The Ontario Government has introduced a new legislation that is entitled Protecting a Sustainable Public Sector for Future Generations Act, 2019. This legislation seeks to cap public sector wages at 1% percent per annum and the cap is expected to last for three years.

If passed, the legislation would apply to bargaining and non-bargaining unit employees, including:

  • Provincial authorities, boards, commissions, corporations, offices or organizations in which a majority of directors, members or officers are appointed or chosen by the province (including Ontario Power Generation, Independent Electricity System Operator and Ornge)
  • School boards
  • Colleges and universities
  • Hospitals
  • Long-term care homes
  • Children's Aid Societies
  • Transfer payment recipients who received more than $1 million in annual funding in 2018
  • The Ontario Public Service

The legislation also contains language that would allow the Government to override collective agreements. It will put time-limited requirements on new compensation increases for unionized and non-unionized employees in Ontario’s public sector.