bill 148 fair workplaces better jobs act - gncc · 2017-09-15 · fair workplaces better jobs...
TRANSCRIPT
Bill 148Fair Workplaces Better Jobs Act
Agenda
1. OverviewofChanges2. Advocacy3. HelpingEmployersTransition
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Overview of Changes
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Fair Workplaces Better Jobs Legislative TimelinesJanuary 1,2018 January1,2019
$14perhourminimumwage $15perhourminimumwage
VacationPay Locationchangerequests
PersonalEmergencyLeave Minimumthreehourspay
EqualPay forEqualWork(April1,2018) Refusalofshiftswith lessthan4daysnotice
AllLabourRelationsActprovisions(ie.unioncertificationandbargaining),willoccur6monthsafterroyalassent.
ELECTIONJune7,2018
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Fair Workplaces Better JobsMinimum Wage
MinimumWageCategories
CurrenttoSept.30,2017
Oct.1,2017toDec.31,2017
Jan.1,2018toDec31,2018
Jan12019toSept.30,2019
GeneralMinimumWage
$11.40perhour $11.60 $14.00 $15.00
Studentsunder18whoworknotmorethan28hoursperweek
$10.70perhour $10.90 $13.15 $14.10
LiquorServers $9.90perhour $10.10 $12.20 $13.05PercentageIncreasefromCurrentMinimumWage
2% 23% 32%
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Fair Workplaces Better Jobs Act
• Card-basedunioncertificationprocessfortemporaryhelpagencies,buildingservicessectorandhomecare/communityservices.
• Accesstoemployeelistsonceunionhassupportof20%ofemployees.• OntarioLabourRelationsBoardcanconductvotesoutsidetheworkplace.
UnionCertification
• Allemployeespaidequallywhenperformingthesamejobforthesameemployer.• TemporaryHelpAgenciespaidequallytopermanentstaffwhenperformingthesamejob.
• Exemptionsforequalwagesbasedon:seniority,merit,productionoutput.
EqualPayforEqualWork
• Allemployeesentitledto10PELdays/year(2paid)• Norequirementfordoctorsnotes
PersonalEmergencyLeave
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• Employeerequestedschedule/locationchangesafter3monthsemployment.• Mustbepaid3hoursifashiftiscancelledwithin48hoursoran“on-call”employeeisnotcalledinforwork.
• Abilitytorefuseshiftsifrequestslessthan4daysinadvance.• Thelegislationlacksclarityastowhatdefinesexemptionstoprovisionsinregardstoweather.
Scheduling
• 3weeksafter5yearswithsameemployerPaidVacation
• AverageregulardailywagebasedoffofmonthpriorPublicHoliday
• 175moreemploymentstandardsofficers• MinistryofLabourprogramtoeducateSMEsaboutrightsandobligations
Enforcement
Fair Workplaces Better Jobs Act
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Advocacy
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InresponsetorequestsfromgovernmentforincreasedemployerinputintotheChangingWorkplacesReview,theOCChasformedKeepOntarioWorking(KOW)– asectorally diverseallianceofindustrygroupscommittedtoevidence-basedlabour reforminOntario.Thisgroupincludes:
Keep Ontario Working Coalition
Overall,theKOWgroupfeltaneedtobemoreoutspokenagainsttheproposedchangeswithanemphasisontheharmfulandunknownconsequencestobusinessprovision,supplychains,automationandtheconsumermarkets
Throughdigitalmediaactivity,KeepOntarioWorkingisactivelyencouragingthebusinesscommunitytosharetheirperspectivesonchangingworkplacesandthelegislationwiththegovernment
CanadianFranchiseAssociation
Food&BeverageOntario
NationalAssociationofCanadianConsultingBusinesses
OntarioChamberofCommerce
OntarioForest
IndustriesAssociation
OntarioRestaurant,Hotel&Motel
Association
RestaurantsCanada
RetailCouncilofCanada
TourismIndustry
AssociationofOntario
OntarioRealEstateAssociation
FoodandConsumerProductsofCanada
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Strategic Approach
• SentalettertothePremierinadvanceofBill148toaddresssuggestedchanges.
• Releasedastatementtoourlocalnetworkinformingthemofchangesandnextsteps.
• ContinuingconversationswiththeSecretaryofCabinet,thePremier’sOffice,theMinistryofLabour,theMinisterResponsibleforSmallBusiness,theMinistryofFinance,theMinistryofEconomicDevelopmentandGrowthandtheTreasuryBoard.
• MediarelationsincludingTheNational,FinancialPostandtheAgendawithStevePaikin.
