FOR IMMEDIATE RELEASE March 21, 2001

Casselman slams “Social Contract Two”

TORONTO - Ontario public service workers will not accept any “artificial wage constraints” the Harris government tries to impose on collective bargaining, says Leah Casselman, president of the Ontario Public Service Employees Union.

“The Minister of Finance Flaherty seems to be setting the stage for some kind of ‘Social Contract Two,’” said Casselman. “It wasn’t acceptable from Bob Rae, and it’s not acceptable from Mike Harris.”

Casselman made the comments after Finance Minister Jim Flaherty told the Globe and Mail he planned to impose “tough limits” on salary increases for public employees.

“In the Ontario Public Service, inflation has cut our members’ wages by 11.6 per cent over the last eight years,” she said. “If Flaherty wants to bargain towards a strike in the public service this year, he’s going about it the right way.

“At least Bob Rae had the excuse of being short of cash,” said Casselman. “This government’s annual revenues have shot up 30 per cent in the last six years. In 1995-96, revenues were $47.8 billion. This year revenues are $62.1 billion. This government has never had so much money. The real question is, What are they doing with it?”

Casselman scoffed at Flaherty’s remark that “[W]e have a spending problem in this province.”

“Flaherty should read the current budget before he starts talking about the next one,” Casselman said. “Public spending in this province has fallen from 15.9 per cent of Gross Domestic Product in 1992-93 to 11.7 per in 2000-01, down 26 per cent. “The only spending problem this province has is the money corporations are donating to buy favours from the Tories,” she said.

Tickets for Flaherty’s speech tonight to the Mississauga Board of Trade sell for a mere $133.75. “Black tie/dark business suit” required.

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