Ontario Owes $6 Billion To Public Sectors Workers In Bill 124 Compensation
Ontario is on the hook for the unforeseen financial strain of over $6 Billion to Public Sector workers in account to Bill 124 Compensation.
Ontario is in a financial bind, owing over $6 Billion to public sector workers following a court ruling that declared the government’s salary cap legislation unconstitutional. Bill 124 capped salary increases for broader public sector workers at one per cent a year for three years, but after the Court of Appeal for Ontario ruled it unconstitutional the government repealed it.
It has been observed that after the lower court found the law unconstitutional in 2022, other unions have been seeking an increase in their pay to constitute above one percent a year. The government officials are restricted to speak about the costs while the amount adds up to $6,000,800,000.
The province’s financial accountability officer highlighted in a report earlier this month that compensation in the health and education sectors led the government to spend billions more than it was planned.
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