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Accounting firm’s analysis shows private contractor’s numbers don’t add up,
‘We are prepared to show real savings,’ says CUPE 416 President Mark Ferguson
TORONTO, ON – As City Councillors prepare to vote on a scheme to contract out solid waste service west of Yonge Street, Mark Ferguson, President of the Toronto Civic Employees Union, Local 416 of the Canadian Union of Public Employees (CUPE 416), urged them to take him up on an offer of “real cost savings our members can and will deliver” over a proposal that grows increasingly discredited with every passing minute.
“The city and their so-called ‘Winning Bidder’s” numbers simply don’t add up. Rather than handing over nearly $200 million to a contractor whose math is—at best—questionable, we hope Council will work with our members to deliver real, quantifiable savings that put Torontonians’ needs at the forefront,” said Ferguson.
He added that Local 416 is prepared to share their proposals to improve operational efficiency and save millions of dollars, while keeping solid waste delivery west of Yonge Street in public hands.
“Our members have identified operational efficiencies that, if implemented, would save the City millions of dollars annually. These are not simply numbers pulled out of a hat. Rather, we are prepared to show real savings that address the City’s fiscal challenges, while ensuring solid waste collection remains responsive to residents’ needs,” said Ferguson.
Mr. Ferguson’s statements follow the release of a report by Rosen and Associates, a leading forensic accounting firm, which showed the City had overstated the costs of delivering the service in-house by nearly $6 million, ignored a further $2 million to $4 million in needed contingency and compliance costs, as well as $3 million in available operational efficiencies.
“Taken together, we are talking about an extra $2 million to $4 million in added costs for the proposed private operator. This, coupled with nearly $6 million in costs the City has incorrectly claimed it costs to deliver the service in-house, and the $3 million in operational efficiencies we are offering equals between $11 million and $14 million in savings that don’t exist,” said Ferguson.
“Instead of engaging in a shell game that only benefits a private operator with a tenuous grasp of math, we urge Councillors to let us work with the City. We are prepared to show real savings,” he added.
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For more information, contact:
Mark Ferguson, President, CUPE 416, 416-602-8561
Kevin Wilson, CUPE Communications, 416-821-6641
