Changing Workplaces Review: Public Consultations to Strengthen Ontario Labour Laws

Transcription

1 Changing Workplaces Review: Public Consultations to Strengthen Ontario Labour Laws Canadian Manufactures and Exporters July 7, 2015 Stephen Shore 250 Yonge Street Suite 3300 Toronto, Ontario M5B 2L7 Tel Fax Hour

2 Agenda 1. Changing Workplaces Review 2015 Overview 2. Changing Workplaces Review Context 3. Employment Standards Act 4. Labour Relations Act 2

3 Changing Workplaces Review Overview Two Special Advisors to lead and coordinate public consultations on the changing workplace: C. Michael Mitchell Honorable John C. Murray The Special Advisors will hold regional public engagement sessions to gather input from Ontarians The final written report is expected by September,

4 Mandate & Scope of Review The Special Advisors have been asked to determine how the Employment Standards Act, 2000 and the Labour Relations Act, 1995 can be reformed to better protect workers while supporting business in our changing economy 4

5 The Review will NOT consider: Construction industry provisions of the LRA; Minimum wage; and Policy discussions of which other independent processes have been initiated. 5

6 Context: Changing Workplaces The public consultation sessions are intended to consider the following: The 21 st Century Workforce The Global Economy Technological Change Restructuring in the Service Economy Non-standard Employment New Forms of Work Organization Collective Representation 6

7 The 21 st Century Workforce Changing demographics will drive changes in our workforce and our economy: The percentage of persons aged 55 years or older in the Ontario labour force has increased from 10% in 1997 to 18% in 2013 and is projected to reach 24% by 2031 The proportion of foreign-born people in the Ontario labour force was 31% in 2006 and is projected to reach 41% by 2031 Starting in 2015, growth of the labour force is projected to come exclusively from immigration 7

8 The Global Economy According to the federal government trade is linked to one in five Canadian jobs In Ontario exports and imports of goods make up nearly two-thirds of gross domestic product Over half of the province s manufacturing output is exported Fostering an innovative, globally competitive economy is a top priority for Ontario 8

9 Technological Change There may be increased demand for highly skilled workers who can perform tasks that require problem solving, intuition, persuasion, motivation, people skills, and creativitytasks that cannot be performed by computers 9

10 Restructuring in the Service Economy The biggest change to Ontario s economy has been the shift towards greater output and employment in services industries The share of private-sector employees working in service-producing industries as a share of total employees increased from 51% in 1993 to about 59% in

11 Non- standard Employment Non-standard Employment includes: Temporary employment Self-employment without paid help Part-time employment where workers want more hours Employment characterized by workers who hold multiple jobs but whose total earnings fall below the median wage Non-standard employment is on the rise due to a significant increase in temporary and involuntary parttime employment 11

12 New Forms of Work Organization Modern workplaces are considered high performance organizations described by features such as: Participative decision making Skill-based or knowledge-based pay Open flows of information Flat organizational structures An emphasis on training The adoption of a workplace culture that embraces all of these features 12

13 Collective Representation All Canadian provinces have experienced a long-term decline in unionization Union Density by Industry (2012, 2013): 13

14 Discussion/Questions What should the goals of the review be? Are there any emerging employment relationships that require attention? With new types of employment relationships emerging and union density declining are there new models of worker representation beyond the LRA needed? 14

15 Discussion/Questions The MOL considers efficiency, equity, and voice to be key objectives in employment relationship? Are there others? What objectives should guide the review? Should leaves be revised based on the changing workplace? Are there new exemptions under the Act that should be considered? 15

16 Employment Standards Act, 2000 (ESA) Ontario s ESA sets out minimum rights and responsibilities that apply to workers and employers in most Ontario Workplaces Excluded from the ESA Example: students, construction workers, managers, self-employed workers (independent contracts and dependent contractors) 16

17 ESA Core Standards Minimum wage (not covered by Review) Hours of Work Overtime Vacation Public Holidays Job-Protected Leaves Notice of Termination Administrative Requirements 17

18 Hours of Work Section 17 - Maximum hours of work 8 hours per day 48 hours per week Need written agreement to work excess hours Need Excess Hours of Work Permit from MOL if working more than 48 hours per week 18

