Ontario's Unfinished Fight: Low-Paid Workers Await Bill 124 Justice

TORONTO, ON – January 20, 2026 – Tensions are escalating between Ontario's largest labour unions and the provincial government over the unresolved fallout from the now-defunct Bill 124. Major labour leaders are set to publicly demand that the Ford government provide long-overdue wage remedies to tens of thousands of the public sector's lowest-paid workers, threatening further legal action if a resolution is not reached.

The Ontario Federation of Labour (OFL), joined by the Canadian Union of Public Employees (CUPE) Ontario and the Ontario Public Service Employees Union (OPSEU/SEFPO), will hold a press conference at Queen’s Park on Wednesday. They will argue that the government is dragging its feet, creating a two-tiered system where some public sector employees have received compensation while others, particularly those in community and social services, are left behind.

The Lingering Shadow of Bill 124

The dispute stems from Bill 124, the "Protecting a Sustainable Public Sector for Future Generations Act," which was enacted by the Ford government in 2019. The legislation imposed a strict one percent annual cap on wage increases for a three-year period for roughly 800,000 public sector workers. The government argued the cap was a necessary measure for fiscal prudence.

However, the bill was met with fierce opposition from unions, who argued it was an unconstitutional attack on collective bargaining rights. The wage cap fell far below the rate of inflation, effectively resulting in a pay cut for frontline workers in healthcare, education, and social services. Critics widely blamed the legislation for exacerbating staffing shortages, particularly in the nursing profession, during a critical period for the province's public services.

A coalition of unions challenged the law in court, leading to a landmark ruling in November 2022 when the Ontario Superior Court of Justice declared Bill 124 unconstitutional. The government appealed the decision, but in February 2024, the Ontario Court of Appeal largely upheld the lower court's finding, stating the bill unjustifiably infringed on the Charter rights of unionized workers. Following this defeat, the government announced it would not pursue a further appeal to the Supreme Court of Canada and officially repealed the bill on February 23, 2024.

A Tale of Two Workforces

The repeal of Bill 124 was supposed to pave the way for retroactive wage settlements for all affected workers. While many have since received their compensation, a significant number have not, creating what unions describe as a deeply unfair situation.

Many unions with "reopener clauses" in their collective agreements were able to quickly enter into negotiations or arbitration. For instance, hospital nurses represented by the Ontario Nurses' Association secured significant retroactive increases. College faculty received a 9.5% raise over three years, and many provincial government employees saw similar adjustments. Arbitrators also awarded education workers substantial pay bumps to make up for the suppressed wages under the bill.

Yet, a different reality exists for workers in sectors like community health, developmental services, and children's aid societies. According to CUPE Ontario and OPSEU/SEFPO, over 50,000 of their members in these fields are still waiting for their remedies. These unions often represent workers whose contracts lacked reopener clauses, complicating the path to compensation and forcing them to consider further legal action.

"These are some of the lowest-paid workers in the public sector," the OFL stated in its advisory. The unions argue that these employees, many of whom are women and racialized workers, are being unfairly penalized, despite the courts finding that Bill 124 had a disproportionately negative impact on them. The upcoming press conference will feature Candice Callender, an OPSEU/SEFPO member from Central West Specialized Developmental Services, who will give a firsthand account of the delay's impact.

The Taxpayer's Mounting Bill

The government's handling of the Bill 124 fallout carries significant financial implications for Ontario taxpayers. The unions' central argument is that settling with the remaining workers now would be far more fiscally responsible than engaging in prolonged and costly legal battles.

Records show taxpayers footed a $4.3 million bill for the government's failed legal defense of the bill, which included payments to outside law firms and reimbursement for the unions' legal costs. Labour leaders will argue on Wednesday that forcing the remaining unresolved cases back to court would only add to this "wasted" taxpayer money.

The total cost of the remedies is substantial. In February 2024, the Financial Accountability Office of Ontario (FAO) projected that the total cost of addressing the wage suppression under Bill 124 could reach approximately $13.7 billion through the 2027-28 fiscal year. While the government has already accounted for a significant portion of this liability, the ongoing delays create fiscal uncertainty and prolong the final tally. The unions contend that a prompt and fair resolution is not only a matter of justice for workers but also a matter of sound financial management for the province.

A Political Standoff at Queen's Park

Wednesday's press conference marks a significant political escalation in the ongoing saga. The united front presented by OFL President Laura Walton, OPSEU/SEFPO President JP Hornick, and CUPE Ontario President Fred Hahn signals that the province's largest labour bodies are prepared for a major confrontation.

After the Court of Appeal loss, Premier Doug Ford acknowledged that "times have changed" and that workers "do deserve more," promising to address the inequalities created by the court's decision. The government committed to resolving the issue and repealing the bill. However, the unions' latest action suggests that, in their view, those promises have not been fully met.

By putting a public face on the issue—with a frontline worker speaking alongside the powerful union presidents—the labour movement is aiming to increase public and political pressure on the government. Their message is clear: the fight over Bill 124 is not over until every affected worker has received their due compensation. The government now faces a choice between negotiating a final resolution or bracing for another round of legal and political battles over a law that has already been defeated in court.