The point made by the writer is the following:
failure to use a person’s pronoun of choice — “ze,” “zir,” “they” or any one of a multitude of other potential non-words — will land you in hot water with the commission. That, in turn, can lead to orders for correction, apology, Soviet-like “re-education,” fines and, in cases of continued non-compliance, incarceration for contempt of court.
There are several articles out there that state that the incarceration claim is false, but they actually corroborate many of the other claims. Here's a good example:
https://factcheck.afp.com/no-canadians-cannot-be-jailed-or-fined-just-using-wrong-gender-pronoun
Milne said the malicious misuse of a pronoun could be used to highlight a wider pattern of discrimination, but jailing someone is not a possible outcome for these type of lawsuits. The entity providing services could have to pay damages or send the concerned worker to sensitivity training, but not without other proof of discrimination.
In other words, the fines and "re-education" are real. The difference between this law and American anti-discriminatory laws is that the state here does not get involved in things like "sensitivity training", whereas the Canadian government does. It's very different for an employer to require an employee to take said training vs. having the state require it. That's when things get Orwellian.