Friday, January 9, 2009

OC Transpo Strike - Financial Windfall For Taxpayers

There was a good article in the Ottawa Citizen on the financial implications of the current contract Ottawa has with the Amalgamated Transit Union, and what the union wants. The author, Randall Denley, correctly points out how these costs affect you and me, the taxpayers. So far, so good.

Now look at this quote from the article, related to the recent survey taken of Ottawans' opinion of the fairness of the city's offer to the ATU:
Despite the inconvenience, a city poll shows that 63 per cent of the public backs the city's position while only 14 per cent are taking the union's side.
This provides a deeper insight into the public's attitude. The majority in Ottawa do not use public transit and so are not directly inconvenienced by the strike except in increased commuting times due to traffic congestion. I am part of that majority. Not only is the inconvenience small, this strike is putting money in my pocket. Here's how.

It hasn't been widely talked about, although Alain Mercier did mention it publicly at least once, that the longer the strike continues the better for the city's financial position. The reason is that OC Transpo operates at a loss. With operations suspended, those losses are averted. Regrettably I don't have the numbers at hand although I do vaguely recall that the amount is some millions of dollars per months (Update: $3M/week according to this article).

Great! Not only am I not inconvenienced, the longer the strike the better the city's books will be balanced. That means prospects for lower property taxes. Count me in.

Perhaps this makes me look overly mischievous, but keep in mind that the ATU is looking out for its members' self-interest so I feel justified in looking out for mine. I want Council to hold firm.

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