Protecting a Sustainable Public Sector for Future Generations Act, 2019, S.O. 2019, c. 12

JurisdictionOntario

Protecting a Sustainable Public Sector for Future Generations Act, 2019

S.o. 2019, chapter 12

Consolidation Period: From April 11, 2022 to the e-Laws currency date.

Note: This Act is repealed on a day to be named by proclamation of the Lieutenant Governor. (See: 2019, c. 12, s. 40)

Last amendment: 2021, c. 39, Sched. 2, s. 22.

CONTENTS

Preamble

The Government is committed to restoring the Province’s fiscal health by putting Ontario on a path to balance the budget in a responsible manner. As outlined in the Government’s 2019 Budget, the Government inherited a very substantial deficit. Ontario’s accumulated debt is among the largest subnational debts in the world, and the Province’s net debt to Gross Domestic Product ratio exceeds 40 per cent. Interest on debt payments is the fourth largest line item in the 2019 Budget after health care, education and social services.

Restoring sustainability to the Province’s finances is in the public interest and is needed to maintain important public services that matter to the people of Ontario. The Government seeks to ensure the sustainability of public services by restoring fiscal balance and lowering Ontario’s debt burden as a percentage of Gross Domestic Product. The Government also seeks to protect front-line services and the jobs of the people who deliver them.

A substantial proportion of government program expenses is applied to public sector compensation, whether paid directly by the Province to Ontario Public Service employees or provided indirectly to employees in the Broader Public Sector. Given the fiscal challenge the Province is facing, the growth in compensation costs must be moderated to ensure the continued sustainability of public services for the future.

This Act contains fiscally responsible measures to address compensation in the Ontario Public Service and for specified Broader Public Sector employers. These measures would allow for modest, reasonable and sustainable compensation growth for public sector employees. For public sector employees who collectively bargain, these measures respect the collective bargaining process, encourage responsible bargaining, and ensure that future bargained and arbitrated outcomes are consistent with the responsible management of expenditures and the sustainability of public services.

The Government believes that the public interest requires the adoption, on an exceptional and temporary basis, of the measures set out in this Act.

Therefore, Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Purpose

Purpose

1 The purpose of this Act is to ensure that increases in public sector compensation reflect the fiscal situation of the Province, are consistent with the principles of responsible fiscal management and protect the sustainability of public services.

Interpretation

Interpretation

2 In this Act,

“collective agreement” includes,

(a) a collective agreement within the meaning of the Labour Relations Act, 1995, and

(b) any agreement, whether negotiated or the result of an arbitration award, between an employer or an employers’ organization and a bargaining organization to which this Act applies, in respect of compensation for employees; (“convention collective”)

“compensation” means anything paid or provided, directly or indirectly, to or for the benefit of an employee, and includes salary, benefits, perquisites and all forms of non-discretionary and discretionary payments; (“rémunération”)

“compensation plan” means the provisions, however established, for the determination and administration of an employee’s compensation; (“régime de rémunération”)

“directive” means a directive made under this Act; (“directive”)

“employers’ organization” means an organization of employers, or an organization that represents employers, that negotiates terms and conditions of employment relating to compensation; (“association patronale”)

“Minister” means the President of the Treasury Board or such other member of the Executive Council to whom responsibility for the administration of this Act may be assigned or transferred under the Executive Council Act; (“ministre”)

“moderation period” means a moderation period determined in accordance with section 9, 17, 23.1 or 23.2; (“période de modération”)

“non-represented employee” means an employee to whom this Act applies who is not represented by a bargaining organization or is excluded from being represented by a bargaining organization to which this Act applies; (“employé non représenté”)

“regulations” means regulations made under this Act; (“règlements”)

“salary rate” means a base rate of pay, whether expressed as a single rate of pay, including a rate of pay expressed on an hourly, weekly, bi-weekly, monthly, annual or some other periodic basis, or a range of rates of pay, or, if no such rate or range exists, any fixed or ascertainable amount of base pay. (“taux de traitement”) 2019, c. 12, s. 2; 2020, c. 36, Sched. 38, s. 1.

