TORONTO, Ont. – In a draft bill unveiled on Wednesday, Finance Minister Dwight Duncan warned the province’s 481,000 public sector workers will face a two-year wage freeze.

Workers at hospitals and universities will be hit by the legislation if it passes but the wage freeze will not affect police, fire, ambulance, public transit or other local workers.

Duncan said the proposal would save $2.8 billion over three years.

But there is a risk the legislation will be struck down, he said.

“Ultimately, the Supreme Court says you can’t do this, so then you’ll have the Supreme Court effectively saying to us that 55 per cent of your budget – you can’t manage,” he said.

Unlike the teachers’ legislation, it does not restrict the right to strike, Duncan said.

Labour leaders quickly slammed the legislation.

CUPE Ontario president Fred Hahn said the legislation was a stunt to divert attention from the power plant cancellation controversy.

“The timing of the announcement shows that the Liberals are more eager to change the channel from their contempt of the legislature,” he said.

“This is really a cynical attempt to change the channel and they think this will help their electoral fortunes.”

Hahn dismissed Duncan’s claim that the legislation will preserve the right to strike.

“It empowers them to do much more than wage freezes,” he said. “This is not about zeroes. This is about stripping people’s constitutionally-protected rights to negotiate their collective agreements.”

Ontario Federation of Labour president Sid Ryan said the labour unions might work to defeat the Liberals in the next election.

“If you piss off your base, there’s no way you are going to win an election,” he said.

“Liberals have more than pissed of their base.”

“A lot of leaders are saying we will not be supporting the Liberals in the next election.”

NDP Leader Andrea Horwath blasted the bill as irresponsible.

“It’s a reckless and cynical plan,” Horwath said. “It will also create turmoil in our hospitals, our long-term care homes, our universities, across the province.”

Duncan said he is not re-opening existing contracts or withdrawing the right to collective bargaining.

“Our public sector is relatively the same size today as it was 10 years ago,” Duncan said.

“This is responsible, it’s fair and it’s balanced.”

The Conservatives said it is not the bold action that is needed. It would still allow collective bargaining but if the government does not like what the two sides negotiate, it would have the power to impose a contract, he said.

Under the legislation, called the ‘Protecting Public Services Act,’ unionized employees would have their compensation frozen for two years. There is also a permanent salary cap for new executives at no more than double the Premier Dalton McGuinty’s salary.

There is no date to introduce the bill – which would cover 2,295 collective agreements – in the Ontario legislature.

It does not affect school boards because they are part of previous legislation.

Bargaining for future contracts will continue; however, the agreements are subject to review and approval until the provincial budget is balanced.