19 Overtime Section 22 All hours worked in excess of 44 in a week 1½ times regular rate; or Time-off in lieu at 1½ times overtime hours worked with written agreement Entitled to overtime pay even if granted excess hours permit Averaging Hours of Work Permit Agree to calculate overtime over period of 2+ weeks Entitled to overtime if average hours worked >44 per week Need written agreement and MOL approval 19

20 Vacation Sections Vacation time Two weeks per year Vacation pay At least 4% of gross wages Gross wages include regular wages, performance bonuses, overtime, public holiday pay etc. 20

21 Public Holidays Sections Public holiday defined in Section 1 and Regulation 285/01 9 holidays mandated by the ESA: New Year's Day Family Day Good Friday Victoria Day Canada Day Requirement: Labour Day Thanksgiving Day Christmas Day Boxing Day Give employees day off with regular pay; Agreement to work on holiday at regular pay + give employee alternate day off with regular pay; or Agreement to work on holiday at 2 ½ times regular pay 21

22 Job Protected Leaves Part XIV Pregnancy leave Parental leave Family medical leave Personal emergency leave Declared emergency leave Organ donor leave Reservist leave Family Caregiver Leave - New Critically Ill Child Care Leave New Crime-Related Child Death and Disappearance Leave - New 22

23 Notice of Termination Working notice or pay in lieu of notice Length of Employment Notice Required Less than 3 months None 3 months but less than 1 year 1 week 1 year but less than 3 years 2 weeks 3 years but less than 4 years 3 weeks 4 years but less than 5 years 4 weeks 5 years but less than 6 years 5 weeks 6 years but less than 7 years 6 weeks 7 years but less than 8 years 7 weeks 8 years or more 8 weeks 23

24 Administrative Requirements Under the ESA the Ministry of Labour can order an employer to: Comply Pay back monies Reinstate or financially compensate a worker Pay a fine Recent changes to the ESA have created new claims process and changed the amount of unpaid wages that the Ministry can recover 24

25 Discussion/Questions What changes are needed to the ESA to support businesses in a modern economy? How could the ESA be simplified while remaining fair and comprehensive? Should leaves under the ESA be revised in any way? 25

26 Labour Relations Act, 1995 (LRA) Generally the LRA governs: Establishment of bargaining rights Procedure and timeliness of certification applications Negotiation and content of collective agreements Timeliness of termination applications Successor rights Unfair labour practices Specific regulation of construction industry LRA excludes several types of workers based on: Industry Occupation or professional status, or Employment relationship (independent contractors) 26

27 Access to Collective Representation LRA sets out certification process: Union files an application demonstrating at least 40% support from the appropriate bargaining unit, followed by an OLRB-supervised secret ballot vote This vote is usually conducted within five working days of the application There is a similar process for workers to apply for decertification if they no longer wish to be represented by their union 27

28 Collective Bargaining and Dispute Resolution The LRA imposes on the parties a duty to bargain in good faith and make every reasonable effort to make a collective agreement The law also prohibits strikes and lockouts during the term of a collective agreement The LRA established the grievance arbitration process for the resolution of workplace disputes during a term of the collective agreement 28

29 Powers of the Ontario Labour Relations Board (OLRB) LRA enumerates a number of unfair labour practices and sets out the power of the OLRB to respond to complaints of contravention of the Act OLRB is able to order an employer to reinstate and compensate an employee who has been unlawfully terminated OLRB has been given remedial jurisdiction under a number of other statutes (including the ESA) 29

30 Discussion/Questions Are there changes that could be made to the LRA that would enable the parties to deal with the challenges of the modern economy? Are changes required in the manner in which workers choose union representation? Are changes needed in the way bargaining units are defined? 30

31 250 Yonge Street, Suite 3300 Toronto, Ontario, Canada M5B 2L Phone Hour Fax 31

32 The information contained in this presentation is provided for general information purposes only and does not constitute legal or other professional advice. Reading this presentation does not create a lawyer-client relationship with Sherrard Kuzz LLP. Readers are advised to seek specific legal advice from members of Sherrard Kuzz LLP (or alternate legal counsel) in relation to any decision or course of action contemplated. 32