Pre-legislation
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Strategic Approach
•EconomicImpactAnalysistooutlinenegativeimpactsoflegislation.•UpdateandPromotionoftheKeepOntarioWorkingwebpage.•ReleasedanopenlettertothePremiersurroundingthepaceofBill148implementation.• PresentationtotheStandingCommitteeonFinanceandEconomicAffairs• LetterwritingtoPremier,OppositionLeaders,Ministers,CriticsandlocalMPPs.•GatheringstoriesfromOntarioBusinesswithheavyemphasisonnegativeconsumereffects.• Regionaleventsandtownhalls.
Phase1:JunetoMid-August
•Utilizingoutcomesoftheeconomicanalysistoconsidermethodsforeffectiveengagementandcommunicationoflegislativeimpacts.
•Governmentrelations,socialmedia,andmediarelationstopromotereportkeyfindings.• Strategieswillplaceheavypoliticalpressureintermsofvoterbasis,support,andoutreach.
Phase2:Mid-AugusttoSeptember
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Economic Impacts
OnAugust14th,theKeepOntarioWorkingcoalitionreleasedthefirstandonlyindependenteconomicimpactanalysisoftheimpactofBill148.Theanalysisindicatesthat:Bill148willcreate$23billionhittobusinessesoverthenext2years.• Guidedbyliterature,CANCEAhasmadeanassumptionthatemployerswillabsorbthose
costsasfollows:– Employeesbear50%oftheinitialcost($11.4Bofthe$22.9B)Employerswilldetermine
howtosqueezethisamountoutoftheirlabourforce– Consumersbear29%oftheinitialcost($6.7Bofthe$22.9B)Priceincreasesaren't
stimulative– Businessesbear21%oftheinitialcost($4.8Bofthe$22.9B)The$4.8billion,whichwill
translateintohighersalariesandemployeebenefits,willturnintoastimulatoryeffectof$11billionovertwoyears
$23billion Hittobusiness- $11billion Stimulative impactfromincreasedconsumerspending$12billion Problemforoureconomy
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Economic Impacts
• Consumerscanexpecta50percentincreasetoinflationforthisyearandtheforeseeablefuture,increasingeverydayconsumergoodsandservicesby$1,300perhouseholdonaverageeachandeveryyear.
• About185,000jobsareexpectedtobeatriskoverthecomingyears.ThiswillgreatlyimpactOntario’smostvulnerableworkers.2.7%ofthejobswithintheNiagararegionarepredictedtobeatrisk.
– 30,000ofthoseatriskareunder25.– 96,000ofthoseatriskareexpectedtobewomen.
• Sectorsfacingthehighestrisktojobsinclude(estimatedjobsatrisk):– Manufacturing(16,800jobs)– Accommodationandfoodservices(17,300jobs)– Retailtrades(14,700jobs)– Wholesaletrades(16,000jobs)– Professional,scientificandtechnicalservices(14,000jobs)– Financeandinsurance(13,000jobs)– Privatesectorhealthcareandsocialassistance(8,000jobs)
Protecting Against Unintended ConsequencesConsideringtherisksoutlinedinthiseconomicimpactanalysis,itisimpossiblefortheGovernmentofOntariotoensurebusinesssuccessthroughoffsetsalone.
Todemonstratetruefairness,theGovernmentmust:• Slowdownimplementationtoavoidunintendedconsequencesand
protectOntario’sjobs,communitiesandourmostvulnerable• ImplementbroadamendmentstoBill148;and,• PresentpolicyoptionsandoffsetstoensureOntario’semployersaresupportedin
transitioningintoBill148.
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Bill 148 AmendmentsMinimumWage• Toallowforpredictabilityandtheabilitytoadjust,aslowerpaceofminimumwagemustbe
considered.EqualPayforEqualWork• Theseprovisionsshouldnotapplyduringthefirstsixmonthsthatassignmentworkersandseasonal
employeesareperformingworksimilartofull-timeemployees.Scheduling• Thegovernmentshouldlookforsectorbasedexemptionsasone-size-fits-allsolutionsfor
schedulingprovisionsdonotwork.UnionCertification• Thesecretballotprocessforcertificationshouldbepreservedforallsectors.• Certificationprocessesforunionformationandaccesstoemployeelistsshouldremainat40per
centofemployeesinvolved.PaidEmergencyLeave• Thegovernmentshouldpreservethe50-employeethresholdforPELandclarifythegreaterrightor
benefitprovisionintheESA.JointEmployer• AmendS4.1(b)oftheESAtoallowfordiscretionarynotobligatoryobligations
forseparatepersonstobetreatedasoneemployer.15
Helping Employers Transition
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Keeping Ontario Competitive
The OCC is meeting with key officials to discuss how the Government can ensure that Ontario’s business community remains competitive, while also helping employers transition to new regulations and requirements. The OCC recommends that the Government of Ontario:
1. Reinstate scheduled reductions in the Business Education Tax.2. Reduce the Corporate Income Tax.3. Reduce the Employer Health Tax.4. Restore the Ontario Research & Development and
Innovation Tax Credits to 2016 amounts. 5. Increase the charitable HST rebate.
