Tuesday, March 27, 2012

Ontario budget 2012: Public servants hit with wage freeze

Ontario will freeze wages for 1.2 million public servants in an austerity budget that could trigger an election as early as May.  In a major policy shift, Premier Dalton McGuinty’s minority Liberal government used Tuesday’s Ontario budget to warn the two-year salary edict would be legislated if necessary. But with the Progressive Conservatives threatening to defeat the budget and the New Democrats on the fence, Ontario could be plunged into another election just six months after the Oct. 6 vote. Against that backdrop of brinksmanship, Finance Minister Dwight Duncan said teachers, doctors, nurses, hospital workers and others on the public payroll will just have to make do as the province struggles with a deficit next year of $15.2 billion. “If Ontario does not take strong action, the deficit will grow, which would mean unsustainable levels of debt,” Duncan said as he tabled the record $126.4 billion spending plan. (more)

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