McGuinty defends pay-freeze loophole

Ontario Premier Dalton McGuinty is defending a loophole in his budget bill that could allow some non-unionized government staff to keep collecting bonuses while other government workers have their pay frozen for two years.

A report by CBC News revealed on Tuesday that the door is still open for extra pay based on performance, years of service or new qualifications ifexisting pay arrangementsprovide for it.

The loophole seems to coverthe typical ways people might see their pay rise in the absence of an across-the-board percentage increase.

Questioned about it, McGuinty acknowledged thatpaycan still go up, but he blamed it on former premier Mike Harris.

"It'sthe structure that we've inherited," he told reporters outside the legislature. "There are undoubtedly some legal obligations associated with that."

McGuinty was asked if the public will be skeptical about the freezewhensome increases aren't covered. "Well, what we've tried to do is to be fair and I'll let folks make whatever judgment call they think is appropriate," he said.

The budget bill lists three ways pay can rise. They are found on page 66 of the 108-page document, in Section 8(3) of Schedule 25 (Public Sector Compensation Restraint) :

A benefit, perquisite or payment may be increased, or an additional benefit, perquisite or payment provided, to an employee or office holder in recognition of any of the following matters only and only if it is authorized under the compensation plan as it existed on the applicable effective date: 1. His or her length of time in employment or in office. 2. An assessment of performance. 3. His or her successful completion of a program or course of professional or technical education.

Conservative economic development critic Peter Shurman said thepay freeze isn't a freeze at all.

"Well, what's really frozen about it? The fact of the matter is there's wiggle room everywhere," he said.

NDP leader Andrea Horwath said the loophole means that "the Liberals are prepared to take care of their friends, as they always are."

She is calling on the government to reveal how much it is paying in bonuses.

Under the Liberal plan, bonuses will be frozen in one circumstance. If someone gets the maximum bonus his or her contract allows this year, the bonus cannot increase next year. It can still be paid; it just can't go up.

Nor will the public learn how big the bonus was.

Theannual "sunshine list" of public-sector employeesearning more than $100,000 a year comes out on Wednesday. It gives a total pay figure for each person, notspecifyingwhat portion, if any, was a bonus.