London CAS Cuts Costs and Jobs, Yet Faces $4.9M Deficit: Union Sounds Alarm

London's child welfare agency, the Children's Aid Society (CAS) of London and Middlesex, is cutting $2.5 million in costs, including laying off 23 workers, but still faces a $4.9 million deficit, according to staff and union representatives.

Emotional Meeting Highlights Frustration

In a recent meeting described as "volatile" and "emotional," workers confronted management about the job cuts and their impact on services. Gerry Healy, a staff member and second vice-president of Local 116 of the Ontario Public Service Employees Union (OPSEU), said: "It was an emotional meeting, people are feeling hopeless. It feels like we’re in an endless cycle of cuts."

The agency informed staff that the layoffs will save $1.5 million, management reductions will save another $681,000, and additional revenue will bring total savings to $2.3 million. However, the deficit remains at $4.9 million, though the Ministry of Children, Community and Social Services may provide $1.2 million in extra funding.

Workers Question Executive Salaries

Staff also expressed anger over executive salaries, which have seen increases of over 10% annually for three years, with some as high as 25% and one manager's increase at nearly 37%. Healy noted, "Their wages are higher than they should be for a non-profit. Their salaries have gone up so much it doesn’t align with wage increases the rest of us are getting."

While the cost of living allowance for managers has been frozen, they can still move up the wage grid. The executive leadership team has eight members, with five managers in HR and six in legal. Workers are calling for ministry intervention.

Political Response and Service Erosion

Terence Kernaghan, NDP MPP for London North Centre, pledged to raise concerns with the minister and Premier Doug Ford. "This is a huge concern. This organization provides critical services and vulnerable children will pay the price," he said, noting an "erosion of funding for frontline workers."

CAS officials stated that while executive cost of living is cancelled, unionized workers will receive a 3% wage increase. The agency said it is working closely with the province to ensure financial sustainability.

Broader Context of Cuts

The layoffs follow the closure of its medical clinic in 2025, a bed and staff shortage leading to children placed in hotels or sent out of town, and earlier layoffs of 19 staff in 2024. In 2012, London CAS closed its last six group homes. One eliminated position is a safety protocol specialist who developed crisis intervention plans for volatile situations. Laid-off workers will leave on September 11.