Ontario to cap public sector wage increases

Ontario's government has introduced legislation to cap public sector wage increases at an average of one per cent annually for the next three years.

The legislation, called the Protecting a Sustainable Public Sector for Future Generations Act, was tabled by the majority Progressive Conservatives on Wednesday afternoon.

The new wage cap would include teachers and staff at post-secondary institutions and hospitals. It will affect both unionized and non-unionized workers.

"This is really good news for our public sector workers, because we are protecting jobs today," said MPP Peter Bethlenfalvy, president of the Treasury Board. "If we did not take this action, thousands of jobs could be at risk."

If passed, the bill will "ensure that increases in public sector compensation reflect the fiscal situation of the province," he told the legislature earlier Wednesday.

The PCs expect to launch a website and host consultations about the plan over the summer.

The legislation comes after the government hinted at the possibility of a wage freeze earlier this spring.