City manager's memo cites possible job cuts

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Toronto municipal workers are bracing for layoffs after two internal memos sent Monday to city managers raised the possibility of job losses.

The first memo by City Manager Joe Pennachetti speaks of the spending reviews the city is launching to balance its 2012 operating budget.

Under the three-pronged reviews to be undertaken this summer, several city departments and agencies are to be scrutinized in a process involving outside experts, to identify which services are indispensable, what can be done cheaper and what user fees could be raised.

"It is possible that staff will read this to mean that there will be job cuts coming when the reviews are completed and approved by Council," the memo said.

"Until decisions are made and staff notified, all programs and services continue to operate as they currently do."

Another memo, written in question-and-answer format, says that any job losses stemming from the review processes have to be ratified by city council when it approves its 2012 budget in January.

"The City is aware that the loss of employment has a serious impact on the individuals affected," the second document said. "Effort will be made to support any staff displaced through these processes. There are provisions in the collective agreements that are specifically intended to provide support [to]affected staff."

Existence of the memos was first reported by the radio station 680 News.

In a separate note send to employees, Mr. Pennachetti made no mentions of job cuts but spoke of the city's budget crunch and detailed the reviews of core service, efficiencies and user fees.

"We will need to reduce spending and increase revenues to address this shortfall," the note said, urging employees to maintain good services.

Councillor Doug Ford, the budget committee vice-chair and Mayor Ford's older brother, would not comment specifically about Mr. Pennachetti's memos.

But he added that "I'm going to be sitting down with him and discuss it. We have to find efficiencies through the system."

Similarly, another Ford ally, Councillor Giorgio Mammoliti, also spoke about the need for tight financial controls for the year ahead.

"We all need to brace, not just people that work for the city but the whole city needs to brace for what's about to hit us next year. It will be tough."

The memos speak of a projected City of Toronto's budget shortfall for next year of $774-million. However, that gap is now expected to hit $785-million, Councillor Mike Del Grande, the budget chief, reminded the executive committee meeting Monday.

With most money pegged to public transport and policing, there is little margin so any cuts will hurt poorer citizens, Councillor Glenn De Baeremaeker said.

"Our mayor has been elected on a platform to slash and burn the city of Toronto's government. But the city of Toronto doesn't have employees just sitting around, chewing gum with nothing to do. Our city employees are actually lifeguards. They're daycare instructors. They're public-health nurses . . . all of those are very important services."

The review of core services is to be completed in June and the findings presented to council in September.

The efficiency review, which begins next month and ends in August, will examine the Toronto Public Library, Toronto Transit Commission and Toronto Police.

The review will also include the city's divisions for court services, facilities management, fleet services, municipal licensing, parks, housing and solid waste management.