Ontario public sector execs could see compensation cap

But austerity won’t attract the best, brightest: Experts
By Liz Bernier
|Canadian HR Reporter|Last Updated: 01/28/2014

It’s certainly not the first time Ontario’s public sector compensation has become a hot-button political issue. (It won’t be the last time, either). But soaring salaries for the province’s top-level executives have dominated headlines, political debate and water-cooler chatter in recent months.

In November, Ontario NDP leader Andrea Horwath introduced a proposal to cap public sector executives’ salaries at $418,000 — twice the premier’s annual salary. The bill failed, but Ontario’s ruling minority Liberal government has vowed to present its own wage restraint legislation this spring.

But imposing arbitrary hard caps on public sector salaries may not be the best solution, according to Hugh Mackenzie, economic consultant at Hugh Mackenzie and Associates, based in Toronto.