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Celia: Outsourcing doesn't lead to job growth

Monday, June 09, 2014   by: Staff



NDP candidate Celia Ross raised additional concerns about the OLG modernization plan and the impact that it may have on Sault Ste. Marie.

“Over the long term, outsourcing at OLG will lead to more job losses in Sault Ste. Marie. There is no evidence whatsoever that outsourcing will contribute to any job growth or increased revenue for the OLG” said Ross. “The only people who stand to gain from outsourcing are the people buying up our assets, who can then make a killing by driving down wages and benefits. It will send more profits out of town on the backs of local employees.”

Outsourcing casino management would also allow the Sault Ste. Marie casino to be moved elsewhere in Northern Ontario, which would add to the hundreds of job losses the Auditor General expected would hit the OLG head office in Sault Ste. Marie.

Slowing growth was part of the reason cited for the modernization initiative, which encouraged expanding private sector delivery of lottery and gaming.

But while sales continue to rise for the OLG as a whole, casinos that had been outsourced to private managers, such as the Windsor Casino run by Caesar’s, were faltering.

The new revenue sharing formula for OLG Bingo Halls is another example of a modernization plan that doesn’t make sense.

Where the previous funding arrangement saw the province retain 75% of revenues, the ‘modernized’ scheme sees only a quarter going to the OLG and another quarter to local charities.

Taking home 47% of the revenue, the big winners in the deal are the private operators like Boardwalk Gaming, owned by Larry Tanenbaum, who operate two and own shares in a third OLG Bingo Hall.

Tanenbaum is coincidentally the former National Revenue Chair of the Liberal Party of Canada.

“Once again we have the government speaking out of both sides of its mouth when it comes to the OLG,” said Ross. “The handling of OLG modernization is a scandal in the making. With millions of dollars a year in potential revenue that could be lost, the final price tag could make the gas plant scandals look like peanuts.”

In a media release on Monday, Sault Ste. Marie Liberal candidate insisted “OLG jobs […] are here to stay,” however he did not specify how many.

Once again Orazietti is refusing to rule out job losses in Sault Ste. Marie.

“David Orazietti and the Liberals can’t be trusted on jobs, on OLG, or on their own record of corruption. The Liberals just can’t be trusted at all.”


Note: Comments that appear on the site are not the opinion of If you see an abusive post, please click the link beside the post to report it.
johnnyc 6/9/2014 11:48:46 AM Report

take that David O, go put on your hardhat and get your shovel out, dig yourself a hole and lay down
AlwaysAWinner 6/9/2014 12:04:52 PM Report

so tired of these lying scum uaing things like OLG as their pawn in politics

all of these dummies are acting like children, and the general public eats it up because they're dumb and children too. look at the attack ads and BS that goes on. name calling, you did this, you didn't support that, its the most childish attacks you can perform. the stuff I hear on the radio is stuff seven year olds say on the playground

screw every one of these manipulative, lying scumbags.
northkidd2 6/9/2014 12:12:16 PM Report

Give it up Celia… your misleading statements are getting ridiculous.
Truck 6/9/2014 12:38:07 PM Report

Her statements aren't misleading at all! She's right. I am no fan of the NDP but in this case as it pertains to OLG modernization she is right!
Twist Of Fate 6/9/2014 12:42:08 PM Report

4 years without so much as a cost of living increase for OLG employees and the government wants to continue this. OLG needs modernization in a big big way.
James Ellis Jr. 6/9/2014 12:43:16 PM Report

NDP party will always be my choice of vote. We have not seen anything promised from the Liberals or the PC party. Its time for a change. NDP and Celia Ross you have my vote. Its time for a change.
jimbob 6/9/2014 12:50:44 PM Report

Liberal governments use outsourcing and things like P3 hospitals to reduce the appearance of deficits while inflating the total actual cost to the taxpayers and, at the same time, rewarding the chosen few who get the major benefit of these spurious deals. Crooks who can't count properly!
MR.squiggles 6/9/2014 1:24:42 PM Report

AlwaysAWhiner .... actually agree with you for once
Mr E 6/9/2014 1:29:22 PM Report

Why would anyone want to sell a monopoly...
thumbs4208 6/9/2014 1:40:42 PM Report

There it is right there
"Tanenbaum is coincidentally the former National Revenue Chair of the Liberal Party of Canada."
Celia is right - very right - deal with who ever you are. Modernization or
" privitization" is not needed. Executives with less salaries, less wasting money, less crap and scandal is what OLG needs. Don't believe the hype, Celia nailed it.
Good Job
I wish T Marenelli to read this

KiwiOnASticK 6/9/2014 1:41:55 PM Report

The OLG is a political liability. With a history of scandals and the looming cloud of gambling addiction, no government official wants to be linked to that business. But at the same time, OLG is easy profits for the government. By privatizing the OLG, Ontario can still collect the easy money but push the blame for anything bad off on the private partner.

As for impacts on a city like SSM? Who in Toronto really cares about that?
Twist Of Fate 6/9/2014 1:49:39 PM Report

Privatization is very much needed like I said no cost of living increases in 4 years and none on the horizon. How would feel about that?
Gurpy 6/9/2014 1:57:14 PM Report

NDP is the only way to go! You vote Liberal? You need help real bad!
thumbs4208 6/9/2014 2:05:18 PM Report

privitization will only make the current employees go under. Given time, don't believe the hype. Once the Vendor takes over, the "1 year " is up and boom, re apply, lower wages, we are moving. The Ombudsmen needs to step in now. Too many cooks in the kitchen on this one. I smell scam - big time!
Gurpy 6/9/2014 2:12:27 PM Report

Yes! I agree! Get the ombudsman in here asap!
Truck 6/9/2014 3:09:55 PM Report

Twist of fate...

