Comprehensive Public Sector Compensation Freeze Act, 2013 Shurman, Peter — Bill 5 (40th Parliament, 2nd Session)

Bill 5, 40-2

Ontario — Bills

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Bill 5, Comprehensive Public Sector Compensation Freeze Act, 2013

Shurman, Peter

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Debates

Original

[40] Bill 5 Original (PDF)

Bill 5 2013

Act to freeze compensation for two years in the public sector

Preamble

Since

2003, the rate of annual spending in the Province of Ontario has increased well

in excess of the rate of inflation and population growth, leading to alarmingly

high annual deficits and accumulated debt. Without urgent action to put the

Province on a sustainable path, by the fiscal year 2017-2018 the annual deficit

is projected to grow to a staggering $30.2 billion and accumulated debt to

$411.4 billion.

The

interest alone on that debt will assume an even greater share of the Province's

program spending, which should be focused on core services like health care,

education, infrastructure and justice, not paying interest on debt. In order

for Ontario to compete internationally and attract investment, it is imperative

that the Government get its spending under control, balance the budget and pay

down its mounting debt.

is equally imperative that the Government lead by example. Since 2010, the

present Government has consulted fully with its employees and bargaining agents

representing those employees and solicited their suggestions for achieving ways

to reduce the annual deficit and accumulated debt. The Province's fiscal plans,

as laid out in its budgets and other documents, have repeatedly and publicly

made clear the necessity of reining in the costs of human resource compensation

in the public sector. Those costs account for more than half of all program

spending.

date, according to Ministry of Labour figures, the Province has been unable to

achieve a zero increase in the costs of human resource compensation in the

public sector. For example, the Government introduced Bill 115 on August 27,

2012 to impose a two-year wage freeze on boards, employees of boards and employee

bargaining agents in the education sector, starting, for most employees, on

September 1, 2012. However, Bill 92 ( Comprehensive Public Sector

Compensation Freeze Act, 2012 ) died on the Order Paper when the Assembly

was prorogued on October 15, 2012. As a result, on its current path, the

Province is unlikely to achieve the structural change in spending that is

necessary to balance the budget by the fiscal year 2017-2018.

that end and to better reflect the current ability of the private sector

economy to pay, the Government must impose a comprehensive freeze of at least

two years on all salaries and compensation paid to employees in the public

sector.

Therefore,

Her Majesty, by and with the advice and consent of the Legislative Assembly of

the Province of Ontario, enacts as follows:

Definitions

1. In

this Act,

"compensation"

means all forms of payment, benefits and perquisites paid or provided, directly

or indirectly, to or for the benefit of a person who performs duties and

functions that entitle the person to be paid, and includes discretionary

payments; ("rémunération")

"compensation plan" means the provisions, however established, for the

determination and administration of a person's compensation; ("régime de

rémunération")

"employee", "employer" and "public sector" have the same meaning as in

subsection 2 (1) of the Public Sector Salary Disclosure

Act, 1996 ; ("employ é ", "employeur", "secteur public")

"pay range" means a range of rates of pay; ("échelle salariale")

"rate of pay" means the rate of remuneration or, where no such rate

exists, any fixed or ascertainable amount of remuneration. ("taux de salaire")

Compliance

with this Act

2. Every

employer shall comply with this Act with respect to the employer's employees.

Pay

freeze

(1) The rate of pay for an

employee employed in a position in the public sector shall not be increased

before the second anniversary of the day this Act receives Royal Assent, except

as permitted by subsection (3).

Pay

range

(2) The maximum amount within a pay range, if

any, for an employee employed in a position in the public sector and any steps

within the pay range shall not be increased before the second anniversary of

the day this Act receives Royal Assent.

Increase

in minimum wage

(3) If the rate of pay for an employee

employed in a position in the public sector falls below the minimum wage

established under

Part IX of the Employment Standards Act,

2000 , the rate of pay may be increased to match the minimum wage.

