Executive Summary:

N/A

Background:

In an attempt to reduce costs for taxpayers while maintaining service levels, on March 7, 2016, a report to council provided information regarding a process that could be implemented for contracting out of caretaking services currently being performed by City staff. This process was based on a phased approach that would avoid job losses for any Regular Full Time (RFT) Caretaker. The Council Resolution in this matter, CR129/2016, reads:

“That administration BE DIRECTED to pursue Option A as contained in the report of the

City Engineer dated February 24, 2016 to outsource caretaking without job loss for any regular full time employees; and,

That administration EXCLUDE the CUPE Local 82 caretakers and to report back at a later date should attrition accelerate and should the outsourcing be recommended; and,

That administration BE AUTHORIZED to notify the CUPE Local 543 Union that administration is exploring the contracting out of caretaking services without job loss for any regular full time employees; and,

That administration BE AUTHORIZED to prepare and issue a Request for Proposal in accordance with the city’s purchasing by-law for the contracting out of caretaking services; and,

That the recommendations of administration on whether and to whom to award the contracts BE REPORTED to City Council for tentative approval prior to entering into the union discussions; and,

That the collective agreement outsourcing steps including notice and provision of information to the respective Union BE FOLLOWED by administration with a confirmatory report to City Council.”

The first phase laid out in Option A was the contracting out of caretaking services at Huron Lodge. Council approved the contracting out of caretaking services at Huron Lodge on January 6, 2017 (CR50/2017), resulting in an annual savings of approximately $605,000. The contracted caretaking services at Huron Lodge began in June 2017 and has proven to be successful.

In order to outsource caretaking without job loss for any regular full-time (RFT) employees in phase one, a transition plan was implemented to enable impacted employees to move into other available regular full-time positions. The transition plan was estimated to take up to four years at a cost of up to $1.9 million. The transition plan was completed earlier than anticipated, and as a result, the $1.9 million originally set aside was not spent, and there was no cost to the Corporation for the transition.