Compensation costs are the largest single expense for government. Currently, 55 per cent — or more than $50 billion — of all government program expense goes to compensation, either directly or through transfers.

The Plan Results

To reduce the size of the Ontario Public Service (OPS) by five per cent by March 31, 2012 through attrition and other measures.

  • The size of the OPS has been frozen at 68,645 full-time equivalent staff.
  • The federal government has agreed to make comparable job offers to all OPS employees affected by the move to the Harmonized Sales Tax (HST), reducing the number of OPS positions by 1,253.
  • Federal administration of the HST will save the province approximately $100 million annually in compensation and overhead by 2014–15.

To extend the existing freeze of MPP salaries for a total of three years.

To freeze compensation structures in the broader public sector (excluding municipalities) and the OPS for two years for all non-bargaining employees.

No funding for incremental compensation increases for the first two years of any future collective agreements.
  • Help redirect approximately $2 billion toward sustaining public services over two years.
  • Provincial public-sector settlement trends have fallen since the 2010 Budget to below the averages in the private and municipal sectors.