Elgie was first elected to the Legislative Assembly of Ontario in the 1977 provincial election, winning an easy victory in the Toronto-area seat of York East. After a brief period in the government backbenches, he was appointed to Bill Davis's cabinet on August 18, 1978 as Minister of Labour. A Red Tory by ideology, Elgie was easily the most left-wing figure in the Davis cabinet. He was supported by the province's unions, and passed amendments to Ontario's Human Rights Code and Occupational Health and Safety regulations which were favourable to labour interests. Some campus Progressive Conservative groups opposed his efforts to grant human rights officers the right to investigate and arbitrate reports of workplace discrimination.