25 September 2023

CANADA: PS pay cap to hit a million

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CANADA

The Government of the Canadian Province of Ontario has introduced legislation to cap wage increases for more than a million of its public sector workers.

The legislation, which would see a 1 per cent cap for three years, passed its first reading in Parliament in a 64-to-40 vote.

Union and non-union employees of school boards, universities and colleges, hospitals, long-term care homes, the air ambulance service, children’s aid societies, broader public sector organisations, and boards and commissions that receive at least $1 million in Provincial funding are affected.

It does not apply to municipalities, including local fire and police services.

President of the Treasury Board, Peter Bethlenfalvy said the move was part of the Government’s effort to eliminate the Province’s C$11.7 billion (A$12.6 billion) deficit.

“Action must be taken and everyone must do their part,” Mr Bethlenfalvy said.

“Introduction of this legislation does not impose a wage freeze, rollback or job cuts.”

President of the Ontario Public Service Employees Union, Smokey Thomas (pictured) raised the possibility of a legal challenge, saying the legislation violated unions’ ability to bargain collectively.

“I think they’re going to have a long hot summer,” Mr Thomas said.

“My union and others will target all those Tory Members of the Provincial Parliament, their constituency offices, their fundraisers, their golf tournaments, their barbecues — we’ll screw every one of them up.”

Recent public sector wage increases have averaged 1.6 per cent a year and the average employee makes C$64,000 (A$69,200), Government officials said.

Further votes on the legislation are expected later this year.

Toronto, 7 June 2019

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