Item - 2023.EX6.2

The Executive Committee recommends that:

1. City Council ratify and approve the Memorandum of Agreement in Confidential Attachment 2 to the report (June 26, 2023) from the Deputy City Manager, Infrastructure Services, the Deputy City Manager, Corporate Services, the Deputy City Manager, Community and Social Services, and the Chief People Officer between the City of Toronto and Canadian Union of Public Employees, Local 79, in order to effect a revised union wage schedule for incumbents in the noted classifications in the Toronto Building Division.

2. City Council authorize the City Manager, in consultation with the Chief Building Official and Executive Director, Toronto Building, to draw the wage increases payable in 2023 from the Building Code Service Improvement Reserve (XR1305).

3. City Council ratify and approve the Memorandum of Agreement in Confidential Attachment 3 to the report (June 26, 2023) from the Deputy City Manager, Infrastructure Services, the Deputy City Manager, Corporate Services, the Deputy City Manager, Community and Social Services, and the Chief People Officer between the City of Toronto and Toronto Civic Employees Union, Local 416 in order to effect a revised union wage schedule for incumbents in the noted classifications in the Toronto Paramedic Services and Fleet Services, subject to the other caveats within the Memorandum.

4. City Council authorize the City Manager, in consultation with the Chief People Officer, to make the necessary amendments to rates of pay and other issues identified as agreed changes in the Memoranda of Agreement for the noted classifications in Toronto Building, Toronto Paramedic Services and Fleet Services.

5. City Council authorize the public release of the confidential labour relations information in Confidential Attachment 1 to report (June 26, 2023) from the Deputy City Manager, Infrastructure Services, the Deputy City Manager, Corporate Services, the Deputy City Manager, Community and Social Services, and the Chief People Officer, after the conclusion of collective bargaining with CUPE Local 79 and TCEU Local 416 following the expiry of the 2020-2024 collective agreements, including ratification and approval of the collective agreements, by Council, and the completion of all related proceedings.

The Executive Committee recessed its public session to meet in closed session to consider this item as it relates to labour relations or employee negotiations.

The purpose of this report is to provide City Council with an overview of the City's actions to address talent and attraction challenges in Toronto Building, Fleet Services and Paramedic Services. This report also seeks ratification and approval for the Memoranda of Agreement negotiated between the City of Toronto and CUPE, Local 79 and TCEU Local 416.

The agreement with CUPE Local 79 applies revised wage grades and/or salary structure to sixteen (16) bargaining unit classifications within the Toronto Building Division. These revised Toronto Building wage grades would be applied retroactively from January 1, 2022 and will increase their hourly rate by an average of approximately 13% to align with current market rates.

This Memorandum was proposed in response to concerns with compensation, complexity of assignments and workload volume in Toronto Building, all of which are negatively impacting the recruitment and retention of staff. Higher or similar salaries offered for less work volume, scope and responsibility in smaller, neighbouring municipalities has presented recruitment and retention issues for the division, especially in competing for top talent in very tight labour market conditions. This coupled with the current state of rising inflation rates, high cost of living and stringent provincial building code qualifications, places additional pressures with recruitment efforts to find and secure quality applicants. This has presented significant challenges in hiring fully qualified staff. As a result, the Division is hiring more inexperienced candidates and relying on large unsustainable amounts of overtime in an effort meet service demands.

The agreement with TCEU Local 416 applies to three occupations (i.e., mechanics) in two City divisions (Fleet Services and Paramedic Services) that deal with vehicle maintenance and repair. While Toronto Fire Services also employs mechanics, they are not part of TCEU Local 416 bargaining unit.

The agreement with TCEU Local 416 was proposed to address systemic issues related to recruitment and retention of mechanics in Fleet Services and Paramedic Services. In two years, the turnover rate of mechanics in Toronto Paramedic Services and Fleet has increased from 7% to 20% annually. Currently, approximately 23% of mechanic positions are vacant and the divisions are struggling to attract highly-skilled individuals, which is affecting the divisions' service levels. The barriers to attracting and retaining staff are attributable to two systemic issues: below-market wages and a constrained labour market driven by an overall shortage of this skilled trade in Southern Ontario.

The agreement with TCEU Local 416 proposes a higher wage for specific roles within the maintenance teams at Fleet Services and Paramedic Services, as well as an apprenticeship program to pipeline talent into the City.