Those who play at the game of golf and attend charity or fun tournaments will be familiar with the Skins Game. It is a contest to try to have the lowest score on a hole and win a share of the skins purse – to which you may have contributed $5.00. Skins games are usually run by a low-handicapper who believes that he or she has a good chance of winning a hole(s) because they are a better golfer or equally skilled golfer to those in the game. The term ‘skins’ comes from the old practice of collecting the money and holding it in a leather (skin) bag until after the game. I keep trying to win back some of my five dollars by getting lucky with a birdie or a dream hole-in-one. Nada.
To have skin in the game in business means you have invested in an enterprise with the hope of earning a return on your investment. As in golf, there is likely someone running the game who will benefit the most. There are however other ways of benefiting from a skin game. You can place a side bet – gambling on the outcome of a game or enterprise.
Say for instance that there is a large infrastructure project or subdivision development proposal before council. You may not be one of the direct investors or owners but you might have a building supply business that will be selling materials to the developer. You, therefore, have a skin, on the side, in the development and you might whisper in someone’s ear that the subdivision is a great idea. Even your employees have a little skin in the game as more sales guarantee continued employment.
A recent opinion piece decried the salary increase to the Firefighters, but it neglected to say that this was all part of the salary and wages skin game played not only by unions and associations, but also by the City Managers, Chiefs, and subsidiary companies or ABCs. Of course, you try to make a case for a raise based on merit, however, that is old thinking, and that would be a hard sell in some cases. It is easier to say Yes to a COLA clause.
Or you can seek parity with others in the same occupation or skin game.
I recall how as middle managers at City Hall we used to cheer (quietly) for the CUPE union in wage negotiations because we knew that council would give us the same increase in wages. We had skin in the game. It helped that the senior administration also had skin in the game although they solemnly told council that they tried to keep the increases in wages and benefits within the cost of living or Consumer Price Index.
The thing was that CUPE had skin in the game when it came to the Firefighters and Police Association salary ‘bargaining’ sessions: the Associations were essential services and could not go on strike (nor be locked out) so their salary settlements often went to arbitration. The settlements always found few more points than the City offered, which everyone knew would happen, but this set the City workers’ union up with a parity settlement in the next contract negotiation.
Around and around we went.
The fun really began when one of our Associations sought parity with their Toronto counterparts. I think it was the Police first, but in any case, they gained some ground. The Firefighters tried the same ploy and they too gained an increase. Then the later association wanted parity with the former: firefighters and police officers did the same dangerous, complicated work, and should be therefore paid equally, or so they bargained.
CUPE got on the parity wagon and sought comparable wages to other municipalities (and even North Bay Hydro who had parity with Ontario Hydro!). This was a great skins game for middle management, as we did not have to bargain.
One can see how the opinion piece about the Firefighters salaries had very little to do with the men and women who carry the hoses: it is really about the wages skin games that we are locked into. Now that I am retired, I am no longer in the skins game – or am I?
Taxpayers do have skin in the game of the City of North Bay.
We place our money into the city coffers (I think they use the Bank, not a leather pouch) through our taxes, fees, and user-pay services. We hope to get a winning return on our skins. We expect good infrastructure, public safety, timely responses to emergencies, excellent education for our children and selves, a safe place to work, some top-notch recreation facilities, and an opportunity to spend our monies on living the good life. That would be almost as good as a Hole-in-One on #8 in a Skins Game at Highview!
Now if we could only get some parity on our property taxes. Is there any way we can bargain for parity with Toronto taxpayers? After all, if our associations and unions can do it, why not the citizens of North Bay?
Oh, sorry, I forgot: we live North of Barrie.
Maybe I should just throw my money in the pot and yell Fore! Or is that Ford!
