Temp work growth is 'alarming' and changes are coming, says Ontario labour minister

Kevin Flynn says time to get companies to hire full-time workers - like they used to.

Thestar.com
Sept. 11, 2017
By Kristin Rushowy

Calling the rise in temporary work "alarming," Ontario's labour minister is promising changes to legislation that will encourage companies "to return to the day when they hired people full time."

"We looked at a number of avenues ... to change" the reliance on temporary workers, Kevin Flynn said at Queen's Park on Monday, following revelations in a Star investigation showing how temporary agencies have proliferated across the province, giving workers no job security and little training. Statistics show temp workers are also more likely to be injured in the workplace.

"People in Ontario expect to have full-time work if they want it ... what we are saying is that if you are doing the same job in the province of Ontario, there is no justification for any differential you should be paid by the company."

The Ontario government's Bill 148, which has passed first reading and gone out for consultation this summer, addresses some concerns around temporary work, including pay, scheduling and unionization.

One area left unaddressed by the proposed legislation is the fact that if a temp worker is injured on the job, their agency, not the workplace where they were actually injured, is liable to the Workplace Safety and Insurance Board. This, critics argue, is one of the biggest incentives for companies to use temporary help agencies in the first place.

Flynn said his ministry is looking into the issue.

One option that was considered - but dismissed - was to limit the number of such employees in any one workplace because it "seemed like it would be a bureaucratic nightmare. We figure we'd get right to where the issue is - that we take away the incentive to use temporary help agencies, to stop the flourishing of this business. We believe that is far more effective."

If workers hired by a company or brought in temporarily are making the same hourly rate, "there is no incentive ... to go through an agency."

"Right now, you'll have somebody that is making $20 an hour standing next to somebody who is making $12 an hour, doing essentially the same work. We just say that's not on in the province of Ontario, and the way we plan to address that is by the equal pay provisions."

Research commissioned by the Ontario government found that temp workers are vulnerable and among the most "precariously employed of all workers."

The Star's Sara Mojtehedzadeh went undercover at Fiera Foods, an industrial bakery in North York that has racked up numerous health and safety infractions and where a worker died last year.

She and investigative reporter Brendan Kennedy found that temporary agencies have increased by 20 per cent in Ontario in just the past 10 years - with 1,700 now in Greater Toronto. Companies use them to lower costs and reduce their responsibilities for employees. Firms also avoid full liability - and cut their insurance premiums - at the workers' compensation board for accidents that occur on the job because the responsibility is transferred to the temp agency.

It is unclear how equal pay provisions would change things at Fiera Foods, where Mojtehedzadeh found almost every worker she met on an assembly line was temporary and had been brought in through an agency.

Temporary agencies themselves are not the problem, Flynn said, as "they've existed for years and some of them do an incredible job and some people make an awful lot of money working for temp agencies. What we are concerned about is the proliferation of temporary help agencies taking the place of what is essentially full-time employment."

He said the Star's investigation "was a clear indication that there's a problem out there that needs to be solved."

"We've known that for some time in the Ministry of Labour, these are the problems we go out an investigate on a daily basis, so I think (the stories) injected a bit of reality in the situation in a way we couldn't do at the Ministry of Labour. Reading it on the front page of a large newspaper I think really did help."

The province's ultimate goal is to "take any financial incentive to use a temporary help agency unless it's a legitimate need," he said.

"We're going to make it equal for somebody to hire somebody either through an agency or as a full-time employee."

NDP Leader Andrea Horwath said the Liberal government has twice tried to improve the lives of temporary workers over the past 14 years "and they've failed miserably. So then we see the horror stories that we've heard about, the loss of life … this has been the regime in Ontario for 14 years now. It's not acceptable and the New Democrats made commitments before the Liberals even brought Bill 148 forward around making sure that every worker in the province is paid the same.

"So if temp agencies still exist, they're going to have to exist in a different way than to utilize low wages as a way to incent employers to use their services."

Ontario PC finance critic Vic Fedeli said, "Everybody in Ontario wants to know that there are full-time opportunities available and that you can work in a safe environment," he said. "I think everybody strives towards that."