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Business Education Tax (BET)
• Provincialpropertytaxes,effectivelyknownastheResidentialEducationTax(RET)andtheBusinessEducationTax(BET)arecontrolledandregulationbytheProvince.
• TheBETratevariesthroughouttheprovince,dependingonabusinessesmunicipality.• In1998,anadvisorypanelrecommendedthestandardizationoftheBETratethroughoutthe
province,stating“Aprovince-wideuniformrateappliedtoabroadbasewithfewexemptionswouldbefair,clearandsimple.
TheOCCrecommendsthattheGovernmentreinstatescheduledBETreductionstoauniformrate.
Municipality BusinessEducationTaxRateHalton,Regionof 0.86%Peel,Regionof 1.04%Haliburton,Countyof 1.08%ThunderBay,Cityof 1.14%Toronto,Cityof 1.14%Windsor,Cityof 1.37%London,Cityof 1.39%
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Ontario Corporate Income Tax
• Inthe2009Budget,theGovernmentpledgedtoreducetheCorporateIncomeTax(CIT)rateto10percentby2013.AccordingtotheMinistryofFinancewebsite,thiswouldprovideatenyearbenefitof:– Increasedcapitalinvestmentof$47billion;– Increasedannualincomesofupto8.8percent,or$29.4billion;and– Anestimated591,000netnewjobs.
• Thiswashaltedin2012andthecurrentrateremainsat11.5percent.
TheOCCrecommendsthattheGovernmentreinstatethescheduledprovincialCorporateIncomeTaxreductionfrom11.5%to10%.
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Employer Health Tax (EHT)
• EHTpremiumsarecalculatedbymultiplyingtotalOntariogrosscalendaryearpayrollbythetaxrateapplicabletothatamount.Forgrossemploymentover$400,000/yeartheEHTtaxrateis1.95%.
• Areductioninthetaxablepayrollamountswouldlowertheburdenonbusinessesandprovidetheabilityforgreaterproductivityandcompetitivenessthroughincreasedcapitalinvestments.
TheOCCrecommendstheGovernmentlowertheEHTratefromthecurrentrateof1.95%.
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Charity HST Rebate
• ThecharitablesectorhasexpandedrapidlyinthelasttwodecadesandisnowamajorsectorinCanadaandOntario.Thisgrowthhassupportedalargenumberofjobsandiscreatingsignificanteconomicgrowth.
• Thisgrowthisdrivenbydemandforanincreaseinthenumberofcharities.Aspopulationgrows,ages,andbecomesmorediverse,thedemandfortheservicesthatthesectorprovides— health,socialservices,recreation,cultureandsoon-tendtoincrease.
• CharitiesandpublicinstitutionsresidentinOntarioqualifyforan 82% rebateofthe provincial partoftheHSTon non-selected publicservicebody activities.
TheOCCrecommendstheprovincialgovernmentincreasethecharityHSTrebateto100%toensurethatthesectorcancontinuetomeetrapidlyincreasingdemands.
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Research & Development and Innovation Tax Credits• Inaglobalized,technology-driveneconomywherebusinessesareexpectedtoinnovate
regularly,CanadamustinvestinR&Dinordertostaycompetitive.
• In2016,theGovernmentofOntariomadesignificantcutstotheResearch&DevelopmentandInnovationTaxCreditsinfavourofspecificgrantsprograms.
• WhenCanadianandOntarioresearchandinnovationarefallingbehind,cuttingtheprogramsthatencourageandnurtureprivatesectorR&Dcanonlyexacerbatetheproblem.
TheOCCrecommendsthattheProvincialGovernment:• RestoretheOntarioResearch&DevelopmentTaxCreditto4.5%,asitwasbeforethe2016
Budget.• RestoretheOntarioInnovationTaxCreditto10%,asitwasbeforethe2016Budget.
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Small Business Offsets
• Ontario’sgovernmentismakinganefforttoboostentrepreneurshipandcreatenewandinnovativebusinesses.Theobjectivesofthisefforthasbeentoenablesustainableandlong-termeconomicgrowth.
