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“We’re in a net zero world these days and we’re living in a net zero world,” Matthews said, explaining that total compensation spending must remain flat, but small wage increases could be allowed so long as they are offset by other savings, hence the “net” zero.

Almost three quarters of new program spending the last five years go to compensation

But the Fraser report also finds that the Liberals have not done as a good job at holding the line on compensation as they have on saving in other areas of program spending.

“Unfortunately in recent years the restraint hasn’t gone far enough,” Lamman said. “Almost three quarters of new program spending the last five years go to compensation.”

It’s a problem Matthews is tasked with tackling in the upcoming 2015 budget, expected sometime this spring. And the report highlights an area of concern she shares from her past post as healthy minister: doctors. Currently, 10 cents of about every dollar Ontario spends each year goes to a doctor, or about 20% of compensation spending.

Tense negotiations with the Ontario Medical Association already broke down once; Ontario’s teachers — who make the most off the public purse following doctors — are also threatening to strike.

“We can’t go higher without taking it from somewhere else… I do not believe there are very many physicians in this province who would say, ‘Cut from home care so I can be paid more,’” Matthews said.

Public sector unions have also repeatedly pointed out that those figures don’t tell the whole story.

“The real wages of Ontario public sector workers have declined in real terms (fallen below inflation) since 2009 by a cumulative -4%,” said Toby Sanger, senior economist with CUPE on Tuesday. “Yes, Ontario public sector workers gained some real wage increases in the eight years before then, but that came after nine years of real wage losses of a cumulative -6.5%. Since 1990 Ontario public sector workers have received had an overall real wage increase adding up to 2.5%.”

That works out to 0.1% a year, far less than more CEO or the rate of inflation, he said.

Last year, the Liberals offered targeted raises to key sectors: personal support workers, homecare workers and early childhood educators. All three are chronically underpaid and predominantly female posts in the public sector.