Ontario Appeal Court rules against wage-cap law, backing workers' right to collective bargaining
The Ontario Court of Appeal has declared the province's wage-cap legislation, referred to as Bill 124 and introduced by Premier Doug Ford's administration, unconstitutional.
According to The Canadian Press, this ruling affirms a prior judgment by the Ontario Superior Court, which found that the legislation infringed upon rights to 'free association' that encompass collective bargaining.
The appeal court's decision, a split 2-1 ruling, was met with celebration by unions and opposition leaders, viewing it as a significant win for workers and a substantial defeat for Premier Ford. The Ford government, however, retains the option to seek further appeal at the Supreme Court of Canada.
Bill 124, enacted in 2019 by Ontario’s Progressive Conservative government, aimed to cap all public sector compensation increases at one percent for three years. Despite the challenges of the pandemic, the government did not ease these restrictions, although it provided additional compensation for personal support workers and retention bonuses for nurses.
Critics argue that the wage limits exacerbated staffing shortages, particularly affecting Ontario’s healthcare system.
A coalition of unions challenged Bill 124 in court, leading to a November 2022 ruling by Ontario Superior Court Justice Markus Koehnen.
Justice Koehnen concluded that the legislation violated the Charter of Rights and Freedoms by “effectively denying unions the right to bargain collectively.” The government's appeal of this decision led to the recent judgment by the Ontario Court of Appeal.
The appeal court upheld the lower court's findings but specified that the bill was unconstitutional solely in its application to unionized workers, as it left non-union employees unaffected due to their lack of collective bargaining rights.
Justice Lise Favreau, writing for the majority, stated, “I am satisfied that the Act substantially interferes with the respondents’ right to participate in good faith negotiation and consultation over their working conditions.”
The ruling underscored the failure of Bill 124 to facilitate substantive collective bargaining or engage in a meaningful consultation process prior to its enactment.
Despite the government's defense that the legislation was crucial for fiscal management and averting a financial crisis, the appeal court concurred with the lower court that the wage-cap was a “disproportionate response” and unjustifiable.
However, the appeal ruling also noted that the lower court judge did not fully acknowledge the government's policy objectives, particularly in relation to tax and license-plate sticker fee cuts, suggesting a lack of “sufficient deference to the legislature’s policy objectives.”
In dissent, Justice William Hourigan argued against the majority's decision, asserting that the court was overstepping by challenging government policy decisions. He contended that the majority's ruling was based on “legal errors and palpable and overriding factual errors,” and maintained that Bill 124 did not violate the Charter's right to free association.
The ruling has been hailed as a "victory for workers across Ontario" by Ontario NDP Leader Marit Stiles and echoed by Liberal Leader Bonnie Crombie and Green Party leader Mike Schreiner, all calling for the government to repeal the bill.
The decision was also praised by leaders from the healthcare and education sectors, urging an end to wage-restraint policies.
In response to the ruling, unions and opposition leaders have emphasized the need for the Ford government to respect workers' rights and the democratic process of bargaining.
“Let the Court’s ruling be a lesson for the Ford government to never circumvent bargaining or trample on workers’ democratic rights again,” stated Karen Brown, president of the Elementary Teachers’ Federation of Ontario.
