Organized labour in British Columbia claim new legislative changes give employers too much power; employer groups say it is a good start, but would like to see more.
The B.C. government introduced three sweeping pieces of legislation last month, in one day overhauling workers’ compensation, the labour code and employment standards.
“As far as the labour code is concerned, we are pleased with the results. We look at it as an important first step,” said Andrew Wynn-Williams, director of policy and communications for the B.C. Chamber of Commerce. The chamber attributes B.C.’s poor economic performance throughout the ’90s to “less than competitive labour laws.”
The British Columbia Federation of Labour said the changes will drive down wages and make workplaces less safe. Federation president Jim Sinclair called it an employers’ bill of rights.
“The three bills… will reduce limits on overtime, cut benefits if you’re injured and make it much harder to join a union if you want to bargain to achieve some fairness.”
Wynn-Williams said he is particularly pleased that the labour relations board will now have to consider the effect its actions have on the competitiveness of employers before making a ruling. The federation maintains this change will force Labour Relations Board officers to be more sympathetic to employer interests.
Employers have also been given the right to talk to employees during the certification process. The labour federation said the change will “virtually mandate employer interference in union organizing.”
Employment Standards Act
According to Labour Minister Graham Bruce changes to the Employment Standards Act (ESA) allow for more flexibility.
“Everyone benefits when we simplify the rules so both workers and employers can understand them, and when we crack down on employers that abuse the rules,” Bruce said.
The ESA changes will have the most significant impact on small businesses, said Wynn-Williams. Firms with less than 50 employees make up 98 per cent of businesses in the province and account for more than half of all private-sector jobs.
The revised act will retain the 40-hour week but employers will now be able to set schedules so that over the course of a month, employees work an average of 40 hours per week; an employee can work 70 hours one week without getting overtime pay, so long as he only puts in 10 the next.
Organized labour has a significantly different interpretation, claiming the move is intended to allow employers to “side step overtime, the 40-hour week and eight-hour day.”
But Wynn-Williams points out any flex scheduling of this nature must be done in advance and requires the agreement of the employee. He also commended the new harsher penalties for employers who violate the ESA.
“We think that there are a few small business that will break the law and rather than make the ESA so rigid and so complex that it hurts everyone,” it should be simplified but tougher penalties should be introduced to discourage violations, he said.
Previously, employers weren’t fined for a first violation of employment standards, received a $150 fine for a second offence and $250 for a third offence. Under the new act, a first offence will bring a $500 fine, $2,500 for a second violation and $10,000 for a third infraction.
Worker’s compensation
Changes to the workers’ compensation system, which include a reduction in benefits, will ensure the financial viability of the system, said Bruce.
Forecasts predict the B.C. WCB could accumulate a deficit of more than $900 million by 2005.
The changes will bring rising costs under control, said Bruce. A new way to calculate benefits (workers will now receive 90 per cent of net average earnings as opposed to 75 per cent of gross income), and a revised inflation-indexing formula are being introduced.
And, workers will only be able to claim stress leave for unexpected or traumatic events, and not for chronic stress, “caused by the pressures encountered in daily personal and work life.” Only three provinces provide compensation for chronic stress.
The B.C. government introduced three sweeping pieces of legislation last month, in one day overhauling workers’ compensation, the labour code and employment standards.
“As far as the labour code is concerned, we are pleased with the results. We look at it as an important first step,” said Andrew Wynn-Williams, director of policy and communications for the B.C. Chamber of Commerce. The chamber attributes B.C.’s poor economic performance throughout the ’90s to “less than competitive labour laws.”
The British Columbia Federation of Labour said the changes will drive down wages and make workplaces less safe. Federation president Jim Sinclair called it an employers’ bill of rights.
“The three bills… will reduce limits on overtime, cut benefits if you’re injured and make it much harder to join a union if you want to bargain to achieve some fairness.”
Wynn-Williams said he is particularly pleased that the labour relations board will now have to consider the effect its actions have on the competitiveness of employers before making a ruling. The federation maintains this change will force Labour Relations Board officers to be more sympathetic to employer interests.
Employers have also been given the right to talk to employees during the certification process. The labour federation said the change will “virtually mandate employer interference in union organizing.”
Employment Standards Act
According to Labour Minister Graham Bruce changes to the Employment Standards Act (ESA) allow for more flexibility.
“Everyone benefits when we simplify the rules so both workers and employers can understand them, and when we crack down on employers that abuse the rules,” Bruce said.
The ESA changes will have the most significant impact on small businesses, said Wynn-Williams. Firms with less than 50 employees make up 98 per cent of businesses in the province and account for more than half of all private-sector jobs.
The revised act will retain the 40-hour week but employers will now be able to set schedules so that over the course of a month, employees work an average of 40 hours per week; an employee can work 70 hours one week without getting overtime pay, so long as he only puts in 10 the next.
Organized labour has a significantly different interpretation, claiming the move is intended to allow employers to “side step overtime, the 40-hour week and eight-hour day.”
But Wynn-Williams points out any flex scheduling of this nature must be done in advance and requires the agreement of the employee. He also commended the new harsher penalties for employers who violate the ESA.
“We think that there are a few small business that will break the law and rather than make the ESA so rigid and so complex that it hurts everyone,” it should be simplified but tougher penalties should be introduced to discourage violations, he said.
Previously, employers weren’t fined for a first violation of employment standards, received a $150 fine for a second offence and $250 for a third offence. Under the new act, a first offence will bring a $500 fine, $2,500 for a second violation and $10,000 for a third infraction.
Worker’s compensation
Changes to the workers’ compensation system, which include a reduction in benefits, will ensure the financial viability of the system, said Bruce.
Forecasts predict the B.C. WCB could accumulate a deficit of more than $900 million by 2005.
The changes will bring rising costs under control, said Bruce. A new way to calculate benefits (workers will now receive 90 per cent of net average earnings as opposed to 75 per cent of gross income), and a revised inflation-indexing formula are being introduced.
And, workers will only be able to claim stress leave for unexpected or traumatic events, and not for chronic stress, “caused by the pressures encountered in daily personal and work life.” Only three provinces provide compensation for chronic stress.
