Over $1 billion goes to private companies administering Ontario government programs: OPSEU report

A new public sector union report is drawing attention to how much public money is going to private companies that administer government services.

A new report authored by a public sector union whose members are striking for a second week is calling attention to how much more public money is going to private companies that administer government services.

The report, by the Ontario Public Sector Employees Union (OPSEU), says it’s calculated that last year, just the top three private administrators earned over $1 billion in payments for their work on programs from Employment Ontario to autism supports.

“That is a waste of money,” said OPSEU president JP Hornick in an interview on Tuesday.

“This is an example of how the Ford government has taken public money and put it into black boxes so it’s impossible to trace.”

The report details payments sent to a few companies, including Accerta, which is involved in administering Ontario Works, Ontario Disability Support Program, and the Ontario Autism Program.

Provincial payments to Accerta more than tripled from $202 million in 2018-2019 to $672 million in 2024-2025.

Payments sent to WCG, which the report describes as a for-profit employment services administrator owned by an Australian company backed by US private equity, increased 525 per cent, from $36 million in 2021 to $225 million in 2025.

Neither company responded to a request for comment, though the other private administrator in the top three, Serco, said it has operated in Canada for over 30 years.

“Serco values the relationship we have built with Ontario, and we are proud to work within the direction and guidelines provided to us by the Ontario government in service of its citizens. We employ more than 1,100 professionals across the province and work closely with local organizations, including indigenous community groups, to deliver regionally focused programs and services. We look forward to being part of many more successes for Ontario and its citizens well into the future,” the statement from spokesperson Jake Weyant said.

A spokesperson from the Ministry of Children, Community and Social Services didn’t address questions about the reason for the funding increase.

“Our government has made historic investments in the development services sector, including nearly $4 billion this year, an increase of $1.6 billion since we took office in 2018 to provide people with access to the services they need, when they need them,” the spokesperson said in a statement.

“While collective bargaining is a matter between the employer and the union, we expect every service provider to have strong contingency plans to protect residents and ensure their care is not disrupted,” the spokesperson added.

Nearly 4,000 OPSEU members who work in dozens of community organizations across Ontario are on strike or locked out. Among the union’s demands is retroactive pay related to Bill 124, which capped public-sector wage increases. It was later ruled unconstitutional.

At one site providing autism services, Surrey Place in North York, about 80 workers on a picket line chanted and waved signs.

“Community services are worth fighting for!” said one woman with a bullhorn, referring to the tagline for the job action, “Worth fighting for,” which involves some 4000 workers provincewide.

Bel Reymundo, who works for the school support program at Surrey Place and is the vice president of OPSEU Local 511, said she was on strike to get more funding for the public sector and regain some of the losses from Bill 124, which capped public sector wages.

“Funding to developmental sector has definitely gone down. We have had ourselves over 50 layoffs in the past two years. Our waitlists have gotten longer and longer,” she said.