Ontario may have to pay $2.7B in retroactive wages if they lose Bill 124 appeal
Ontario has allocated $4.4 billion more than what is needed to fund the provincial health-care system, according to the Financial Accountability Office (FAO), but if the province loses its appeal of Bill 124, it could be paying back more than half of that to workers in the public sector.
In a review of expenditures for the next three years, the FAO says the excess funds are due to the province’s decision to add $15.2 billion in funding to the health sector in the 2023 budget.
It also represents “a significant change” from the office’s previous estimate of a $10 billion shortfall over the same period.
The FAO says the majority of the additional $15.2 billion is being used to address funding gaps for existing programs and new commitments.
About $900 million is being used to pay for retroactive wage increases awarded to some health-sector workers while another $500 million is needed to fund new program changes.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
The FAO says the $4.4 billion in unallocated funds could be used to introduce new programs, enhance existing programs or address other spending pressures, “such as higher than expected wage settlements.”
“Alternatively, if the Province decides not to use the $4.4 billion in excess funds, then these funds would be applied to improve the budget balance and reduce the Province’s net debt,” the report notes.
However, the office warns that health-sector spending could be influenced by “above-historical increases to health sector wages” and the ongoing legal challenge of Bill 124.
The legislation, which went into effect in 2019, capped wage increases for those in public service to one per cent a year for three years. At the time, the government said the bill was a time-limited approach to eliminating the deficit.
In November 2022, Justice Markus Koehnen found the bill infringed on the workers’ rights to freedom of association and collective bargaining.
The provincial government is appealing the decision, and the court case is expected to be heard in mid-June.
Arbitrators have awarded Ontario nurses with retroactive pay increases despite the province’s appeal of Bill 124. They have already been awarded an additional 0.75 per cent wage increase for 2020 with an additional one per cent the following year and two per cent in the final year. This has been covered in the provincial spending plans.
However, the FAO report says this number could increase significantly if the government is unsuccessful in its appeal of the court decision.
In that case, officials say hospital spending would go up by an additional $2.7 billion from 2022-23 to 2027-28.
PRIVATE FACILITES GETTING MORE HEALTH DOLLARS
The report also found that up to $62 million is being allocated to so-called independent health facilities in 2023-24. This represents more than a 106 per cent increase over the last year and is “largely due to the province’s plan to expand the number of surgeries performed at community surgical and diagnostic centres,” the report said.
The FAO says that about $200 million—taken from the $500 million set aside for new programs—is being allocated for these facilities.
Officials noted that very little information has been provided on this expenditure as the program remains relatively new.
Private clinics are now being allowed to conduct more procedures covered under the Ontario Health Insurance Plan, including cataract surgeries, MRI and CT scans, and minimally invasive gynecological surgeries.
The Ontario Health Coalition, which advocates for publicly-funded health care while representing more than 500 member organizations and individuals, has heavily criticized the new legislation and argued it will promote “manipulative upselling.”
An informal referendum, conducted by the coalition, showed that the majority of people who participated were against the privatization of hospital services.
When asked if they wanted “public hospital services to be privatized to for-profit hospitals and clinics,” 99 per cent of the more than 386,000 respondents said no.
The Ontario government has said repeatedly said no patient will pay for OHIP-covered services with their credit cards, regardless of where they have a procedure done.
They will also be designating “expert organizations” to work with Ontario Health and the Ministry of Health to ensure quality and safety standards at all clinics.
CTVNews.ca Top Stories
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Saskatchewan isn't remitting the carbon tax on home heating. Why isn't my province following suit?
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Caleb Williams goes to the Bears with the No. 1 overall pick in the NFL draft
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.
Body of Quebec man who died in Cuba found in Russia, family confirms
A Montreal-area family confirmed to CTV News that the body of their loved one who died while on vacation in Cuba is being repatriated to Canada after it was mistakenly sent to Russia.