Bill 124 Legislation

Applies to not-for-profit organizations that received at least $1 million in Ontario government funding in the fiscal year 2018-2019 (received by Queen’s University). It applies to both unionized and non-unionized employees.

It sets a 3-year moderation period during which there is a wage restraint or cap each year.

Increases to compensation are limited to a total of 1% (or less; below the rate of inflation) in each of the 3 moderation years. This also includes benefits and one-time payments.

Which Local Unions have been Impacted by Bill 124 at Queen’s:

Who is not Impacted by Bill 124 at Queen’s?

Bill 124 does not apply to “designated executives within the meaning of the Broader Public Sector Executive Compensation Act, 2014”.  Essentially, it applies to employees only, not employers (management).

For personnel at Queen’s this means it does not apply to:

• Senior Leadership,
• Salary Grades 10-14, or,
• Grades 8-9 who are excluded from a bargaining unit because they are “deemed a Manager”.

Queen’s however, adopted a “same as you” or “parity” policy and paid the personnel noted above in accordance with Bill 124 parameters; essentially 1% per year for 3 years the same as Steelworkers.

Our Bargaining Rights:

For unionized employees, the moderation period begins automatically from the first day of the first Collective Agreement negotiated after June 5, 2019.

During the moderation period, Collective Bargaining is also limited, as Bill 124 restricts our right to bargain both wages and new entitlements.

The Ford government made it very challenging for Steelworkers (Academic Assistants in 2020 and Support Staff in 2022) to bargain, as they have prevented us from freely negotiating with Queen’s.

USW and other unions (Coalition of Ontario Unions) put forward a legal challenge to this legislation.

In November 2022 the Ontario Superior Court of Justice declared Bill 124 (Protecting a Sustainable Public Sector for Future Generations Act, 2019) to be unconstitutional and deferred the specific remedy to a later hearing.

To date, the Employer continues to rely on Bill 124 to limit your Cost of Living/Scale Increase percentages to 1% for those contracts already in place.

Enforcement:

Bill 124 also prohibits employers from providing increases to salary or compensation before or after the 3-year moderation period to make up for amounts that would otherwise have been paid during the moderation period (“anti-avoidance measures”).

Significant compliance powers to Ontario Treasury Board (penalties/sanctions against employers).

The Minister of Labour can order the cancellation of Collective Agreements or Arbitration Awards/Rulings inconsistent with Bill 124.

No meaningful change to Provincial Budget:

Provincial funding is allocated on a per-student basis, not wages of employees.  On average, provincial funding represents only one-third (⅓) of university revenue in Ontario.

Wage increases in university sector will have negligible impact on provincial deficit, both pre-and-post pandemic.

Ontario Superior Court of Justice Decision:

USW and other unions (Coalition of Ontario Unions) put forward a legal challenge to this legislation.

In November 2022 the Ontario Superior Court of Justice declared Bill 124 (Protecting a Sustainable Public Sector for Future Generations Act, 2019) to be unconstitutional and deferred the specific remedy to a later hearing.

The Ontario Federation of Labour (OFL) has also circulated summary of the decision that explains further.

To date, the Employer continues to rely on Bill 124 to limit your Cost of Living/Scale Increase percentages to 1% for those contracts already in place.