• Despitetheseencouragingresults,theexpectedeconomicrewardsofbusinesscreationhavenotbeenrealized.
TheOCCisproposingfurtherrecommendationstoencouragemethodstoimprovethechallengesfacingthescaling-upofsmallbusinessesinOntario.1. LowertheprovincialsmallbusinessdeductioninconjunctionwithCITdeductions.2. AllowallOntario-incorporatedprivateenterprisestoqualifyforasmallbusinessdeduction.3. Exploreopportunitiestocreateabracketedsmallbusinessdeduction.4. Exempthigher-growthfirmsincrementalincometotheirrespectivecorporatetaxes.5. UtilizetheOCCinthecreationofthegovernment’sannouncedSMEconciergeservice.
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Ontario Small Business Deduction (SBD)• ThecurrentOntariosmallbusinessdeductiontaxrateof4.5%isthesecondhighestinCanada.
– Manitoba’sSBDwasreducedto0%in2015,whileBritishColumbiaandAlbertaareat2.5%and2%respectively.
• AreductionintheSBDtoalevelcomparablewithotherprovinceswouldallowsmallbusinessestoremaincompetitive.
• Currently,toapplyforOntario’sSMD,abusinessmustbea“Canadian-controlledprivatecorporation”(CCPC).ForOntario’ssmallbusinessestoscale-upandremaincompetitive,theCCPCruleshouldbechangedtoencourageinvestment.
• RemovaloftheCCPCrequirementwouldmeanthatforeignentrepreneursandinvestorswouldbeencouragedtoestablishwithinOntarioandutilizetheSBDtosupportandgrowOntario’ssmallbusinesseconomy.
TheOCCrecommendstheGovernmentlowertheprovincialsmallbusinessdeductiontaxrateinconjunctionwithCITdeductions.Additionally,thesmallbusinessdeductionshouldbeavailabletoOntario-incorporatedprivateenterprises(OPEI),allowingforincreasedinvestmentandinnovationintheprovince.
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Bracketed Tax and Income Exemptions• Ontariohasabove-averageearlystageentrepreneurialactivityamonginnovation-driven
economies,however,thisactivityhasnotresultedinfurthergrowthandinnovation.
• Overthepasttenyears,71percentofthejobscreatedintheprivatesectorcanbeattributedtotheactivitiesofSMEs.
• Asaresultofincreasesinbusinesstaxrateswhenannualincomeincreasesabove$500,000Ontario’ssmallbusinessesarenotencouragedtoseekopportunitiestoscale-up.
TheOCCrecommendsthecreationofabracketedsmallbusinessdeductionratherthanaflatrateforallbusinesseswithanannualincomelessthan$500,000.
TheOCCencouragesOntariotoexemptabusiness’annualincrementalincomefromtheSBDorCIT.Conditionstoqualifyfortheexemptionshouldbesettotargethigher-growthfirms.
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One-Window Service
• TheOCChaslongurgedgovernmenttoestablisha“one-windowregulatoryconciergeservice”toassistsmallbusinessesinunderstanding,navigating,andachievingcompliance.
• TheOntariogovernmentannouncedinMay2017thatitwillintroducenewlegislationtocutunnecessaryredtapeforbusinessbyintroducinga“one-windowservice”tohelpSMEs.
• Theprogrampromisestohelpsmallbusinessesaccesssupport,informationandresourceswhennavigatingOntario’sregulatoryenvironment.
• ByutilizingtheOCC’sdepthofunderstandingofthechallengesfacingOntario’sbusinessescommunity,ourcapacitytoleverageexistinglocalchambersofcommerceandregionalboardoftradesand,ourapproachtosolution-orientatedmethods,theOCCisataverystrongpositiontoworkwiththegovernmenttofacilitateanddelivervaluebasedprogramsforbusinessesacrosstheProvince.
TheOCCshouldundertakethecreationofthenewbusinessconciergeservicetoassistOntarioSMEswithregulationsandcompliancerequirements.
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Our Request
Followingthispresentation,theOCCencouragesyouto:1. VisittheKeepOntarioWorking.cawebsite2. SendlettersorphoneyourlocalMPPtoinformthemofyourthoughts.3. SharetheimpactsofBill148withyourfamily,friends,co-workersand
customers4. RecommendoffsetoptionstotheOCCwhichwillensureOntario
businessesremaincompetitiveandsuccessful.
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KarlBaldaufVice-President,PolicyandGovernment
[email protected] |647-888-2866