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Workplace violations widespread in Ontario, government report says

Study commissioned by the Ministry of Labour says poor enforcement leaving vulnerable workers exposed.

Thestar.com
July 27, 2016
By Sara Mojtehedzadeh

Ontario faces “serious” and extensive problems enforcing basic employment rights, leaving thousands of vulnerable workers open to abuse, a government-commissioned study of workplace standards says.

The report is the Ministry of Labour’s first stab at figuring out how to provide better protection for low-wage, contract and temp workers. The carefully worded, 300-page analysis released Wednesday stayed mostly clear of recommending specific fixes - but made two exceptions: on loopholes that mean some employees don’t get basic entitlements, and on shoddy enforcement of existing protections.

“We conclude that there is a serious problem with enforcement of (Employment Standards Act) provisions,” the report reads. “While most employers likely comply or try to comply with the ESA, we conclude that there are too many people in too many workplaces who do not receive their basic rights.”

The Star has reported extensively on that issue. An investigation earlier this year showed that Ontario workers filed thousands of successful claims against bosses who owe millions of dollars in unpaid wages and entitlements. But since 2009, the ministry has failed to collect about one-third of stolen wages in the province - leaving thousands of often low-wage workers out of pocket, the Star found.

“In my opinion, we don’t have enforcement,” construction worker and professional painter Veronica Torres said. “We don’t have nobody checking what is happening in construction. And the workers know that. I feel, definitely, if the government wanted to change this area, they need to make stronger enforcement.”

The latest findings are part of the government’s interim report on its so-called Changing Workplaces Review, and suggest there is “significant non-compliance with basic legal obligations” at employers across Ontario. The study also reveals that over 90 per cent of the approximately 15,000 complaints made to the ministry are filed by people who have left or lost their jobs - bolstering criticism that workers struggle to come forward without risking their livelihood. When these complaints are investigated, around 70 per cent prove to be valid, the report says. Ministry blitzes regularly find violations in over 75 per cent of workplaces inspected.

“I think this is fundamentally about making lives better and creating a level playing field,” said Deena Ladd, head of Toronto-based labour rights group, the Workers’ Action Centre. “Clearly enforcement is not working. Clearly people are not accessing their rights. Clearly there are massive gaps and loopholes that are not ensuring there is a level playing field for decent employers and for workers.”

Labour Minister Kevin Flynn said he hoped more resources could be devoted to targeting law-breaking bosses and allowing good employers to prosper.

“If we can zero in on problem areas, I think we can get a lot done,” he told the Star.

The Changing Workplaces Review is the first time the province’s employment and labour laws have been examined at the same time - and is probably the largest review of work ever conducted in Ontario, Flynn said. The interim report was due to be released in early spring, but has faced significant delays. The review is still accepting input from the public and final recommendations are not expected until the end of the year.

“I think what has probably happened is that we underestimated the interest, and we underestimated the amount of time to deal with both of these (set of laws) at the same time,” Flynn said.

“If it takes a few extra weeks to get a better product, I’m not going to rush it out the door. We know that the opportunity to do this again may be a long time coming.”

In addition to tackling enforcement, the report sets out an early position on loopholes that exempt at least 45 occupations from basic rights like minimum wage and overtime pay. Although the report says it will not recommend the loopholes be completely eliminated, it does suggest several of them may warrant “immediate changes.” These include exemptions for IT workers, pharmacists and building superintendants - whose plight was highlighted last year by the Star.

The remaining exemptions should be carefully reviewed by government with input from both workers and employers, the report says.

“Some exemptions are decades old and have been present in some form since 1944,” it reads. “Many were introduced ad hoc over the years, largely as a result of lobbying by stakeholders in opaque processes and with no or little significant employee involvement.”

A range of other issues including freedom of association, erratic scheduling and temp agency work also featured prominently, but the report mostly limited itself to summarizing what it heard in public consultations and written submissions. It also commissioned academic research into the scale of precarious work in Ontario, which showed that temporary employment has grown faster than any other form, expanding by 3.5 per cent annually since 1997.

“Part of the reason we’re doing the report in the first place is the world of work is changing so quickly in ways we could never have imagined,” Flynn said.

Employer association, the Ontario Chamber of Commerce, said in a statement it was “concerned” about the impact of many policy options set out in the study and urged government to “consider the impact these changes will have on Ontario’s competitiveness and workers.”

But Chris Buckley, head of the Ontario Federation of Labour, called on the government to adopt a “bold and ambitious plan to tackle precarious work.”

“To the critics out there, they need to take a look at the landscape of this province. It has shifted dramatically,” he added. “There has been enormous job loss for over a decade now and the only jobs that have been created are low-paying jobs, temporary hiring agencies, contract workers. And you can’t build a strong economy on those types of jobs.”