Arbitrator's ruling on Ontario health tax upheld by court

Decision likely to influence similar challenges

Toronto - The Divisional Court of Ontario has upheld an arbitrator's ruling requiring a Guelph nursing home to pay the Ontario health premium tax for its unionized workers.

The ruling, which undermines the province's position that individuals are responsible for the tax, is expected to influence future challenges on behalf of workers.

An arbitrator ruled earlier that collective agreements containing language dating back to Ontario's former OHIP (Ontario Hospital Insurance Plan) premiums also applies to the new health tax.

OHIP premiums ended in 1991. The new tax, which ranges from $300 to $900, was imposed in 2004 by the Liberal government of Premier Dalton McGuinty.

The Divisional Court ruling can be challenged in the Ontario Court of Appeal. No appeal has yet been filed. NUPGE

More information:
• Arbitrator says employer must pay Ontario health tax

Web posted by NUPGE: 25 October 2005

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