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ARTICLE · 11 JUNE 2019

Ontario Government Introduces Legislation To Cap Public Sector Wage Increases

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On June 5, 2019, the Ontario government introduced Bill 124, Protecting a Sustainable Public Service for Future Generations Act, 2019, with the aim of capping public sector wage increases to one per cent annually...

CanadaEmployment and HR

On June 5, 2019, the Ontario government introduced Bill 124, Protecting a Sustainable Public Service for Future Generations Act, 2019, with the aim of capping public sector wage increases to one per cent annually for the next three years. This article covers what you need to know.

What are the moderationmeasures and how long will they last?

The moderation measures limit salary and compensation increases to 1 per cent per year over a three-year "moderation period".

When does the three-yearmoderation period begin?

For unionized employees, the three-year moderation period begins at the expiry of the collective agreement that is in force as of June 5, 2019. If no collective agreement is in force or parties are bargaining for first collective agreement, the three-year moderation period begins when the new collective agreement comes into force.

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