Ontario government to cap public sector wage increases

Ontario has introduced legislation to cap broader public sector wage increases to an average of one per cent a year for three years.

That includes teachers, and staff at post-secondary institutions and hospitals.

Treasury Board President Peter Bethlenfalvy says the bill would ensure that increases in public sector compensation ``reflect the fiscal situation of the province.''

The Progressive Conservative government is attempting to eliminate an $11.7 billion deficit.

Ontario recently started the bargaining process with the largest teachers' unions.

More than one million broader public sector employees will be affected by the legislation.