Ontario unions are reacting strongly after the Liberal government tabled a budget on Tuesday that suggested freezing wages and scaling back pension contributions for public sector employees.

Finance Minister Dwight Duncan suggested that the government would be prepared to take legislative action if the unions did not accept a contract offer that was consistent with the province's plan to save costs.

"We'll have to take those steps eventually if we can't resolve problems at the bargaining table," he said.

His words sparked a fury among unions who say the budget does little to help Ontarians and puts pressure on those who work hard to deliver services with minimal resources.

The Ontario Public Service Employees Union said this budget appeases the rich and comes down hard on struggling workers.

Warren Thomas, president of OPSEU, called the budget a "shameful disaster."

"The choices made in this budget reflect an agenda that is all about prosperity for the one per cent paid for by the sacrifices of the 99 per cent," he said in a news release. "If this budget passes, it will hurt people, slow our economy, and sharply increase income inequality in this province."

Unions representing teachers and doctors were also quick to put out news releases on Tuesday, shortly after Duncan tabled the budget in legislature.

Stewart Kennedy, president of the Ontario Medical Association, said the province needs to invest more in health care and commit to a "fair" negotiation process.

"As negotiations for a new agreement continue, protecting patient care will require that the government fulfill their commitment to respect fair bargaining processes," he said in the news release. "Public statements that threaten this process and put our progress and success at risk send a negative message to the hard-working physicians in Ontario, who have been working longer and harder to improve access to patients."

The Ontario English Catholic Teachers' Association said it consulted with the government and advised them to look at saving costs within the Ministry of Education's bureaucracy rather than at ways that would impact classrooms.

"The government has stated it has taken a 'balanced' approach to this budget, which implies that there is some give and take to help achieve overarching goals," said Kevin O'Dwyer, OECTA president. "We have always said that we are willing to do our part in these tough economic times, but right now the government's main target in education is teachers."

He said teachers will continue to negotiate their contract in good faith but slammed the government for threatening them with legislative action.

"Continuing to deal with bargaining issues and threatening legislative action in the media is detrimental to the constructive dialogue that is needed at this time," he said.

The Ontario Federation of Labour is taking immediate action to voice their displeasure with the budget publicly. The OFL is organizing a rally titled "We are Ontario: A day of action demanding prosperity, not austerity."

A news release issued Tuesday afternoon said more than 100 unions would be represented at the rally which is set to take place on Saturday, April 21, between 3 p.m. and 5 p.m.

NGOs and students groups are also expected to take part in the rally. The budget called for reducing education costs in Ontario by merging school boards, shutting down schools, capping the high school credit limit and cutting back on funds to expand post-secondary schools.

Andrea Horwath, leader of the Ontario NDP -- the political party mostly favoured by unions --  told reporters Tuesday afternoon she wasn't sure if she would vote against the budget or not.

However, she told reporters she was "quite concerned" about what the government was suggesting in its budget, particularly around the language with respect to collective bargaining.

"You don't have a respectful conversation with someone while holding a gun to their hand," she said.

She said before she makes a decision on how to vote, she will speak to Ontarians and members of her party.

"Our goal is to put people first. This budget takes small steps to having a balanced approach but it falls short on priorities," she said. "The responsible thing to do is engage people in a discussion. I think people expect us to work together when they elect a minority government."

Duncan said he's optimistic everyone will come to an agreement on how to proceed with new contracts in the face of economic pressures.

"We will maintain our respect for our partners in the public sector," he told reporters. "We will respect the collective bargaining process but we have to achieve fiscal numbers. We will use measures needed to achieve those numbers. With all of us working together, we can address this."