November 2019
Government Passes Bill 124, Protecting a Sustainable Public Sector for Future Generations Act, 2019

2019-11-11 4:34:38 PM

CATEGORIES: Finance

The Ontario government last week passed Bill 124, Protecting a Sustainable Public Sector for Future Generations Act, 2019, which will cap public sector compensation increases at one percent annually for three years. The government reasons the Bill is necessary to reduce the province’s deficit.

While the Bill does not change existing union agreements, the Bill will apply to all future agreements (unless exempt by the President of the Treasury Board by regulation) and can declare future agreements to be inconsistent with the Act and thereby be void.

The Act will apply to the following employers (unless otherwise specified by the President):

  • Ontario Crown agencies

  • Boards within the meaning of the Education Act

  • Universities, colleges, and post-secondary institutions

  • Hospitals under the Public Hospitals Act and the University of Ottawa Heart Institute  

  • Licensees under the Long-Term Care Homes Act, 2007

  • Orgne (not-profit organization providing air ambulance and associated ground transportation services)

  • Children’s aid societies

  • Every authority, board, commission, corporation, office or organization , other than described as above, that fulfils the following conditions:

    • Does not carry activities to gain or profit its members or shareholders

    • Received at least $1 million funding from the provincial government in 2018


This Act has been controversial as the legislation was passed after it was announced that all 28 Ontario Deputy Ministers would be receiving a 14% raise to their annual salary. Many union groups have also voiced their concerns arguing that the Bill contradicts their collective bargaining rights.

For more information, please see below:

Bill 124, Protecting a Sustainable Public Sector for Future Generations Act, 2019

Ontario Newsroom: Ontario Passes Legislation to Protect a Sustainable Public Sector for Future Generations

TVO: Everything you need to know about the public-sector salary cap



 
 


 


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