July 20th – Today, public service employers and labour leaders were brought together to begin a discussion about managing responsibly through upcoming compensation negotiations. The McGuinty government is working with its partners to manage compensation expenses in order to protect key public services Ontarians rely on, such as health care and our schools.
The 2010 Budget outlined the Ontario government's plan for reducing and eliminating the deficit over eight years. Managing compensation costs is a key part of that plan. Compensation represents the single largest expenditure of the Ontario government.
The government will respect all current collective agreements, but when these agreements expire and new contracts are negotiated, transfer payment partners and bargaining agents are expected to seek agreements lasting at least two years with no net increase in compensation.
The government is also asking its partners to agree to pause ongoing labour negotiations and interest arbitrations, in order to allow more detailed consultations on compensation.