pursuing the remaining conversion disputes, and as a result of our efforts MTO has recently agreed to convert five more members to full time classified status.
Serco benefit plan a step backwards
The Serco plan provides for a quick fix, but benefits quickly run out. If you are sick or need treatment over the long term you will lose out. Here’s an example: If you go to the psychologist for three $140 visits you get back $420, but your total amount is capped at $500; with the OPS agreement the cap is $1400. So
while you get a lesser amount per visit, you come out ahead if your therapy is long-term (as most tends to be).
Save on your income tax bill
Members should get advice on how to tax shelter their severance, or you could end up paying more tax if you are leaving the OPS and receive termination pay or enhanced severance for pre-1996 service.
The retiring allowance is a tax shelter that allows you to transfer money directly to an RRSP, and you don’t pay tax until later when you take it out of the RRSP. You can do this even if you have maxed out on your RRSP, because this is over and above your annual RRSP limit. So you pay more tax if you take the money all
as cash right away. Contact your Human Resources Department about this.
Serco can afford more
Do you think Serco can afford to pay you more? Do you think they can afford a decent sick time and benefit plan? Do you think they can afford to upgrade their pension plan? We do.
In DEC Notes 14, we reported that Serco’s Chair earned almost $800,000 Canadian. That’s more than the combined income of the Prime Minister of Canada, the Premier of Ontario and the Minister of Transportation. Here’s more:
According to Serco’s annual report, the top four salaried directors earned £1.3 million in salary, or nearly $3 million Canadian, not including generous benefits and pension in 2001. The BBC reports Serco made £24.4 million in profits in 2000. For the first six months of 2002 Serco made nearly £16.2 million in
profits. One investment analyst says Serco made £57 million in 2002. This is on sales of £1.33 billion.
Will they share any of these massive profits with their new Canadian employees? Look at their record:
Much of what Serco does is to buy or lease the operations of government and run them at a profit. How does Serco make these huge profits? Let’s listen to Chris Bowman, Executive Director, Serco:
“Where do the savings come from when you involve the private sector in government services? Let’s look at a Serco private finance initiative. The UK Ministry of Defense outsourced its defense helicopter training to Serco. First, Serco was able to produce savings in staff costs. . . .”
In previous issues we have outlined how Serco has done this in Britain and Australia. What does this mean to you as prospective Serco employees? It means one of three things. Either you will be working harder (because of job cuts to your colleagues), you will be paid at a lower rate, or you will be out of work. There is
no other way to cut staff costs.
A fair wage
OPSEU’s position is that you do an important job and you are entitled to respect and a fair wage for doing that job. Our society depends on you to keep our roads safe. We don’t think the government’s private sector friends should be making exorbitant profits off your hard work.
If Serco can afford to pay its top executives such exorbitant salaries, it can afford a fair wage for the people who do the real work. They are obliged to pay you at least 85 per cent of your salary if you opted in, but there is no reason they cannot pay you more, as other employers have done after OPS divestments.
Serco is a wealthy and successful company that can afford to pay you a fair salary for the important and often dangerous work you do.
This newsletter
Please forward this newsletter to as many of your colleagues as possible. it may be their only source for the “straight goods” on Serco so they can make an informed decision about their future. Let us know what you want to see in future issues. To receive it by e-mail, send your e-mail address to
dcox@opseu.org .
Contact OPSEU
Organizing: Contact OPSEU at 1-800-268-7376. Organizers for the DEC campaign are Paul Dunseith at ext.355, Ed Ogibowski at ext. 362 and Connie Huziak at ext. 327.
Your Job Security Officer is: Judith Marion, OPSEU x 370 jmarion@opseu.org
Your Reasonable Efforts Committee is: John O’Brien, Hm. (807)-628-8066; cell (807)-628-4364; jobrien2@tbaytel.net ; Gail Kreutzkamp home (519)-742-4017;
gailkreutzkamp@hotmail.com; Stephan Michnowiec, pager, 416-405-0050
Your MERC Team is: John O’Brien (as above), Serge Valcourt (705) 472-7900 x 6490, Robert Houston (519) 372-4045, Peggy Maybury (416) 235-4218. Or contact your Staff Representative or the steward in your workplace.
DEC Notes is published as a regular update for OPSEU staff in Driver Examiner Centres. More information on the government’s planned transfer of services can be viewed at:
http://www.opseu.org/campaign/mtooindex.htm on the OPSEU web site.
Authorized for Distribution:
Leah Casselman, President
