Public Sector Compensation Restraint

The Ontario government recently passed the Public Sector Compensation Restraint to Protect Public Services Act, 2010.  The legislation prohibits compensation increases for non-bargaining employees in the broader public sector before the beginning of April 2012.

For employees who bargain collectively, the government will respect all current collective agreements. When these agreements expire and new contracts are negotiated, the province expects agreements to be sought of at least two years duration with no net increase in compensation.  The province has clearly stated that it is permissible to negotiate aspects of compensation as long as the parties reach agreements that comply with the government’s expectations that the total compensation package not increase.

Frequently Asked Questions regarding public sector compensation restraint can be found on the Ontario’s Ministry of Finance website.