[Canada] Cap on public sector workers’ wages found ‘unconstitutional’

On February 12 in Canada, Ontario’s Court of Appeal released its decision on the controversial Bill 124. It found the law that would cap public sector workers’ wages to be unconstitutional, HRD reports.

The court voted 2 -1 in favour of labour groups and unions who challenged the 2019 law.

Ontario Premier Doug Ford’s government reportedly enacted the law in 2019 as a measure to reduce a deficit. It claimed that the salary cap on unionised and non-unionised public sector workers would bring savings of $9.7 billion to the province.

However, Bill 124 received heavy opposition. Many critics claimed it was a significant contributing factor for many nurses leaving public positions public positions for the private sector, according to reporting from The Canadian Press (CP).

In response to the bill, CUPE Ontario Council of Hospital Unions and SEIU Healthcare presidents wrote,

“We urge Doug Ford to end his attacks on the very people we need to fix Ontario’s worsening healthcare system.” 

Labour unions first challenged Bill 124 in September 2022, claiming the law was unconstitutional as it would invalidate the collective bargaining power of workers.

“Bill 124 represents a blatant attack on free and fair collective bargaining,” Patty Coates - president of the Ontario Federation of Labour - said. “It interferes with this constitutional right, and tips the scales in favour of employers even before the parties sit down at the bargaining table together.”

The Superior Court of Justice reportedly declared Bill 124 “void and of no effect”, in November 2022, a decision which the Ontario government appealed.

The latest decision rejects that appeal. The Court wrote that while governments are entitled to control wage increases at certain levels, the processes used are the matter at issue.

"Ontario has not been able to explain why wage restraint could not have been achieved through good faith bargaining," the court wrote in its decision.

Some labour groups have already reportedly been granted retroactive wage increases through arbitration. On February 9, Ontario elementary and high school teachers were awarded a 2.75 per cent wage increase for 2021 – 2022, according to CTV News reporting.

In a statement, Ontario Secondary School Teacher’s Federation president Karen Littlewood said, “This decision reinforces what we have known all along; our members have been underpaid and undervalued for years while the Progressive Conservatives underfunded public education and shortchanged Ontario’s students.”

Source: HRD

(Link and quotes via original reporting)

On February 12 in Canada, Ontario’s Court of Appeal released its decision on the controversial Bill 124. It found the law that would cap public sector workers’ wages to be unconstitutional, HRD reports.

The court voted 2 -1 in favour of labour groups and unions who challenged the 2019 law.

Ontario Premier Doug Ford’s government reportedly enacted the law in 2019 as a measure to reduce a deficit. It claimed that the salary cap on unionised and non-unionised public sector workers would bring savings of $9.7 billion to the province.

However, Bill 124 received heavy opposition. Many critics claimed it was a significant contributing factor for many nurses leaving public positions public positions for the private sector, according to reporting from The Canadian Press (CP).

In response to the bill, CUPE Ontario Council of Hospital Unions and SEIU Healthcare presidents wrote,

“We urge Doug Ford to end his attacks on the very people we need to fix Ontario’s worsening healthcare system.” 

Labour unions first challenged Bill 124 in September 2022, claiming the law was unconstitutional as it would invalidate the collective bargaining power of workers.

“Bill 124 represents a blatant attack on free and fair collective bargaining,” Patty Coates - president of the Ontario Federation of Labour - said. “It interferes with this constitutional right, and tips the scales in favour of employers even before the parties sit down at the bargaining table together.”

The Superior Court of Justice reportedly declared Bill 124 “void and of no effect”, in November 2022, a decision which the Ontario government appealed.

The latest decision rejects that appeal. The Court wrote that while governments are entitled to control wage increases at certain levels, the processes used are the matter at issue.

"Ontario has not been able to explain why wage restraint could not have been achieved through good faith bargaining," the court wrote in its decision.

Some labour groups have already reportedly been granted retroactive wage increases through arbitration. On February 9, Ontario elementary and high school teachers were awarded a 2.75 per cent wage increase for 2021 – 2022, according to CTV News reporting.

In a statement, Ontario Secondary School Teacher’s Federation president Karen Littlewood said, “This decision reinforces what we have known all along; our members have been underpaid and undervalued for years while the Progressive Conservatives underfunded public education and shortchanged Ontario’s students.”

Source: HRD

(Link and quotes via original reporting)