Benefits

freeze

(1) A

benefit, perquisite or payment provided to an employee employed in a position

in the public sector under a compensation plan as it existed on the day this

Act receives Royal Assent shall not be increased before the second anniversary

of that day.

Same,

other benefits

(2) Despite subsection (1), no benefit, perquisite or

payment shall be provided to an employee employed in a position in the public

sector in recognition of any of the following matters relating to the employee,

even if the benefit, perquisite or payment is authorized under the compensation

plan as it existed on the day this Act receives Royal Assent:

1. Length

of time in employment.

2. An

assessment of performance.

3. Successful

completion of a program or course of professional or technical education.

new or additional benefits

(3) No new or additional benefits, perquisites

or payments, as compared to those authorized under a compensation plan as it

existed on the day this Act receives Royal Assent, shall be provided to an

employee employed in a position in the public sector under the compensation

plan before the second anniversary of the day this Act receives Royal Assent.

Overpayment

of compensation

5. Compensation

paid to an employee in the public sector in contravention of

section 3 or 4 is a

debt due to the employer and the employer may recover it by any remedy or other

procedure available to the employer by law, including by setting it off against

compensation owing to the employee that the employer has not yet paid to the

employee.

Conflict

with this Act

(1) This

Act prevails over any provision of a compensation plan and, if there is a

conflict between this Act and a compensation plan, the compensation plan is

inoperative to the extent of the conflict.

Same,

other laws

(2) This Act prevails over any other Act and

over any regulation, by-law or other statutory instrument.

Exception

(3) Nothing in this Act shall be interpreted

or applied so as to reduce any right or entitlement under the Human Rights Code , the Pay Equity

Act or

section

42 or 44 of the Employment Standards Act, 2000 .

Same

(4) Nothing in this Act shall be interpreted

or applied so as to prevent the application of the insurance plan under the Workplace Safety and Insurance Act, 1997 to an individual

to whom the insurance plan did not apply on the day this Act receives Royal

Assent.

Compliance

reports by employer

(1) Every

employer shall give the Minister responsible for the administration of this Act

the reports that are prescribed concerning the employer's compliance with this

Act.

Submission

of reports

(2) Each report must be submitted in the

prescribed form and manner and within the prescribed period.

Contents

of reports

(3) Each report shall include a statement

signed by the employer's highest ranking officer certifying whether the

employer has complied with this Act.

Regulations

8. The

Lieutenant Governor in Council may make regulations,

(

a) governing

how rates of pay, pay ranges and benefits, perquisites and payments provided

under a compensation plan are to be valued;

(

b) specifying

any matter that is described as prescribed in this Act.

Commencement

9. This

Act comes into force on the day it receives Royal Assent.

Short

title

10. The

short title of this Act is the Comprehensive Public Sector Compensation Freeze Act, 2013 .

EXPLANATORY

NOTE

The

Bill freezes the annual compensation of employees in the public sector for a

period of two years.

Date Bill stage Activity Committee

February 28, 2013

Ordered referred to Standing Committee

Standing Committee on the Legislative Assembly

February 28, 2013

Second Reading

Carried on division

February 28, 2013

Second Reading

Debate

February 25, 2013

First Reading

Carried

Debates and Progress

First Reading

February 25, 2013

Committee

Second Reading

February 28, 2013

Mr. Peter Shurman, Ms. Sarah Campbell, Mr. Mike Colle, Mr. Monte McNaughton, Ms. Teresa J. Armstrong, Hon. David Zimmer, Mr. Jeff Yurek, Ms. Cheri DiNovo, Mr. John O’Toole

February 28, 2013

February 28, 2013

Carried on recorded division. Referred to the Standing Committee on Legislative Assembly.

Committee

Standing Committee on Legislative Assembly

Third Reading

Royal Assent

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Document details

Collection	Ontario — Bills
Citation	Bill 5, 40-2
Type	bill
Volume / chapter	p40 s2 bill 5 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	a8e13d9e4fca4ea30ad492b1f2564d612058ecd6

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