Ontario's government fought public workers for years. And lost billions.
Mar 28, 2024
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Explore the Ontario government's failed attempt to cap pay increases for public workers, resulting in a $6 billion cost to taxpayers. Dive into the legal challenges, protests, and implications of repealing Bill 124. Understand the financial impact on the government budget and the contentious exemptions for certain public sector workers.
Bill 124's cap on public workers' pay led to protests and legal battles, costing Ontario $6 billion.
Repealing Bill 124 resulted in billions in back pay for public workers, warning of escalating taxpayer costs.
Deep dives
Origin and Content of Bill 124
Bill 124 was introduced in June 2019 in Ontario to cap public sector workers' salary increases at 1% for three years, sparking heavy criticism from major unions and affecting sectors like healthcare and education. The government framed it as a measure to control budget expenses, leading to legal challenges and protests.
Legal Battles and Repeal of Bill 124
The bitter legal dispute over Bill 124 intensified, with unions arguing against its constitutionality and detrimental impact on workers' rights. After relentless legal battles, including a successful appeal declaring the bill unconstitutional, the Ford government ultimately repealed Bill 124 in March, leading to billions in back pay for public workers.
Financial Impact and Future Implications
The Ontario government's budget soared to a record $214 billion with a substantial deficit due in part to the costs associated with Bill 124's repeal. Public sector workers received retroactive pay, while ongoing estimates suggest potential taxpayer costs exceeding $13 billion, serving as a cautionary tale for governments considering wage restrictions.
In November 2019, months before the pandemic made heroes of public sector workers like teachers and (especially) nurses, Ontario's government passed Bill 124, attempting to cap their pay increases at one percent for the next three years. It didn't go very well.
Earlier this month, after years of protests and bad press, and a legal challenge that went to the highest court ion the province, the same government repealed the bill. And then announced in the budget that the entire fight, including years of back pay, has already cost the province $6 billion in taxpayer money, and could cost billions more. So...what happened here? Why did this fight drag on for years? And would the government have been better off just paying up in the first place?
GUEST: Richard Southern, Queen's Park reporter, CityNews
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