March 02, 2016
Partner and head of our Pensions and Employment Practice Mitch Frazer was sought for comment for a Toronto Star article covering the ongoing City of Toronto labour union talks. As reported in the article and discussed by Mitch, the rising cost of employment benefits poses a challenge to the issues being addressed in these negotiations. Below is an excerpt of the article.
Mitch Frazer, a partner and chair of the pensions and employment practice with Torys LLP, who is not involved in the city’s labour talks, said in these challenging economic times, governments and private sector companies across the country are trying to reduce or eliminate benefits, which have been rising above the rate of inflation.
He agreed with the city’s claim that its benefits program is more generous than most, with most private sector employers offering an 80-20 cost-share arrangement.
But Frazer said it’s also reasonable that municipal workers would want to hang onto their benefits, considered “an exchange for compensation” they might have received if they worked in the private sector.
To read the full article, click here.