London’s chamber of commerce is adding its voice to the growing chorus speaking out against the provincial arbitration system that’s helped send emergency-worker wages skyrocketing.
Citing earlier concerns raised by Mayor Joe Fontana and his counterparts in other Ontario cities, the chamber is publicly urging the provincial government to change a system that’s “weighted against municipalities.”
“There is only one taxpayer in Ontario and they have reached the tax ‘wall,’” the letter, issued Monday, reads.
“If our overall tax packet continues to rise exponentially as a result of these out-of-step compensation increases for emergency services, Ontario, as a place to invest and bring new jobs, will continue to fall farther and farther behind competing jurisdictions.”
The chamber estimates the budget for London’s emergency services — police, fire and ambulance — has jumped from $85 million in 2002 to $144 million in 2011, a 71% jump in less than a decade.
By its own math, the chamber suggests those budgets could hit a combined $247 million by 2018.
The issue is particularly hot now as the city prepares to negotiate new deals with its police officers and firefighters.
Police are expecting a deal that gives each officer a 3% annual raise — far above the rate of inflation — and add about $2.4 million to the force’s existing 2011 budget of $81.9 million.
That $2.4 million has been set aside in another portion of the budget and is accounted for in the tax freeze council’s expected to approve Monday night.