McGuinty offensive on public sector wages

Premier McGuinty returned to the issue of public sector wages in a talk to an elite Ottawa audience: 

"We can't tackle the deficit without tackling public sector wages and salaries. That accounts for one half of all government spending -- about $55-billion. It is simply not possible to reduce spending without addressing salary expenditures...I cannot guarantee there will be no interruption in public services. But I can guarantee our government will negotiate fairly and firmly to a result that keeps us on a sure and steady path to eliminate the deficit... I’m sending a message to our public sector partners . . . there are legitimate public expectations that we’ll do everything we can to eliminate the deficit as quickly as we can."

When asked, McGuinty did not rule out job cuts and wage reductions, saying only that details would be spelled out in the provincial budget -- which is usually released in March.

Inflation is currently running at 2% in Ontario.

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