Municipalities across Ontario are dodging a costly bullet.
Tecumseh Mayor Gary McNamara says towns and cities across the province won't be facing the millions of dollars in new labour costs brought on by Bill 148.
McNamara says he's been assured in a letter from the government there will be an exemption for parts of the bill that impact municipalities most.
Tecumseh was looking at a projected $1.4-million in new costs legislated by Bill 148, known as The Fair Workplaces, Better Jobs Act.
McNamara says the extra spending Bill 148 would have required wouldn't have achieved anything.
"Those are additional costs that give the municipality absolutely no increase in services, no increase in capital to repair bridges and roads. This is taking money out of the equation."
McNamara says the budget discussion in Tecumseh would look a lot different than the 2.2% proposed tax increase councillors will discuss later this month.
He is breathing a sigh of relief after getting news of the exemption.
"It came late, but I'll take it."
McNamara says the province has heard from municipalities that small town and northern Ontario would have been hit hard.
"They've come to understand that we are fair employers and that we take care of our folks."
Bill 148 is the Ontario government's revision of labour laws that includes an increase in the minimum wage along with other provisions like equal pay for equal work which ensures pay doesn't change based on employment status.