CEO Urges Council to Adopt Governance Recommendations

5 Apr 2010

Reversing pay cut bad optics -- bad timing!

Great leadership, like great comedy, is often a matter of great timing. Most would agree that a poorly timed punch line often results in a round of boos as opposed to its well-intended, rib-busting laughter. Similarly, leadership opportunities gone askew can often result in a backlash from the electorate. The timing of Council's decision to restore a voluntary salary cut that will see their wages return to 2008 levels could certainly have been better.

What clearly should have been a simple by-law change that would have passed unnoticed in the night, has turned into a very thorny issue for this Council. It seems to me that if I (as a Councilor) had voted to pass such a by-law in the first place, wouldn't I be duty bound to remind myself (if not others) that the timing on that voluntary cut had an expiry date. But what the heck, I digress and besides it's easier to blame administration.

Let's be clear, the Council is not getting a raise -- not really. They are simply restoring their compensation back to the level it was at before the self-induced pay cut which was to have been in effect for one year only. Okay, we get that, but what a golden opportunity to demonstrate that by-laws notwithstanding, we (the Council) want to show Londoners that we sympathize with their economic plight and we vote to maintain that wage freeze yet again. In fact we'll (the Council) continue to do so until we are assured that the economic recovery is solidly in place and the majority of Londoners are back to work.

Even if you don't like the nobility of such a move, Council could have adopted another, simpler scenario. They could have said look, why don't we suspend any and all discussion regarding our compensation until we act on the advice of our own Governance Task Force. Here's what was reported back on March 10th of 2009 at the 11th Report of the Committee of the Whole. The Governance Task Force Committee report under "Council Compensation", item #13 (1) states the following:

That an independent panel, comprised of representatives of each of the London Chamber of Commerce, the Urban League of London, the London and District Labour Council as well as two citizens-at-large, BE ESTABLISHED AND BE PROVIDED with the necessary research assistance and support to examine appropriate compensation for elected officials, in advance of the next Council term, and to identify a process for the regular review of Council compensation.

Two things strike me as obvious. One, right now is in fact - in advance of the next Council term - and two, although I cannot speak for the other named organizations, here at the Chamber we are still waiting for the call to meet with the independent panel to examine appropriate compensation for elected officials. Who knows, that panel may have even suggested a much higher pay raise. We're waiting.

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