Section Amendments with date in force (d/m/y)

2020, c. 36, Sched. 38, s. 1 - 08/12/2020

Right to bargain collectively

3 Subject to the other provisions of this Act, the right to bargain collectively is continued.

Right to strike

4 Nothing in this Act affects the right to engage in a lawful strike or lockout.

Application

Application to employers

5 (1) This Act applies to the following employers, unless a Minister’s regulation specifies otherwise:

1. The Crown in right of Ontario, every agency thereof and every authority, board, commission, corporation, office or organization of persons, a majority of whose directors, members or officers are appointed or chosen by or under the authority of the Lieutenant Governor in Council or a member of the Executive Council.

2. Every board within the meaning of the Education Act.

3. Every university in Ontario and every college of applied arts and technology and post-secondary institution in Ontario, whether or not affiliated with a university, the enrolments of which are counted for purposes of calculating annual operating grants and entitlements.

4. Every hospital within the meaning of the Public Hospitals Act and the University of Ottawa Heart Institute/Institut de cardiologie de l’Université d’Ottawa.

5. Every licensee under the Fixing Long-Term Care Act, 2021, other than a licensee that carries on its activities for the purpose of gain or profit to its members or shareholders.

6. Ornge.

7. Children’s aid societies.

8. Every authority, board, commission, corporation, office or organization of persons, other than one described in paragraphs 1 to 7, that satisfies the following conditions:

i. It does not carry on its activities for the purpose of gain or profit to its members or shareholders.

ii. In 2018 (or in such later year as may be specified by regulation) it received at least $1,000,000 in funding from the Government of Ontario, as determined for the purposes of the Public Sector Salary Disclosure Act, 1996.

9. Subject to subsection (2), every other authority, board, commission, committee, corporation, council, foundation or organization that may be prescribed by regulation for the purposes of this section. 2019, c. 12, s. 5 (1); 2021, c. 39, Sched. 2, s. 22.

Exceptions

(2) This Act does not apply to the following employers:

1. A municipality.

2. A local board as defined in subsection 1 (1) of the Municipal Act, 2001.

3. A local board as defined in subsection 3 (1) of the City of Toronto Act, 2006.

4. Every authority, board, commission, corporation, office or organization of persons, a majority of whose members, directors or officers are appointed or chosen by or under the authority of the council of a municipality.

5. An Indigenous community.

6. Every authority, board, commission, corporation, office or organization of persons, including a council of the band within the meaning of the Indian Act (Canada), a majority of whose members, directors or officers are appointed or chosen by or under the authority of one or more Indigenous communities.

7. A police governing authority referred to in section 54 of the Police Services Act.

Note: On the day section 101 of the Community Safety and Policing Act, 2019 comes into force, paragraph 7 of subsection 5 (2) of the Act is repealed and the following substituted: (See: 2019, c. 12, s. 39 (1))

7. A police governing authority referred to in section 101 of the Community Safety and Policing Act, 2019.

Note: On the day section 32 of the Community Safety and Policing Act, 2019 comes into force, subsection 5 (2) of the Act is amended by adding the following paragraph: (See: 2019, c. 12, s. 39 (2))

7.1 A First Nation board constituted under section 32 of the Community Safety and Policing Act, 2019.

Note: On the day section 77 of the Community Safety and Policing Act, 2019 comes into force, subsection 5 (2) of the Act is amended by adding the following paragraph: (See: 2019, c. 12, s. 39 (3))

7.2 A First Nation O.P.P. board constituted under section 77 of the Community Safety and Policing Act, 2019.

8. Unless otherwise specifically provided for in the regulations, an organization that undertakes its activities for the purpose of profit to its shareholders. 2019, c. 12, s. 5 (2).

Definition

(3) In this section,

“Indigenous community” means a band within the meaning of the Indian Act (Canada) and such other entities as may be prescribed by a Minister’s regulation. 2019, c. 12, s. 5 (3).

Section Amendments with date in force (d/m/y)

2019, c. 12, s. 39 (1-3) - not in force

2021, c. 39, Sched. 2, s. 22 - 11/04/2022

Application to employees

6 (1) This Act applies to the employees of the employers to whom this Act applies.

Exceptions

(2) This Act does not apply to such employees or classes of employees as may be specified by a Minister’s regulation.

Same, designated executives

(3) This Act does not apply to designated...

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