Canadian HR Reporter

CANADIAN HR REPORTER CANADIAN HR REPORTER February 24, 2014 February 24, 2014 14 NEWS NEWS ongoing participation and out- comes communicated helps em- ployees cope with the fl ux and change in an uncertain industry. When Corus asked people to take salary cuts and days off , employees understood the fi s- cal situation was real and why they needed to participate in the reduction. Even in tough times, employee survey results showed Corus employees appreciated hearing about the situation fi rst, rather than reading about it in the Globe and Mail. Place: Corus recognized space is a luxury and expense and should not be wasted. Instead of massive studios and rows of high-walled cubicles, Corus's location repre- sents its values, vision and brand in a very tangible way. e facility is light and open, with glass or low-rise walls where possible, gathering areas for teams and groups, displays of employee art, Nelvana and other units rec- ognized in naming and decorating meeting rooms, nearly any spot useable as a studio, and a built-in fun slide. It is designed to create a sense of community, promote pride in both company and individual ac- complishment, and to facilitate teamwork. It is in sync with the culture — the way things are done around here. While there are interesting practices in each of the categories above, what stands out is the CEO, with the assistance of human re- sources, is a key integration re- source, choosing not to focus on just one area. For the business to be successful, it must direct all of its resources (cultural, people, budget and business strategy, and real estate) in ways that support its vision. is integration focus at Corus has nurtured a culture that has supported growing through many acquisitions, weathering changes in an uncertain indus- try, and successfully developing a business niche. Karen Gorsline is SCNetwork's lead commentator on strategic capability and leads HR Initiatives, a consult- ing practice focused on facilitation and tailored HR initiatives. Toronto- based, she has taught HR planning, held senior roles in strategy and poli- cy, managed a large decentralized HR function and directed a small busi- ness. She can be reached at gorslin@ pathcom.com. CORUS < pg. 13 Integration focus Integration focus Ontario blazes provincial pension plan trail Ontario blazes provincial pension plan trail But small business warns new plan could create fi nancial burden for employers But small business warns new plan could create fi nancial burden for employers BY SABRINA NANJI IF ONTARIO'S intentions for a provincial pension plan move for- ward, workers will have another means to bolster their nest eggs. But some employers say if the pro- vincial plan goes ahead, they won't be able to keep their heads above water. At the end of January, Ontario Premier Kathleen Wynne an- nounced the government would introduce details of its own pen- sion plan this spring. e move came shortly after the federal gov- ernment balked at an attempt to expand the Canada Pension Plan (CPP). While details of the Ontario pension plan have yet to be re- leased, the government has struck a panel of pension experts — headed by former prime min- ister Paul Martin — to fi nalize the details. Ontarians are not saving as much as they should in order to retire comfortably, according to Wynne. The latest longevity reports have indicated Canadians are living longer, pointing to a need to either save more or retire later. Last summer, the Canadian Insti- tute of Actuaries commissioned its first-ever study looking at mortality tables for Canadian workers. Their findings? Canadians are living longer — the average 60-year-old man is now expected to live for an additional 27.3 years, up 2.9 years, while a 60-year-old woman is expected to live an ex- tra 2.7 years, up to 29.4 additional years. "We are taking action now to address this urgent need," said Wynne. " is will be a quick process. Protecting people in their retire- ment is a key part of our economic plan to invest in people and to build the right infrastructure and create a business environment that is innovative and is dynamic." What is known for now is that a pension plan would be governed by an arm's-length agency, similar to the Healthcare of Ontario Pen- sion Plan (HOOPP), said Keith Ambachtsheer, director of the Rotman International Centre for Pension Management and a member of the government's ad- visory panel. "We have to stop using words like 'defi ned benefi t' and 'defi ned contribution' because they really don't describe the future," said Ambachtsheer. "(It's) a retirement savings plan where somewhere down the road you can buy de- ferred annuities." But not everyone is on board with the idea. " e only thing that could be worse for small business than a Canada Pension Plan expansion would be the creation of a provin- cial version of it," said Dan Kelly, president and CEO of the Cana- dian Federation of Independent Business (CFIB), adding the pen- sion plan is simply another payroll tax small businesses simply can't aff ord. But that is not the case, said Wynne. " is is not a tax, this is about an investment in the future. It is money that goes into a plan that will allow people to retire more securely and this is not money that goes into the provincial treas- ury," she said. "Taxation implies that some- how this is money that goes into the provincial treasury to be spent by government. It's money that goes into plans, money that is then invested in the economy, and then creates a return for people in the future. So this is, by defi nition, an investment in the future." Another concern is an Ontario- based pension plan would aff ect competitiveness between Ontario and other provinces. While Wyn- ne has extended the invitation to join a provincially regulated na- tional pension program to other provinces (and piqued the interest of at least Prince Edward Island and Manitoba), if Ontario ends up fl ying solo, the consequences could be dire for independent businesses, said Kelly. "If other provinces didn't sign up, Ontario businesses would end up paying more than their coun- terparts in other provinces into retirement savings," he said. "If they force anyone to do this, then it should be on the employee side, not the employer side." But the need to have another retirement savings option is clear, said Kelly, whose preference is to have a pooled registered pension plan (PRPP). Pooled plans are available to employees whose workplaces do not off er pension plans. In 2012, the federal government passed the Pooled Registered Pension Plan Act, which passed the buck of pension management over to a third-party administrator. In December 2013, Quebec introduced the Voluntary Retire- ment Savings Plan Act, which makes it mandatory for employers of a certain size without pension plans to automatically enroll em- ployees in a PRPP. e legislation comes into eff ect July 1. "We like the PRPP vehicle, rec- ognizing it's not a universal fi x," said Kelly. "It allows employers or employ- ees, who have the capacity, to have access to a much better retirement savings tool than they've had in the past." One-third of CFIB's member- ship have indicated they would be willing to implement a PRPP, said Kelly. The remaining two-thirds, however, do not have the fi nan- cial capacity to implement a third-party retirement option — and being forced to do so could mean less money available for salaries and other benefi ts. Despite these arguments, oth- ers have touted an Ontario pen- sion plan as necessary. Take Ber- nard Dussault, a pensions expert and former chief actuary behind the CPP, who said in order to produce a well-oiled pension plan, Ontario should model its program in the same vein as the federal plan. " e main features being that it be mandatory, it be a defi ned benefi t plan as similar as possible to the Canada Pension Plan. at it be fully funded, because any amendment to the Canada Pen- sion Plan shall, by virtue of a re- cent amendment, be fully funded," said Dussault. Of particular concern is other provinces might not be able to handle such a heavy burden and cannot follow suit. "It's a big undertaking. Because Ontario is big, it's fine — but any of the Maritime provinces I think would not have the fi nan- cial strength to go there," said Dussault. " is is a big organiza- tion. I'm not saying it's impossible — it's a big institute to put on its feet." First , a middle ground needs to be established, said Ambachtsheer. "Given that CPP enhancement is off the table and given that PRPPs are purely voluntary — are basically non-entities — you need something that's in between those two," he said. Ontario's pension plan adviso- ry group is slated to report back ahead of the provincial budget this spring, after which a plan would have to be approved at Queen's Park. "It's a big undertaking. Because Ontario is big, it's fi ne — but any of the Maritime provinces I think would not have the fi nancial strenth go to there."

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