We are trying to determine what limitations (regarding Bill 124) if any, exist in a particular situation we are working through.
We are implementing a new Non-union position which has a portfolio/structure that has not existed in our organization before. Components of the job have existed, but not one position responsible for tackling all areas. The moderation period for Non-union begins January 1 2022. We are wanting to know if we are limited in some way in the compensation that we can provide, even though it is a brand new position. The incumbent to the position also recently completed a course.
We haven’t been able to find a clear answer when a newly created position is formed if we are still limited in some way.
Hoping you can help!
Thanks in advance!
That’s a tough one. I’m far from an expert on Bill 124, but for what it’s worth, I think that limitations WOULD apply to new non-represented employees. Specifically, Section 19 says that the 1% cap applies to “NEW COMPENSATION ENTITLEMENTS” based on 12-month averages. Here’s the language:
“19 (1) During the applicable moderation period, no employer may provide to non-represented employees any incremental
increases to existing compensation entitlements or for new compensation entitlements that in total equal more than one per cent
on average for non-represented employees employed by the employer for each 12-month period of the moderation period.
(2) For greater certainty, an increase in a salary rate under subsection 18 (1) is an increase to compensation entitlements for
the purposes of subsection (1).”
Unfortunately, there’s nothing in Regulations to amplify Section 19. Nor could I find any MOL guidance on the section.