Compensation, Benefits and Policy Changes for the Professional & Managerial (PM) and Confidential Staff groups

HR #44, 2011-12

March 15, 2012

To: PDAD&C
Professional & Managerial Staff
Confidential Staff

From: Angela Hildyard, Vice-President, Human Resources & Equity

Re: Compensation, Benefits and Policy Changes for the Professional & Managerial (PM) and Confidential Staff groups

I am very pleased to report that Business Board has approved a number of compensation increases, and some policy changes, for the Professional & Managerial Staff and Confidential Staff groups, for the period April 1, 2012 to June 30, 2014.

Although Professional & Managerial and Confidential staff received merit increases in 2009, 2010 and 2011, in contrast to their University of Toronto colleagues they received no other increases to compensation, including no Across-The-Board (ATB) increases. We have, therefore, sought approval from Business Board for an ATB increase to these employees as soon as The Public Sector Compensation Restraint Act ends on March 31, 2012. Business Board has also approved a number of small benefit improvements. Complete details of all changes, including policy changes, are outlined on our HR & Equity website as follows:

Summary of Compensation, Benefits and Policy Changes for Professional & Managerial Staff

Revised Professional & Managerial Staff Policies (effective April 1, 2012)

Summary of Compensation, Benefits and Policy Changes for Confidential Staff

Revised Confidential Policies (effective April 1, 2012)

The Compensation Restraint legislation makes it very clear that there is to be no "catch-up" following the end of the two-year period of restraint. With this in mind, the proposed ATBs are comparable to those negotiated with unionized employees and also take into account the need for employee pension contributions to increase over the next two years.

As noted above, PMs and Confidentials also received no ATB for the 2009-10 year, since the compensation restraint legislation froze salaries as of the date of enactment, thereby precluding us from implementing a retroactive increase. Accordingly, Business Board approved adding a small enhancement to the July 1, 2012 and July 1, 2013 merit pools.

The University understands that the need for compensation restraint in the broader public sector may mean that the upcoming Provincial Budget will contain further compensation restraint measures. The University believes that the increases approved for the PM and Confidential groups are consistent with the restraint's objectives and hopes that we will be able to implement these well-deserved increases, consistent with those being provided to other groups for this same period.

In meeting with the PM and Confidential Advisory Committees, I have been asked whether the University would still require PMs and Confidentials to pay increased pension contributions in the event that the government imposes further compensation restraint. The Government has made it clear, through very specific metrics, that we are expected to increase employee contributions in order to ensure the long-term sustainability of our pension plan and to provide the University with solvency relief. We will, therefore, implement the pension contribution increases even if there is further compensation restraint imposed by legislation.

I am sure you, like me, will pay very close attention to the Provincial Budget when it is released towards the end of this month. I sincerely hope that nothing in the budget will prevent us from implementing the full range of changes approved by the Business Board.