Does Reducing City Staff Ever Help?

Miller's Monday Morning Message
presented by ACM Consulting Inc.

Andrew Miller on strategy, operations, life balance and everything in between

Toronto – July 11, 2011 – At some point today, it is likely that Toronto mayor Rob Ford will make an announcement about the future of many City of Toronto workers. In his plan to reduce expenses, Ford will announce a pay package for many employees near or at retirement. His critics will say that he is spending more money needlessly. However, although there are short-term costs to a buyout, the long-term impact is usually positive. For those employees who accept the buyout, the obvious savings come in the reduction of salary and benefit costs, but there is also a reduction in required pension payments, expense reimbursement, payment for sick days as well as a cost avoidance in having to replace those employees and hire new workers. A buyout plan can be effective when core services are not impacted. We should find out later today what services are considered core and how they will be changed. Regardless, we know that there will be cuts made so we should be prepared for it.
 
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Andrew Miller
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© Andrew Miller. All rights reserved. 2011.


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