The Public Sector Compensation Restraint to Protect Public Services Act, 2010 establishes restraint measures with respect to the compensation plans of certain public sector employees and office holders.  In particular, it provides that the rate of pay, pay ranges, benefits, perquisites and payments for employees of (a) public sector employers as defined in the Act; and (b) employers who have received at least 1 million dollars in funding from the Government of Ontario in 2009 as determined for the purposes of the Public Sector Salary Disclosure Act, 2006 and do not carry on business for the purpose of business or profit cannot be increased before the beginning of April 2012, except in specified circumstances.

The Act applies to all employees of the employers as designated in the Act other than those employees who are represented by an organization which represents two or more employees for the purposes of collectively bargaining, with their employer, terms and conditions of employment relating to compensation.

The Public Sector Compensation Restraint Board (the PSCRB) is an adjudicative tribunal established under section 14 of the Act.  Employers, employees, office holders and the Minister of Finance may apply to the PSCRB for an order declaring whether the Act applies to an employer, employee or office holder.

The PSCRB cannot make an order relating to a compensation plan.

Given that the Act applies to many entities in the broader public sector (excluding municipalities and local boards of municipalities other than boards of health), determinations will need to be made regarding whether the Act applies to particular employers, and if so, whether all employees of that employer are subject to the restraint provisions.

New Items of Interest

Diane Gee, Chair

Diane Gee, Alternate Chair of the OLRB and Chair of the Pay Equity Hearings Tribunal, has been appointed Chair of the Public Sector Compensation Restraint Board.