Ontario may have to pay $2.7B in retroactive wages to health-care workers if they lose Bill 124 appeal.
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.
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.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.”
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. However, the FAO report says this number could increase significantly if the government is unsuccessful in its appeal of the court decision.
Officials noted that very little information has been provided on this expenditure as the program remains relatively new.covered under the Ontario Health Insurance Plan, including cataract surgeries, MRI and CT scans, and minimally invasive gynecological surgeries.
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