Ontario unions have won a Bill 124 legal challenge.
The bill, introduced in 2019, capped public sector employee compensation at 1%.
Roughly 70 labour groups launched the court challenge shortly after it was introduced.
The Ontario Superior Court of Justice has struck down the bill on the basis that it violates the fundamental constitutional rights to collectively bargain and to strike, constitutional rights recognized by the Supreme Court of Canada and enshrined in the Canadian Charter of Rights and Freedoms.
Ontario Federation of Labour President Patty Coates says the decision affirms what they have known all along and that Bill 124 is a blatant attack on fundamental trade union rights.
Coates adds, “The court found that Bill 124 had a severe impact on workers’ living standards and a devastating impact on the ability of employees to exercise their constitutionally protected right to bargain collectively in order to improve their compensation and working conditions.”
Steven Barrett is the counsel for the OFL Coalition and states, “The court’s reasons also thoroughly debunk the government’s argument that the wage controls were in any way justified, particularly in view of the various tax cuts implemented by the Ontario government, the absence of any fiscal crisis, and the serious impact on workers of the 1% wage controls, including in the face of significantly higher inflation and widespread recruitment and retention challenges.
The provincial government intends to appeal the court’s decision.
A spokesperson for the Attorney General says, “we are reviewing the decision. Our intention is to appeal.”
