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Ontario introduced legislation Wednesday to limit wage increases for public sector workers, including teachers and nurses — a move major unions said could derail ongoing contract negotiations, spark protests and give rise to a court challenge.

The bill would cap wage increases to an average of one per cent a year for three years for the broader public sector.

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Treasury Board President Peter Bethlenfalvy called it a “fair and time-limited approach” as the Progressive Conservative government works to eliminate an $11.7 billion deficit.

“This is really good news for our public sector workers because we are protecting jobs today,” he said.

“Our government values the important role that all public sector workers play in delivering programs and services to the people of Ontario. Our province’s fiscal reality means we must be honest about ensuring sustainability of government programs and services.”