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ARTICLE · 27 DECEMBER 2022

Ontarios Public Sector Wage Restraint Legislation Found Unconstitutional

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In June 2019, the Ontario government introduced Bill 124, Protecting a Sustainable Public Sector for Future Generations Act, 2019 (Bill 124). Bill 124 limited wage increases for approximately...

CanadaEmployment and HR
Gillian Round
Gillian Round
Christopher Pigott
Christopher Pigott
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In June 2019, the Ontario government introduced Bill 124, Protecting a Sustainable Public Sector for Future Generations Act, 2019 (Bill 124). Bill 124 limited wage increases for approximately 780,000 unionized and non-unionized workers in the broader public sector to 1% per year for a three-year period. Bill 124 applied to:

  • individuals whose wages were paid directly by the Ontario government; and
  • individuals whose wages were fully or partially paid indirectly by the government (e.g. university employees, long-term care home employees).

A broad range of labour organizations challenged the constitutionality of Bill 124. Most notably, they argued that Bill 124 violated their members' rights to freedom of association under section 2(d) of the Canadian Charter of Rights and Freedoms (Charter).

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