Ontario Court Of Appeal Ruled Bill 124 Unconstitutional – Ontario English Catholic Teachers’ Association v. Ontario (Attorney General)

In 2019, the Ontario legislature passed Bill 124, the Protecting a Sustainable Public Sector for Future Generations Act (“Bill 124”), which imposed a 1% cap per year on increases to salary rates and compensation for three years for employees in the broader public sector and was introduced by the Ontario government as a measure to control public sector costs and promote fiscal sustainability.

In response, ten organizations that represent employees in the broader public sector brought applications challenging the constitutionality of Bill 124. They specifically invoked sections 2(b) and 2(d) of the Charter, which protect freedom of expression and freedom of association, respectively, and argued that the legislation interfered with their ability to collectively bargain and advocate for their members.

The application judge granted the applications, finding that the Act violated the respondents’ freedom of association and that this violation was not saved by s. 1 of the Charter. The application judge did not accept the arguments that the Act violated the respondents’ s. 2(b) freedom of expression rights or their s. 15 equality rights.

Ontario appealed on the basis that the application judge’s decision is contrary to decisions of the Supreme Court, the Ontario Court of Appeal and other appellate courts that have found similar wage restraint legislation to be constitutional. Ontario also argued that the application judge erred in his analysis of s. 2(d) by essentially turning the right to freedom of association, which the Supreme Court has said is a procedural right, into a substantive right. Ontario further argued that the application judge erred in his analysis and application of s. 1 of the Charter by failing to sufficiently defer to its policy choices in the face of a pressing need to address the deficit through control of public sector wages and compensation.

The Court of Appeal dismissed the appeal, holding that the legislation did indeed violate public sector workers’ Charter rights. The Court emphasized the importance of freedom of association and collective bargaining as fundamental rights in a democratic society, particularly in the context of labour relations. The Court found that the government had not sufficiently justified the infringement of these rights and that the legislation went too far in limiting the ability of teachers’ unions to represent their members effectively.

The decision of the Ontario Court of Appeal affirmed the protections extended to the collective bargaining rights for workers, and underscored the role of the judiciary in upholding constitutional rights against government actions that may infringe upon them. It also had broader implications for labour relations and the balance of power between governments and unions in the public sector.