Memorandum of settlement

(“MOS”)

Of all outstanding matters in respect of Bill 124 remedy negotiations

Between:

The Ontario Cannabis Retail Corporation

(“OCRC”)

And

Ontario Public Service Employees’ Union on behalf of its Local 553

(“OPSEU”)

Whereas OPSEU is the bargaining agent for collective bargaining in respect of the OPSEU Bargaining Unit;

And whereas OPSEU and OCRC negotiated and subsequently ratified the collective agreement for the OPSEU Bargaining Unit for the period April 1, 2022 to March 31, 2025 (the “Moderated Collective Agreement”);

And whereas the Protecting a Sustainable Public Sector for Future Generations Act, 2019 (“PSPSFGA” or “Bill 124”) was previously in effect and OPSEU and OCRC were subject to the terms and conditions of the PSPSFGA during their round of collective bargaining negotiations for the Moderated Collective Agreement;

And whereas the constitutionality of the PSPSFGA was the subject of litigation, which resulted in a decision of the Ontario Superior Court of Justice, dated November 29, 2022, finding the PSPSFGA to be unconstitutional in its entirety and declaring it to be of no force and effect;

And whereas the Court of Appeal for Ontario, in a decision dated February 12, 2024, found the PSPSFGA to be constitutional as applied to non-represented employees but unconstitutional as applied to represented employees;

And whereas the PSPSFGA was repealed by the Government of Ontario in its entirety through an Order in Council on February 23, 2024;

And whereas the Parties wish to settle, by way of a full and final settlement, any and all issues, claims, and liability arising from the PSPSFGA and its impact on the Moderated Collective Agreement, for OPSEU’s Bargaining Unit employees, without the necessity of further litigation;

Now therefore, the Parties agree to the following:

  1. The Parties agree that the terms of the Moderated Collective Agreement, as ratified/approved by OPSEU and OCRC, remain in place and are unaltered, save and except the wage increases set out in Appendix A – Wages.
  2. The Parties agree that the across-the-board compensation increases (“Compensation Increases”) under Appendix A - Wages for Year 1 effective April 1, 2022 to March 31, 2023, Year 2 effective April 1, 2023 to March 31, 2024, and Year 3 effective April 1, 2024 to March 31, 2025 of the Moderated Collective Agreement shall now be 2% for Year 1, 2% for Year 2 and 2% for Year 3 respectively.
  3. The Compensation Increases are in addition to the 1% annual Compensation Increases previously agreed to and implemented under the Moderated Collective Agreement.
    1. The Compensation Increases will be compounded and included in OPSEU Bargaining Unit salary schedules and applicable premiums and allowances in effect on April 1, 2022, April 1, 2023 and April 1, 2024. For clarity, these Compensation Increases will only apply as a flow-through to applicable premiums and allowances that were increased with 1% ATBs in the Moderated Collective Agreement.
    2. Compensation Increases will apply only to those persons employed in the Years to which the Compensation Increase relates and covered by the scope of the Moderated Collective Agreement.
    3. Where a compensatory amount under the Moderated Collective Agreement is already pensionable, these Compensation Increases will also be pensionable.
  4. This MOS is final and binding upon the applicable Parties hereto and shall form the exclusive remedy in respect of any and all issues and claims arising from the enactment, operation or repeal of the PSPSFGA and its impact on the Moderated Collective Agreement, including claims that could have been asserted [in the context of the litigation before the Superior Court of Justice and the Ontario Court of Appeal in Court of Appeal (File No. COA-23-CV-0010) or] generally as at the date of execution of this MOS. Without limiting the generality of the foregoing, “claims” and “claims that could have been asserted” include claims against His Majesty the King in right of Ontario (“the Crown”) and claims for relief under section 24 of the Canadian Charter of Rights and Freedoms and section 52 of the Constitution Act, 1982.
  5. The Parties agree that nothing in this MOS is an admission or concession of liability or wrongdoing on the part of any of the Parties to this MOS, or their employees, agents, officials and servants.
  6. The Parties agree that this signed MOS constitutes the entire agreement between the Parties with respect to the subject matter herein and supersedes any and all prior oral or written agreements, arrangements or understandings between them.
  7. The Parties agree that this MOS may be executed electronically and in counterpart.

Signed in Toronto this 10th day of July, 2024

For OPSEU:
Signature - John Kilshaw
Signature - Ravie Samaroo
Signature - Shane Beetham
Signature - Marc Casey

For OCRC:
Signature - David Buck
Signature - David Lobo

Order in Council 1097/2024