Bill 124 Wage Cap

Bill 124 – Restricts Compensation Growth
Are you aware of this Bill and how it impacts you?

What is Bill 124?

The Ford government introduced/passed Bill 124, Protecting a Sustainable Public Sector for Future Generations Act, 2019, in October 2019. It is wage-suppression legislation that restricts compensation growth within the public/broader public sectors for all employees.

Applies to not-for-profit organizations that received at least $1 million in Ontario government funding in the fiscal year 2018-2019 (received by Queen’s University). It applies to both unionized and non-unionized employees.

It sets a 3-year moderation period during which there is a wage restraint or cap each year.

Increases to compensation are limited to a total of 1% (or less; below the rate of inflation) in each of the 3 moderation years. This also includes benefits and one-time payments.

Who is Impacted by Bill 124 at Queen’s

Local 2010-01:
For Academic Assistants, it impacted your Cost of Living Increase during the life of your current contract (September 1, 2020 to August 31, 2023).

Local 2010-01 have almost completed the 3-year moderation period of 1% in each year (September 1, 2020, September 1, 2021, and September 1, 2022).

Local 2010:
For Support Staff this has impacted your Scale Increase (aka cost-of-living; ATB increase, etc.) for your current contract (January 1, 2022 to December 31, 2024).

Bill 124 is subject to exceptions for certain merit or performance increases, length of service, etc., which allows Support Staff to receive their Step Increases in each year of the contract if eligible.

Local 2010 Members who are moving through the USW Deferred Wage Salary Grid during the 3-year moderation period, are still eligible to receive Step Increases in each year.

Local 2010 received a 1% Scale Increase July 1, 2022. Two more years of 1% Scale Increases are expected for July 1, 2023 and July 1, 2024.

Who is not Impacted by Bill 124 at Queen’s?

Bill 124 does not apply to “designated executives within the meaning of the Broader Public Sector Executive Compensation Act, 2014”. Essentially, it applies to employees only, not employers (management).

For personnel at Queen’s this means it does not apply to:

Senior Leadership,
Salary Grades 10-14, or,
Grades 8-9 who are excluded from a bargaining unit because they are “deemed a Manager”.

Queen’s however, adopted a “same as you” or “parity” policy and paid the personnel noted above in accordance with Bill 124 parameters; essentially 1% per year for 3 years the same as Steelworkers.

Our Bargaining Rights

For unionized employees, the moderation period begins automatically from the first day of the first Collective Agreement negotiated after June 5, 2019.

During the moderation period, Collective Bargaining is also limited, as Bill 124 restricts our right to bargain both wages and new entitlements.

The Ford government made it very challenging for Steelworkers (Academic Assistants in 2020 and Support Staff in 2022) to bargain, as they have prevented us from freely negotiating with Queen’s.

USW and other unions (Coalition of Ontario Unions) put forward a legal challenge to this legislation.

In November 2022 the Ontario Superior Court of Justice declared Bill 124 (Protecting a Sustainable Public Sector for Future Generations Act, 2019) to be unconstitutional and deferred the specific remedy to a later hearing.

To date, the Employer continues to rely on Bill 124 to limit your Cost of Living/Scale Increase percentages to 1% for those contracts already in place.

Enforcement

Bill 124 also prohibits employers from providing increases to salary or compensation before or after the 3-year moderation period to make up for amounts that would otherwise have been paid during the moderation period (“anti-avoidance measures”).

Significant compliance powers to Ontario Treasury Board (penalties/sanctions against employers).

The Minister of Labour can order the cancellation of Collective Agreements or Arbitration Awards/Rulings inconsistent with Bill 124.

No meaningful change to Provincial Budget

Provincial funding is allocated on a per-student basis, not wages of employees. On average, provincial funding represents only one-third (⅓) of university revenue in Ontario.

Wage increases in university sector will have negligible impact on provincial deficit, both pre-and-post pandemic.

Ontario Superior Court of Justice Decision