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Ontario Freezes Wages In Provincial Budget

Finance Minister Dwight Duncan during a press conference on October 21, 2009. CITYNEWS.

Facing a record $21.3 billion dollar deficit, Ontario’s government is freezing salaries on more than one million public sector employees.

Finance minister Dwight Duncan delivered the provincial budget Thursday, announcing the Liberals plan to freeze salaries on elected politicians for two years, then expand it to non-unionized public sector employees.

Duncan said the government won’t re-open contract with unionized employees, but is giving notice that there will be no raises for two years after the current contracts expires.

The government predicts these measures will bring a savings of $750 million. They’re planning on spending on spending $115.9 billion on programs this year, which means a deficit of $19.7 billion.

Duncan says it will take eight years to get Ontario out of debt.