Premier Dalton McGuinty says public service workers have been "sheltered" from the recession and strongly hinted that unpaid days off loom for many on the taxpayers' payroll.

McGuinty said Wednesday it's not fair private-sector workers are feeling the pinch while civil servants "clearly" are not, since the province faces a record $24.7 billion deficit this year.

"The issue is now, `So, how can we contribute to the solution?'" the premier said, when asked about the possibility of unpaid "Dalton Days" for tens of thousands of workers.

"I like the alliteration," he quipped, "but we're going to have to sit down with our public-sector partners."

In 1993, former NDP premier Bob Rae mandated 12 days of furlough known as "Rae Days," which infuriated labour unions but prevented mass layoffs.

Speaking to business leaders at an annual economic summit organized by the Ontario Chamber of Commerce in Niagara-on-the-Lake, McGuinty pulled no punches.

"You might argue that we in government have been sheltered from the ravages of the global recession. That's been a privileged position for us to occupy," he said, conceding public servants, including teachers, nurses and bureaucrats might not be pleased with the tack the government takes.

"People inherently want to do the right thing and sometimes the right thing is not the easy thing to do."

Ontario Federation of Labour president Wayne Samuelson said it's "bizarre" that McGuinty may target workers to tackle a deficit that is in part exacerbated by slashing corporate taxes.

"If the government had any ... respect for people and the economy, they would be bringing people together to have conversations rather than going to fancy business soirées and throwing this kind of stuff around," said Samuelson, whose organization represents 700,000 unionized workers in the province.

"It's hurtful, it's not helpful and it just creates unnecessary tensions in people's lives. There are people who will read about this in the paper and they'll worry about being able to pay the rent."

Nor is a Rae-style "social contract" legal any more, said Randy Robinson, of the Ontario Public Service Employees Union, which represents 130,000 workers in government, the Liquor Control Board of Ontario and more than 500 other employers in the public sector.

Robinson noted that in 2007, the Supreme Court of Canada struck down British Columbia legislation that dismantled union contracts and stripped job protection.

"If they are talking about legislating some sort of `social contract'-like legislation, I think they will find that any such legislation is quite likely to be struck down by the courts," he said.

Ontario Nurses' Association president Linda Haslam-Stroud rejected McGuinty's claim that public-service workers have been sheltered from the worldwide economic turmoil.

"Front-line nurses have not been sheltered," said Haslam-Stroud, who pointed out cash-strapped Ontario hospitals have been forced to cut 2.4 million hours of registered nursing care in the past six months.

That's the equivalent of 1,200 registered nurses' positions, she said.

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Haslam-Stroud also said "Rae Days" were an economic boondoggle, at least in hospitals, because nurses on unpaid leave ended up being called in to work on overtime, which ultimately cost more.

Ken Coran, president of the Ontario Secondary School Teachers Federation, said the union has not been told "Dalton Days" are on the table and would expect "strong consultation" on such a move.

"We understand that there is a $24.7 billion deficit and if there are ways to address that issue that would not involve things such as `Dalton Days,' we would certainly be a part of the consultation process – although I can't say we would agree to whatever direction is finalized," said Coran.

No details of any deficit-fighting plan are expected until Finance Minister Dwight Duncan tables the provincial budget next spring.

Among other options the Liberals are considering are a 5 per cent cut of every area of spending except health care and education.

But since $62.6 billion of the projected $113.7 billion budget – or about 55 per cent – goes toward those two big-ticket items, even a 5 per cent trim of the remaining $51.1 billion in expenditures would yield only $2.55 billion in savings.

With four out of every five dollars spent by the province going toward salaries, it may be difficult to avoid "Dalton Days" or, worse, permanent job cuts.

NDP Leader Andrea Horwath said "it does not make any sense" to be considering such draconian measures at the same time as billions in corporate tax cuts are on the horizon for Bay Street.

With files from Kristin Rushowy

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