Markham taxpayers stuck with $276,339 severance bill for 4 departing councillors

Yorkregion.com
June 17, 2019
Tim Kelly

Markham residents got four new councillors last October, but they also got a bill for $276,339 for the four who departed.

That bill was for the total severance package for local councillors Colin Campbell ($52,636), Valerie Burke ($78,954) and Alex Chiu ($118,431), who retired after eight, 12 and 33 years of service on council respectively, and for regional councillor Nirmala Armstrong ($26,318), who was defeated after one term.

Councillors are entitled to severance of one month of pay for each year they serve on council up to a maximum of 18 months.

The severance pay standard was put in place for Markham councillors through bylaws passed in 2002 and updated in 2005.

Only Logan Kanapathi, who served as a local councillor from 2006-18, and then resigned to run and win a seat as an MPP for Markham-Thornhill, did not receive severance because he moved on to a higher office.

Markham isn't an outlier; many municipalities in the GTA pay severance to departing councillors. But there's no common standard when it comes to the maximum amount that is paid out.

In Mississauga, the maximum amount of severance pay is 12 months pay for 12 years service. Longtime mayor Hazel McCallion, who served Mississauga as mayor for 36 years before retiring in 2014, received $139,374.

Similarly, in Toronto, the severance package is 12 months pay for 12 years maximum and 10 councillors claimed that amount in 2018, earning $114,306.

In Stouffville, departing councillors are also paid one month of pay for a maximum of 12 months or 12 years of service.

The standard in Richmond Hill is one month of pay for a maximum of 18 months of current salary, similar to Markham, while in Vaughan, the severance extends all the way up to 24 months, prorated for part years of service.
However, in Aurora, retiring or defeated councillors aren't paid severance.

In Markham's case, Mike Gannon, a frequent attendee at council, said that, in his opinion, “if somebody chooses not to run again or runs for a different office, that’s not severance, it’s either retiring of just leaving the employer and should not be compensated as severance.”

Gannon also believes the maximum amount of time for a payout, “should be consistent for municipalities across the province.”

He points out that in Ontario, according to the Employment Standards Act, an employee must have worked for the employer for five or more years to get severance. He questions why “somebody only having served one term of four years gets severance pay. Why is Markham giving more than the province says it needs to?”

Peter Miasek said he doesn’t like severance.

“In this case, three of the councillors decided voluntarily to not run again. They should not be entitled to severance.”

Alick Siu, president of the Unionville Residents Association, said that, in his opinion, “the job of councillor is not necessarily an easy job as council members have to deal with numerous municipal decisions; big and small legislative responsibilities, and more importantly, have to deal with frequent citizen inquiries and complaints.

“The job requires long hours sacrificing family time and the ability to see through complex issues and situations. The severance is considered justifiable and a token of appreciation to their sacrifice for the community.”

Lawyer Sunira Chaudhri of Levitt Employment Law, doesn’t mince words.

“In the private sector, if you retired you would get zero, not a severance package. Deciding to ‘retire’ and quitting your role are exactly the same thing. People should not choose to go into politics as a lifelong career. You are meant to bring experience to make a short-term impact,” Chaudhri said.

Robert MacDermid, retired York University professor of politics with a specialty in municipal politics, believes politicians deserve severance pay when they leave office.

“A political career often means leaving or foregoing a better-paid job to take a political position that isn’t very well-paid (in comparison to the private sector) considering the importance of the decisions made, most employees qualify for severance.”