The salaries of top management: out of control

MONTREAL, Feb. 9 /CNW Telbec/ - The leader of the second opposition at Montreal City Hall and councillor for the district of Jeanne-Mance, Richard Bergeron, and Peter McQueen, financial critic for Projet Montréal and city councillor for the district of Notre-Dame-De-Grace, released details this morning obtained by Projet Montréal through an access to information request. This comes from a wide-ranging investigation into salaries paid out to upper management by the City of Montreal and by associated organizations such as the STM and by the Société du parc Jean-Drapeau. "City of Montreal employees, including top management, deserve an annual pay raise. But the data that we have compiled shows that these increases given to upper management have clearly gone too far, given that upper management already receives salaries that are more than competitive," said Richard Bergeron.

"Projet Montréal revealed that in 2011, the salary increases for the City's upper management will be in the order of 6.5% to 12%, as opposed to salary increases observed elsewhere in Quebec's public service and among other City of Montreal employees who will see increases of only around 2%," added Peter McQueen. This analysis also notes that the managers at STM have 13 of the top 20 highest salaries paid by the City and its associated organizations: Yves Devin, the CEO of the STM is more richly compensated than Montreal's City Manager Louis Roquet ($313,188 per annum versus $300,000). Another surprise concerns la Société du parc Jean-Drapeau, a para-municipal organization whose five directors received a record $63,700 in bonuses last year.

The STM, champion of pay increases

A restructuring of the senior administration at the Société de Transport de Montréal (STM) in 2010 resulted in the adding of 4 positions there and increasing the payroll of senior executives by 17.6%. Even though they received no bonuses, the forty-odd directors at the STM shared some $6.2 million in 2010, an increase of $932,794 compared to 2009. Projet Montréal noted ten increases between 8 and 13%, corresponding to additional amounts varying from $18,000 to $23,000, and one increase of 23%, equalling some $32,000. "The money slated for public transport should be invested in improving the service before remunerating senior managers who are always becoming more numerous and better paid," declared Projet Montréal's leader, Richard Bergeron. He noted in passing that the fare schedules of public transportation have increased by 50 % since Gérald Tremblay became Mayor of Montréal. And the price of a monthly bus pass (CAM) has gone from $48.50 in December 2001 to $72.50 today.

The Société du parc Jean-Drapeau doles out some juicy bonuses

Projet Montréal has learned that the five directors at the Société du parc Jean-Drapeau won the prize for the juiciest bonuses, with these amounts varying from $9,700 to $19,400 in 2010, for work done in 2009. "And let's remember that in 2009, they must have had a fairly quiet summer given the cancellation of the Grand Prix in June. Let's not forget that the year earlier, Montreal's auditor-general strongly criticized management at the Société du parc Jean-Drapeau in his annual rapport, especially concerning their master plan, the maintenance of installations and their financial reporting to the Executive Committee," noted Peter McQueen.

It is the new general manager at the Société d'habitation et de développement de Montréal (SHDM), Guy Hébert, who received the biggest bonus in 2010 to the amount of $25,402. This is on top of his salary of $185,076. Mr. Hébert came to the rescue of the SHDM in December 2008 during a time the organization was generating a lot of bad publicity in 2008 and 2009 following the departure of Martial Fillion and revelations about the sale of land at the Faubourg Contrecoeur project.

Also, among the bonus prize winners isJean-Guy Gagnon, Assistant Director of the SPVM—and unsuccessful candidate to become the police chief of the SPVM in 2010— received a bonus of $17,026. Pierre Reid, the former senior director of human resources, who has since become controller general, and who last year came to the defence of Mayor Tremblay in the TELUS affair by writing an open letter published in La Presse, figures among the best paid employees of the city, with a bonus of $13,652 in 2010.

Projet Montréal shows that expenses linked to salaries for upper management at the City of Montréal and its affiliated organizations are out of control. It has become urgent to reduce the number of upper managers and to reduce the budgets which are associated with their remuneration. "Given the present situation with public finances at the City of Montréal, it is critical to return things to order among our upper managers. It is unthinkable, while our tax bills have been going up by 5.8% in 2010 and will climb by 4.3% in 2011, that we sit back and watch an explosion of big salaries among top administrators at the City of Montréal," concluded Richard Bergeron.

To retake control of the situation, Projet Montréal is making three propositions to Mayor Gérald Tremblay:

Proposition 1: That upper management at the City and its affiliated organisations receive the same salary increases, including bonuses that the average municipal employee receives.

Proposition 2: That to determine the appropriate level of remuneration for upper managers, the City should use comparables among other municipalities across Quebec and within the province's public service.

Proposition 3: That the number of upper managers within the City and its affiliated organisations should be reduced by about 500 positions to arrive at a ratio of 1 upper manager per 14 employees, as opposed to 1 per 10 at present, and that the payroll of these upper managers be reduced by this same proportion.

To access various explanatory tables:
Tableau 1 : Les plus hauts salaires de l'administration montréalaise en 2010
http://www.projetmontreal.org/files/documents/2011_02_09_projetmontreal_document_1297260464_fr.pdf
Tableau 2 : Les plus hauts bonus de l'administration montréalaise en 2009 (versés en 2010)
http://www.projetmontreal.org/files/documents/2011_02_09_projetmontreal_document_1297263098_fr.pdf
Tableau 3 : Les plus hautes augmentations de salaire de l'administration montréalaise (en excluant les élu(e)s) en 2010
http://www.projetmontreal.org/files/documents/2011_02_09_projetmontreal_document_1297260691_fr.pdf
Tableau 4 : Top 50 des salaires des cadres de direction de la Ville de Montréal (excluant la STM, les élu(e)s et le personnel politique), 2009-2010
http://www.projetmontreal.org/files/documents/2011_02_09_projetmontreal_document_1297260773_fr.pdf
Tableau 5 : Les salaires des cadres de direction de la STM et de la Société du parc Jean-Drapeau en 2010
http://www.projetmontreal.org/files/documents/2011_02_09_projetmontreal_document_1297260858_fr.pdf


SOURCE VILLE DE MONTREAL - CABINET DE LA 2E OPPOSITION

For further information:

Catherine Maurice
Press Attachée with the 2nd opposition
514 872-3153
514 601-5542
catherine.maurice@ville.montreal.qc.ca

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VILLE DE MONTREAL - CABINET DE LA 2E OPPOSITION

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