It's About The Children

In 2004 an income of $89,000 was enough to place an individual in the top 5% of our country's income earners. www.statcan.gc.ca/daily-quotidien/070924/dq070924a-eng.htm. Inflating that figure by 2.5%, a rough proxy for inflation for the last 5 years, gives a threshold of $100,700 to join the top 5% club in 2009.

Thanks to the website of the Elementary Teachers Federation of Ontario, we find this http://www.etfo.ca/BargainingandAgreements/comparingagreements/Pages/default.aspx. Currently a teacher with 11 years of experience in Peel region (a 'burb of Toronto) earns $84,088. I estimate that a teacher has 3 months off. I'll give them one month of holiday and the rest is non-work. $84,088 for 10 months of work equates to $100,900 for 12 months of work.

A teacher's starting salary is $45,744 and grows each year until they reach the maximum of $84,088 11 years later. Every year the grid moves higher with inflation and gains from collective bargaining. For example, the starting - maximum amounts for 2005/2006 were $43,467 -$79,073 and for 2006/2007 were $44,315 - 81,461. I am not sure what their pension benefit is but I bet it is generous. I know it is a defined benefit pension plan meaning they get a percentage of their ending salary for the rest of their life.

I don't begrudge anyone for making a nice salary, especially if I am not paying for it. But, there is too much wrong with the structure of a teacher's remuneration in Ontario that it is worth commenting. Firstly, should teachers earn at the top 5% of income earners? I have a problem with that. It is a tough job with responsibility but so is every job that pays in the top 5% bracket. Secondly, they need to realize the extent of their remuneration. Many teachers complain. This needs to stop. Thirdly, 11 years to maximum salary is a massive benefit. At some point, I will reach my maximum salary. I would have been substantially better off if I reached the maximum 11 years after starting my career. The average teacher will reach maximum earnings at the age of 36. Forthly, they get the two best weather months off.

The power of their union is immense and it amounts to a large special interest group (more on the evils of special interest groups to come in another post). Politicians battle the teacher's union at consederable risk. Ask Mike Harris. There are roughly 170,000 teachers in Ontario out of 12,000,000 Ontarians of all ages. When teacher's say "We need smaller classes" I hear "we want more teachers to make our union even stronger". The politician who secures the blessing of the teacher's union drastically enhances the chance of winning the election and vice versa. But, who has my back?

Teachers and their union are responsible for a large transfer of wealth from the private sector to the (psudo) public sector. This eventually has to be dealt with and scaled back.

RIGHT ON