Social Policy in Ontario

Ontario’s new workplace laws will be ‘profoundly negative’ for an economy already lacking competitiveness Republish Reprint Special to Financial Post

Posted on May 18, 2017 in Debates

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NationalPost.com – FP Comment
May 18, 2017.   Karl Baldauf

Government cannot legislate prosperity. As we look internationally, it’s clear that jurisdictions that seek to grow their economy through increased regulation are left with lower labour market participation and higher unemployment, especially among young people.

The task of creating a more dynamic workforce, where employees are treated fairly and economic growth can prosper, must be approached not on the basis of ideology and politics, but driven by evidence-based policy.

These workplace reforms will tip our economic balance in a profoundly negative way

Over the last two years, the Ontario government has pursued the Changing Workplaces Review, a once-in-a-generation assessment of the Employment Standards Act and the Labour Relations Act. The outcome of this review will change the relationship between every employee and employer in Ontario.

According to media reports this weekend, the Ontario government is considering measures that will risk many unintended consequences while passing new costs on to consumers. This week, we were told that the provincial cabinet will consider several options including a minimum number of sick days, increasing annual paid vacation and boosting the minimum wage to $15 an hour.

In a letter sent to Premier Kathleen Wynne on behalf of Ontario’s employer community, the Ontario Chamber of Commerce objected in the strongest terms to many of the reforms that are potentially being considered. Taken as a whole, these reforms will tip our economic balance in a profoundly negative way. The changes would further restrict the flexibility of part-time and contract employees, diminish transparency and informed employee choice in the union certification process, and institute “paperwork provision” that will add new layers of red tape to the existing regulatory framework. It is important to remember that good jobs are the direct result of a strong and growing economy.

These conversations are timely. We are told that the government is responding to a “general anxiety” that exists among many in today’s workforce around the quality of work. The response from government is to ask more of employers. We are concerned that this approach is being done without truly appreciating the implications of such decisions.

In this two-year review, no attempt has been made to truly quantify or research the economic impact of many of these policy options. But business can’t afford this approach.

Our ask to the premier has been clear: Spend the coming months appropriately subjecting the proposed reforms in the final report of the Changing Workplaces Review to an economic impact analysis. This analysis should have clear acceptability thresholds, and the reforms implemented should be limited to those that pass such thresholds or are being implemented with a commensurate economic offset measure. We support reform where and when it is needed, but caution against change for change’s sake.

As we engage with the issues of non-standard work and a changing workplace, we must also be honest about the scale of the problem. Part-time jobs now account for a lower percentage of all jobs than they did a generation ago — 18.8 per cent in 2015 versus 19.5 per cent in 1992. The average hourly wage in Ontario has risen by 33.6 per cent, while the median wage is up 29.2 per cent. Of all jobs created since the recession in Ontario, 98 per cent have been full-time and 78 per cent are in above-average-wage industries.

Clearly Ontario’s private sector is doing our part to create good, high-quality jobs. We’re doing that despite the many challenges that exist — including a 69-per-cent increase in the cost of producing a unit of output (versus 28 per cent in the United States).

Simply put, it’s getting more expensive to operate a business in Ontario, and businesses that operate here risk growing less competitive.

For all the conversation around fairness, we cannot simplify this discussion into a political argument that pits employee versus employer. Ontario’s businesses want to create well-paid and rewarding jobs and careers. But to get there, business needs government to help and not hinder our ability to grow the economy.

Karl Baldauf is the Ontario Chamber of Commerce’s vice president of policy and government relations.

http://business.financialpost.com/fp-comment/ontarios-new-workplace-laws-will-be-profoundly-negative-for-an-economy-already-lacking-competitiveness

Tags: featured, ideology, participation, rights, standard of living

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