The provincial government has approved legislation to cap public sector wage increases.
The new law limits hikes to one per cent a year for the next three years.
Treasury Board President Peter Bethlenfalvy says the approved legislation enables the government to manage public sector compensation growth in a fair and reasonable way.
He says the approach protects public sector jobs, respects the collective bargaining process and does not impose wage freezes or wage rollbacks.
Bethlenfalvy adds workers will still be able to receive salary increases for seniority, performance or increased qualifications.
The move is aimed at eliminating the deficit.
Ontario teachers are among those impacted and they say they are prepared to challenge the government in court.
