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
BREAKING Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
Most of Canada to receive emergency alert test today
The federal government will test its capacity to issue emergency alerts today, with the exception of Ontario, where the test will take place on May 15.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests about relationship with Prince Harry
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
Seafood, eat food: Calgary Stampede releases Midway menu
The Calgary Stampede has released its menu of sweet, salty and spicy treats available on the Midway for the Greatest Outdoor Show on Earth.
Ontario man devastated to learn $150,000 line of credit isn't insured after wife dies
An Ontario man found out that a line of credit he thought was insured actually isn't after his wife of 50 years died.
Boy Scouts of America is rebranding. Here's why they've changed their name
After more than a century, Boy Scouts of America is rebranding as Scouting America, another major shakeup for an organization that once proudly resisted change.
Trial begins for Winnipeg serial killer who claims he was mentally ill
The trial of a man who admits he killed four women in Winnipeg is set to begin Wednesday, and a law professor says lawyers for Jeremy Skibicki have multiple hurdles to clear for a defence of mental illness.
These adults born in the '90s partnered with their parents to buy homes in Ontario
An Ontario woman said it would have been impossible to buy a house without her mother – an anecdote that animates the fact that over 17 per cent of Canadian homeowners born in the ‘90s own their property with their parents, according to a new report.
New Canadian study could be a lifesaver for thousands suffering from CTE
A first-of-its-kind Canadian research study is working towards a major medical breakthrough for a brain disorder, believed to be caused by repeated head injuries, that can only be detected after death.