Social Contract (Ontario)
Encyclopedia
The Social Contract refers to a 1993 initiative of the provincial Ontario New Democratic Party
government of Bob Rae
to impose austerity
measures on civil service
. The plan imposed a wage freeze and mandatory unpaid days of leave for civil servants, which became known as Rae Days.
since the Great Depression
, with a 1993 deficit of $12 billion annually.
Rae requested $2 billion in wage cuts within the civil service, and asked the public sector unions to work together with the government to implement the cuts. When Ontario's two largest unions, the Ontario Public Service Employees Union
(OPSEU) and the Canadian Union of Public Employees
(CUPE), both boycotted the talks, the government decided to enact the initiative unilaterally.
s, nurses, and accountant
s. The unpaid days off quickly became known as Rae Days and are probably the best known aspect of the policy. The measure did exclude workers who earned less than $30,000 annually.
The Social Contract also re-opened collective bargaining
agreements of all public union
s, and froze the wages of all civil workers.
and the Canadian Auto Workers
Union. Support for the party fell to 6 per cent, and contributed greatly to the NDP's defeat in the 1995 election
to the Progressive Conservatives. The NDP was reduced from a majority
to a third party
, a position from which, as of the 2011 election
, they have not been able to recover.
Rae Days were, however, successful in their original aims. The government saved $1.95 billion, and prevented public employee layoffs.
The Social Contract affected Rae during his 2006 run for leadership of the Liberal Party of Canada
.
Ontario New Democratic Party
The Ontario New Democratic Party or , formally known as New Democratic Party of Ontario, is a social democratic political party in Ontario, Canada. It is a provincial section of the federal New Democratic Party. It was formed in October 1961, a few months after the federal party. The ONDP had its...
government of Bob Rae
Bob Rae
Robert Keith "Bob" Rae, PC, OC, OOnt, QC, MP is a Canadian politician. He is the Member of Parliament for Toronto Centre and interim leader of the Liberal Party of Canada....
to impose austerity
Austerity
In economics, austerity is a policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided. Austerity policies are often used by governments to reduce their deficit spending while sometimes coupled with increases in taxes to pay back creditors to...
measures on civil service
Civil service
The term civil service has two distinct meanings:* A branch of governmental service in which individuals are employed on the basis of professional merit as proven by competitive examinations....
. The plan imposed a wage freeze and mandatory unpaid days of leave for civil servants, which became known as Rae Days.
History
Ontario in the 1990s was in the worst economic recessionRecession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
since the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, with a 1993 deficit of $12 billion annually.
Rae requested $2 billion in wage cuts within the civil service, and asked the public sector unions to work together with the government to implement the cuts. When Ontario's two largest unions, the Ontario Public Service Employees Union
Ontario Public Service Employees Union
The Ontario Public Service Employees Union is a trade union that represents about 120,000 employees in the broader public service of the Province of Ontario, Canada. The current president of OPSEU is Warren "Smokey" Thomas. Prior to Thomas OPSEU was headed by Leah Casselman. Casselman was the...
(OPSEU) and the Canadian Union of Public Employees
Canadian Union of Public Employees
The Canadian Union of Public Employees is a Canadian trade union serving the public sector - although it has in recent years organized workplaces in the non-profit and para-public sector as well...
(CUPE), both boycotted the talks, the government decided to enact the initiative unilaterally.
The Social Contract
The initiative was mainly based around a forced twelve days of unpaid leave for all civil service workers, including (but not limited to) teacherTeacher
A teacher or schoolteacher is a person who provides education for pupils and students . The role of teacher is often formal and ongoing, carried out at a school or other place of formal education. In many countries, a person who wishes to become a teacher must first obtain specified professional...
s, nurses, and accountant
Accountant
An accountant is a practitioner of accountancy or accounting , which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.The Big Four auditors are the largest...
s. The unpaid days off quickly became known as Rae Days and are probably the best known aspect of the policy. The measure did exclude workers who earned less than $30,000 annually.
The Social Contract also re-opened collective bargaining
Collective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...
agreements of all public union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
s, and froze the wages of all civil workers.
Results
The initiative was incredibly unpopular, and the labour-allied NDP lost a majority of its union support, including Buzz HargroveBuzz Hargrove
Basil Eldon "Buzz" Hargrove, OC is the former National President of the Canadian Auto Workers trade union...
and the Canadian Auto Workers
Canadian Auto Workers
The Canadian Auto Workers is one of Canada's largest and highest profile social unions. While rooted in Ontario's large auto plants of Windsor, Brampton, Oakville, St...
Union. Support for the party fell to 6 per cent, and contributed greatly to the NDP's defeat in the 1995 election
Ontario general election, 1995
The Ontario general election of 1995 was held on June 8, 1995, to elect members of the 36th Legislative Assembly of the province of Ontario, Canada...
to the Progressive Conservatives. The NDP was reduced from a majority
Majority government
A majority government is when the governing party has an absolute majority of seats in the legislature or parliament in a parliamentary system. This is as opposed to a minority government, where even the largest party wins only a plurality of seats and thus must constantly bargain for support from...
to a third party
Third party (Canada)
In Canada, a third party usually refers to a relatively small federal or provincial political party that is not usually considered to have a realistic chance of forming a government, but has representation in the federal House of Commons or the provincial legislature...
, a position from which, as of the 2011 election
Ontario general election, 2011
The 40th Ontario general election was held on October 6, 2011 to elect members of the 40th Legislative Assembly of Ontario. The Ontario Liberal Party will form a minority government, with the Progressive Conservative Party of Ontario serving as the Official Opposition and the Ontario New...
, they have not been able to recover.
Rae Days were, however, successful in their original aims. The government saved $1.95 billion, and prevented public employee layoffs.
The Social Contract affected Rae during his 2006 run for leadership of the Liberal Party of Canada
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...
.