Ontario taxpayers have incurred $4.3 million in legal fees after the province lost two court battles over a wage-cap law that was declared unconstitutional, as revealed by The Canadian Press.
In 2019, Premier Doug Ford’s government introduced Bill 124, which capped salary increases for public sector workers at one percent annually for three years. The province justified the bill as a measure to address the budget deficit.
The law angered 800,000 public workers, including nurses, teachers, and other civil servants, who protested vehemently at Queen’s Park. Medical experts and education officials criticized the law for exacerbating staffing shortages in hospitals and schools, particularly during the COVID-19 pandemic.
Unions representing these workers took the matter to court, arguing that Bill 124 was unconstitutional. While the government maintained that the bill did not violate constitutional rights, the Ontario Superior Court struck down the law in 2022, siding with the workers. The province appealed the decision, hiring external legal firm Lenczner Slaght to handle the case.
Earlier this year, the Ontario Court of Appeal ruled 2-1 against the law, confirming it infringed on workers’ Charter rights. The Ford government repealed the law but faced hefty legal costs.
According to the Ministry of the Attorney General, Ontario has paid $3.45 million to settle legal costs with the unions and $856,482 to Lenczner Slaght for services related to the appeal.
Caroline Mulroney’s office defended Bill 124 and its legal defense. Spokeswoman Liz Tuomi stated that the law aimed to protect frontline jobs and ensure fiscal responsibility. Finance Minister Peter Bethlenfalvy, who introduced the bill, said the government still stands by its fiscal policies.
However, opposition leaders criticized the government for wasting taxpayer dollars. Marit Stiles, leader of the Ontario NDP, called the legal costs “wasteful” and argued the Ford government was out of touch with what matters to Ontarians.
Green Party Leader Mike Schreiner and Ontario Liberal Leader Bonnie Crombie also condemned the expense, accusing the government of using public funds to fight unconstitutional legislation that restricted fair wages for essential workers.