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The Ford government plans to appeal an Ontario court ruling that blocked a law that limits wage increases for public sector workers, better known as Bill 124.
A spokesman for Attorney General Doug Downey told CBC News the province is reviewing the decision and intends to appeal.
A ruling released Tuesday from the Superior Court of Justice said the Protecting a Sustainable Public Sector for Future Generations Act violated the Charter of Rights and Freedoms. You can see the full decision at the bottom of this story.
The law, the decision said, “is not a reasonable limitation on a right that can be shown to be reasonable in a free and democratic society under s.1 of the charter.”
Groups representing several hundred thousand public sector employees have challenged the constitutionality of 2019 legislation that caps wage increases for Ontario Public Service employees as well as the broader public sector workforce at one percent every year.
Justice Markus Koehnen said the law violated the applicants’ rights to freedom of association and collective bargaining, in what he called “substantial interference.”
As part of the decision, Koehnen said Ontario did not explain why constitutional rights must be violated to impose wage restrictions while at the same time providing tax breaks or license plate sticker refunds more at 10 times greater than the savings from wage- prevention measures.
However, he said he is bound by Supreme Court of Canada decisions that guarantee a constitutional right to collective bargaining.
As a result, the act is “null and void,” Koehnen said.
The judge also said Ontario is free to take the position in collective bargaining that it cannot pay more than one per cent in wage increases. Instead, Ontario appears reluctant to take that position because it could lead to strikes, the decision said.
“As noted, the right to strike is constitutionally protected,” Koehnen wrote. “Although inconvenient, the right to strike is part of a free and democratic society.”
Don’t appeal the decision, the provincial groups say
The Ontario Secondary School Teachers’ Federation (OSTTF), one of the applicants in the case, tweeted that it was pleased with the decision.
“This decision affirms workers’ rights to free and fair bargaining,” the OSSTF tweeted. Teachers are currently negotiating new contracts with the government and OSSTF president Karen Littlewood said she hopes this round will see free and fair collective bargaining.
The Elementary Teachers’ Federation of Ontario also tweeted in support of the decision.
The Ontario Federation of Labor (OFL) tweeted a graphic reading: “Victory.” Steven Barrett, a lawyer for OFL and wider public sector workers, said the decision was a “complete vindication” for unions.
The Ontario Nurses’ Association tweeted in reaction to the news, “Nurses demand that the government respect the court’s decision.” The group added that it is looking to reopen contracts affected by Bill 124.
BREAKING: Ontario Superior Court of Justice strikes down Bill 124#OnLab #OnPoli pic.twitter.com/r6VdRdzORC
In a statement following the decision, NDP Leader Peter Tabuns said, “My message to Ford is simple: do not appeal this decision.”
Tabuns called the decision a “victory,” and said the action caused “unspeakable damage to our vital public service.”
Liberal interim Leader John Fraser also said in a statement, “Doug Ford must accept the court’s decision.”
Fraser added that news of the decision came the same day the Office of Fiscal Accountability announced that the province underspent about $859 million on health last year.
Green Party Leader Mike Schreiner called on the Ford government not to “waste any taxpayer money” on the law and promised not to appeal the decision.
“It’s time to consign Bill 124 to the dustbin of history and start investing in the people who care about us every day,” Schreiner said.
Overturning the law could cost $8.4B over 5 years: FAO
Unions representing government workers, teachers, nurses and university faculty members argued the law eliminated meaningful collective bargaining, thereby violating the Canadian Charter of Rights and Freedoms. The province argued that the law does not violate constitutional rights.
The bill’s provisions will come into effect for three years while new contracts are negotiated, and the Tories say it is a time-limited approach to help eliminate the shortage.
The case was heard for two weeks in September.
The court heard the law affected more than 700,000 workers in the province. It does not apply to municipalities, First Nations and indigenous communities, and for-profit companies.
In September, the Office of Fiscal Accountability said Bill 124 would save the province $9.7 billion in public sector salaries and wages. But if the law is repealed and repealed, it could cost the province $8.4 billion over five years, including a potential $2.1 billion in retroactive payments to most workers already affected by it, the FAO said.
Health care workers have long called for Bill 124 to be repealed. They also say it has contributed to health care crises in Ontario, which has seen nurses and personal support workers recently leave the profession in droves.
The province argued that it was under dire financial straits when it implemented the new law.
The judge disagreed.
“In my view of the evidence, Ontario does not face a situation in 2019 that justifies a violation of charter rights,” Koehnen said.
“In addition, unlike other cases that have enacted wage restraint legislation, Bill 124 sets the wage cap at a rate lower than what employees obtain in free collective bargaining negotiations.”
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