Ontario has officially repealed Bill 124, a public sector wage-restraint law, after it was twice found unconstitutional by the province’s top court. The law, which capped salary increases for broader public sector workers at one per cent a year for three years, was ruled to have violated collective bargaining rights.
Following the recent ruling by the Ontario Court of Appeal, the government swiftly announced the repeal of Bill 124, responding to long-standing calls from opposition critics, labour advocates, and health-care workers.
The Progressive Conservatives initially introduced Bill 124 in 2019 as part of efforts to address the province’s deficit. However, the law, which affected workers including teachers and nurses, faced criticism for its impact on pay during the COVID-19 pandemic, with concerns raised about its role in exacerbating a health-care staffing crisis.
The repeal of Bill 124 signifies a significant move by the Ontario government to address the concerns surrounding wage restraint and collective bargaining rights, particularly within the context of ongoing challenges in the health-care sector.