Bill 113 2013

An Act to promote fairness in all compensation paid to employees in the public sector as compared to the private sector and to address Ontario's debt through alternatives to public sector layoffs and government program cuts while reducing the fiscal pressure on the people of Ontario who are having trouble paying their bills

Preamble

Since 2003, the annual deficit of the Province of Ontario has increased alarmingly and is projected to be $30.2 billion by 2017-2018. Accumulated debt of the Province is projected to be $411.4 billion by 2017-2018. The need to service this debt severely impairs the ability of the Province to function and has led to increased levels of taxation that seriously impair the ability of businesses in Ontario to compete economically and of individuals to survive financially.

It is vital that the Province get its finances in order, otherwise there will be no alternative but to cut government programs significantly, which will inevitably lead to layoffs in the public sector and a lower level of Government service to the people of Ontario. To avoid those extreme and harsh solutions, the Government of Ontario needs to act immediately to limit increases in compensation paid to employees in the public sector, while recognizing its legal duty to consult fully with those employees and the bargaining agents representing them and to negotiate with them constructively and in good faith.

To achieve that goal, it is appropriate that arbitrators or boards of arbitration that make decisions or awards settling all or part of a collective agreement for public sector employees have access to and consider information that includes comparisons between the terms and conditions of employment of public sector employees and those of private sector employees.

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,

"collective agreement" means an agreement between an employer and a bargaining agent representing employees containing provisions respecting terms or conditions of employment or the rights, privileges or duties of the employer or the employees; ("convention collective")

"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")

"private sector" means all of the employers who are not in the public sector; ("secteur privé")

"public sector" has the same meaning as in subsection 2 (1) of the Public Sector Salary Disclosure Act, 1996; ("secteur public")

"public sector employee" means an employee as defined in subsection 2 (1) of the Public Sector Salary Disclosure Act, 1996; ("employé du secteur public")

"public sector employer" means an employer as defined in subsection 2 (1) of the Public Sector Salary Disclosure Act, 1996. ("employeur du secteur public")

Duties when bargaining in the public sector

   2.  (1)  Every public sector employer shall consult fully with the bargaining agents representing employees of the employer when bargaining for a collective agreement but also take into account the importance of ensuring the good fiscal health of the employer.

Same, no collective agreement

   (2)  Every public sector employer shall consult fully with the employees of the employer who are not represented by a bargaining agent when bargaining for an agreement that sets the compensation of the employees but also take into account the importance of ensuring the good fiscal health of the employer.

Comprehensive Pay Fairness Division

   3.  (1)  The Minister of Finance shall establish a division within the Ministry, to be known in English as the Comprehensive Pay Fairness Division and in French as Division de l'équité salariale compréhensive.

Existing resources only

   (2)  The budget and staff of the Comprehensive Pay Fairness Division shall be drawn only from the resources allocated to the Ministry of Finance on or before the day this Act comes into force.

Collection of information

   4.  (1)  The Minister of Finance may request that a public sector employer or a private sector employer provide the Comprehensive Pay Fairness Division with the information about the terms and conditions of employment, including compensation, of the employees of the employer that the Minister considers relevant to the duties of the Division under this Act and the employer shall comply with the request.

Arbitrators to file information

   (2)  If an arbitrator makes a decision or award settling all or part of a collective agreement for public sector employees or private sector employees, the arbitrator shall, as soon as possible, file a copy of the decision or award with the Comprehensive Pay Fairness Division.

Use of Government information

   (3)  Any member of the Executive Council who has collected information about the terms and conditions of employment, including compensation, of the employees of an employer may transmit the information to the Comprehensive Pay Fairness Division, which may use it to perform its duties under this Act.

Duties of Comprehensive Pay Fairness Division

   5.  (1)  The Comprehensive Pay Fairness Division shall collect and publish information relating to the settling of all or part of the compensation paid to public sector employees.

Specific publications

   (2)  Without limiting the effect of subsection (1), the Comprehensive Pay Fairness Division shall publish the following:

    1.  National, provincial and local unemployment rates, economic growth rates and personal income levels.

    2.  For public sector employees and private sector employees, comparisons of the terms and conditions of employment, including compensation.

    3.  Information on the following matters with respect to the Province of Ontario:

            i.  Projected budget surplus or deficit.

           ii.  Revenue and expenditures.

          iii.  Growth or decline of the tax base.

          iv.  Net debt and borrowing costs.

    4.  Information on recent arbitration decisions or awards settling all or part of collective agreements for public sector employees and private sector employees in Ontario or elsewhere in Canada.

    5.  Information on collective agreements for public sector employees and private sector employees in Ontario or elsewhere in Canada.

Arbitrations to consider publications

   6.  In making a decision or award settling all or part of a collective agreement for public sector employees, an arbitrator or a board of arbitration shall consider the information that the Comprehensive Pay Fairness Division publishes under section 5.

Commencement

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

Short title

   8.  The short title of this Act is the Comprehensive Pay Fairness Act, 2013.

 

EXPLANATORY NOTE

The Bill enacts a new Act to establish a division within the Ministry of Finance to be known in English as the Comprehensive Pay Fairness Division and in French as Division de l'équité salariale globale. The Division is required to collect and publish information relating to the settling of all or part of the compensation paid to public sector employees. The information is to include comparisons between the terms and conditions of employment of public sector employees and those of private sector employees. For that purpose, the Minister of Finance is authorized to collect information about the terms and conditions of employment, including compensation, of both public sector employees and private sector employees. In making a decision or award settling all or part of a collective agreement for public sector employees, an arbitrator or a board of arbitration is required to consider the information that the Division publishes.