Update on the Ford government’s attempt to cap public sector wage increases

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Under new legislation passed by the Ontario government, Doug Ford is attempting to cap wage increases across the public sector at one per cent each year. Introduced in June, Bill 124 was passed on November 7, 2019. Before it was passed, the bill saw some minor amendments summarized here and in an updated FAQ on the OCUFA website.

There were two areas of amendment impacting faculty. First, parties who reached an agreement or received an arbitration award on or before June 5th will have their moderation period begin at the expiry of that collective agreement. Further, the Minister now has regulatory power to set the moderation period to begin following a collective agreement or memorandum of agreement that expires no later than December 31, 2021.

Second, amendments were made to add several exceptions to the definition of “compensation.” These are:

  • Payments made in accordance with a voluntary exit program that has been approved by the Management Board of Cabinet.
  • Increased compensation provided in exchange for increases in member required contributions that occur as part of the conversion from a Single Employer Pension Plan to a Jointly-Sponsored Pension Plan.
  • Increased compensation for the purpose of reducing the growth of compensation costs over the long-term, if specifically exempted by the Minister.

For more information about the impacts of this legislation, please read OCUFA’s response to the legislation, OCUFA’s analysis of the legislation, and the newly updated FAQ document.

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