You think Privatization will make that issue better??
Justin Tetreault 6/9/2014 5:37:40 PM Report

Another OLG press release from Celia?

Here again are Kathleen Wynne's quotes from her visit to Sault Ste. Marie:

“I am committed to keeping the headquarters here in Sault Ste. Marie and keeping those jobs here. It's very important to me that we recognize that is what's working,”

Wynne said she has made “a firm commitment and it's very important to me that we have those jobs here and we make Sault Ste. Marie a gaming centre of excellence because the expertise is here. That is our commitment and we'll stick with it.”
Justin Tetreault 6/9/2014 5:38:42 PM Report

Andrea Horwath won't even visit Sault Ste. Marie. Do you think she cares about jobs here?
rockbanger 6/9/2014 5:40:08 PM Report


Great blog about the P3 financing method of financing our hospital.

Voters must realize they have been HAD.

It was a bold face Liberal lie that P3 financing was a good thing.

The hospital will take many many more years to pay off than Davie has told you.
With a huge number of cities getting NEW hospitals... this province will pay dearly over the long run.

Liberal lie machine....
welcome2 6/9/2014 5:58:55 PM Report

my comments have nothing to do with this article in particular but with the election in general. I never fail to vote and will do so again Thurs but the only thing I know for sure is that I will not vote NDP. I did that once and remember all too well the resulting fiasco that them gaining power created.
Unlike the many Dave O bashers, I believe he has served our community well, and we have received benefits from him being a member of the ruling party. Anyone who thinks otherwise is uninformed. What I do not like about the Liberal platform is that their answer to the multi million dollar deficit this province has is to spend more money. They have made no attempt to tell me as a voter where this money is going to come from. I therefore deduce that it has one of 2 origins a) borrow even more money and drive the deficit even higher or b) raise taxes. Neither of these are appealing to me. I know if my household was buried in debt, the answer would not be for me to go out and spend more money. The required action would be a tightening of the belt and living within our means. It should be no different with gov't.
As for the PC's I believe very strongly that it is possible to reduce public service positions by a substantial number w/o having a huge negative affect on our lifestyle. The Libs and NDP keep banging at "100,000 lost jobs". Tim Hudak has said over and over that the largest majority of positions eliminated will be through attrition. The only people who have reason to complain is those who feel they are entitled to step into one of the eliminated jobs. Let me say no one is entitled in situations such as this.
Tim Hudak has said "whoa, we have to put the brakes on this runaway spending". We have to make it more comfortable for businesses to operate in this province.Yes small business makes up the largest portion of our wage earners but make no mistake about it, each additional large manufacturing/service company that sets up in Ontario, brings hundreds of good paying jobs with it. This is what is required to bring our deficit down.
I don't know who I am going to vote for as I appreciate what Dave O has done but don't like where the Libs will take us. I know Rod Fremlin, know that he has the best interests of our community at heart, believe we need to tighten the reins on spending but am not a fan of Tim Hudak

Gurpy 6/9/2014 6:28:54 PM Report

welcome 2
"anyone who thinks otherwise is uninformed" That is very interesting considering David O was voted in by the people FOR the people yet, does NOTHING for the people! I almost fainted this past week when I telephoned his office and someone actually answered! I was inquiring about the advanced polls. Apparently we have to call his office for that info. I would not have voted for him to save my life! He might be a nice person but not a good provincial rep!
Oreo cookie 6/9/2014 11:48:03 PM Report

Anything that costs the TAX PAYERS money is not economic growth...where is the new desperate proletariat going with this OLG stuff? Where's the MANUFACTURING SECTOR, FOREST INDUSTRY and MINING INDUSTRY. The Rim of Fire project, 60billion$$$ of PRIVATE SECTOR MONEY, killed because of excessive regulations, unreasonable demands by groups with an implacable sense of entitlement and bureaucratic barbed wire all the useless liberals had to do was stay clear and let the economy develop naturally...but NOOOOOO you IDIOTS blew the only chance for a major much needed development. Even the new construction of a state of the art smelter in the Sudbury area was part of this development.
What are you going to do Ms.Ross? Look for more money for the unproductive, or perhaps a few more "opium dens" (public funded methadone clinics) or push the worthy cause of funding for the arts? You are capable of doing nothing Ms.Ross. The jobs are gone and the Tax Payers are tapped out....and the crippler will be our hydro electric bills. The funds that should go to retirement or the education of our children are now going to the PUC.
Berty 6/10/2014 3:17:15 AM Report

Liberals put the province in the state that its in...major deficit...who's paying the price...the government employees on wage and cost of living freezes for the past 6 years..and they expect the employees to take another 2 year freeze...I think they done thier time!!!

PC's are planning on cutting 100 000 government jobs but are planning on creating 1 million jobs...well you better plan on creating 1.1 million...they are screwing all the employees so they don't have to pay out earned benefits and especially PENSIONS!!!

Its time for a change...NDP!!!

Our country and province have to start promoting FULL TIME jobs or our children are doomed!!! Our future doesn't look bright without a FULL TIME workforce...who can live on part time jobs without any one!!!
Twist Of Fate 6/10/2014 7:45:02 AM Report

Yes privatization will change that, you see the problem with the OLG is the fact the it is government run, far too many positions with fancy titles that have no purpose. It is hard to make more profits when every other week they are hiring some new director or VP of redundancy.
All one needs to do is take a walk through the taj mahall on Foster drive and what you will find is office after office of people that cannot even tell you what their purpose is. The OLG is far too top heavy and what has happened is the front line workers are getting the short end of the stick while the upper managers keep reaping the rewards.
We desperately need a company to take over operation of the local casino and run it like it should be run without the government red tape and bureaucracy.
Note: Comments that appear on the site are not the opinion of If you see an abusive post, please click the link beside the post to report it.
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