Bottom Line
On June 5, 2019 the Ontario Government tabled Bill 124, entitled
Protecting a Sustainable Public Sector for Future Generations
Act, 2019. The Bill was introduced as part of the
Government's stated plan to address the debt burden and restore
fiscal balance in the province.
Key Components
As currently drafted, Bill 124 proposes establishing a
three-year moderation period, the start and end of which would vary
as between employee groups. Increases to public sector
employees' compensation would be limited to one percent (1%)
every twelve months during the prescribed moderation period.
"Compensation" is broadly defined as including salary,
benefits, perquisites, and all forms of discretionary and
non-discretionary payments.
