The Council believes strongly that while the focus of the Government's infrastructure development plan is getting assets built better, faster and cheaper, the success of these projects will rely heavily on the people that operate them.
Public sector unions in Ontario have generally been vocal opponents to any schemes that may result in weakening collective bargaining (real or perceived). Public-private partnerships, in particular, often evoke significant fear among employees who are afraid their security and benefits will be eroded under a private operator. While this opposition is characteristic of almost any P3 initiative around the world, several proven strategies have been employed to mitigate conflict and even gain popular support among union leaders.
The Council's publication "Transitioning Staff from Public to Private Organizations in Public-Private Partnerships" (see enclosed) provides an overview of many of these strategies and is a valuable resource on how to successfully manage collective bargaining issues, but there are two topics (proactive communications and more flexible legislation) that warrant particular emphasis.
Case studies of employee transitions at the Vancouver Airport, Royal Ottawa Hospital, Goderich Water & Wastewater System and Bruce Nuclear Power Station all recognized the critical importance of open communications with union leadership and members throughout the process. One of the greatest concerns of such transitions is fear of the unknown, and both the government agent and private partner need to communicate what changes will come into effect and what opportunities lay ahead. Employees need to be told clearly and honestly what is happening and be given an effective forum to voice their concerns.
There are currently a number of legislative disincentives at the municipal level concerning employer-employee relations when services are transferred to the private sector. In particular, barriers can be found in the application of the successor employer provisions of the Labour Relations Act to employers who purchase businesses from municipalities that bind such employers to the collective agreements existing at the time of the sale. Some collective agreements also prohibit or severely limit the municipality's ability to contract out services to the private sector. In contrast, employers who purchase businesses from the provincial government are expressly exempt from such provisions.
Additionally, municipalities that employ fair wage policies may discourage potential private sector partners by requiring them to calculate and pay wages and benefits on a rigid and inflexible basis, and by preventing innovative forms of compensation such as incentive pay, bonuses and profit sharing.