Canadian HR Reporter

September 8, 2014

Canadian HR Reporter is the national journal of human resource management. It features the latest workplace news, HR best practices, employment law commentary and tools and tips for employers to get the most out of their workforce.

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Canadian HR RepoRteR September 8, 2014 6 News of person out there who is going to say, 'Well, if you provide me with a basic amount of income, I'm just going to quit and live on that.'" at is also an argument com- monly cited by critics — that money shouldn't be doled out to unemployed people for doing nothing, said Mulvale. " e critics say, 'Well, it's just giving people money for nothing — they'll just sit at home and be lazy and not be productive citi- zens.' Well, some of that already happens — welfare fraud, et ce- tera," he said. "But any research that's been done on fraudulent claims shows a very small percentage — two, three, four per cent. So in any kind of system, there are always people at the margins who are trying to game the system. But I guess the question to ask is, is the overwhelming majority of benefi - ciaries going to use the money for good purposes?" For Ernst, the answer is a fi rm yes — a basic income would en- able people to pursue higher edu- cation, as well as more entrepre- neurial initiatives, he said. "Another possible eff ect that it may have is it could create the ability for people to pay for great- er childcare, and then take on ad- ditional work," he said. "Now, the way social services systems and income support systems are set up across Canada is very often people can't do that because their income is cut, so they're kind of encouraged to stay home and take income support to look af- ter kids, as opposed to have help looking after the kids and pursu- ing work." It could also foster greater la- bour mobility, as workers could be better able to move out-of- province for a job, said Ernst. " ey may be able to better af- ford the travel costs and moving costs associated with moving as well," he said. "In that way, basic income could actually support business in helping people to move across the country to take on positions and jobs." Employees could have more leverage in the labour market as well, said Mulvale, as they would have a greater ability to turn down undesirable work. " ey'd have the ability to say no to poorly paid or poor-quality or dangerous or dirty work. And, all things being equal, wages for those jobs would have to go up or conditions improve," he said. "Another way of looking at it is the basic income would give em- ployees more fl exibility and that would work to the employer's ad- vantage in cases where they want people on a part-time basis, or for some parts of the year and not others. A basic income in place that would support people when they're not getting a lot of paid hours of work, it would still enable them to survive economically and to participate in the labour market on a fl exible basis." However, employers are go- ing to be worried about the po- tential cost of subsidizing such a program, and what their role in it would be, said Stapleton. "Employers are going to be worried about what's their stake in it, what do they have to pay… where's the money going to come from?" he said. "If it's not coming from them and if it's coming through person- al general income tax or general revenues, that doesn't really aff ect them — it only aff ects them in the abstract — and they're going to be happy about it because it stabilizes the lives of the people who work for them. "For high-value employers who are hiring people at much, much more than the poverty rate, it just has no eff ect at all. It just doesn't matter. And for employers that are trying to compete on the world stage, then it's only for the good — it's just like having health care. It makes Canada more competi- tive with other nations that don't have it." Even so, it's not likely to happen anytime soon — at least, not on a dramatic scale, said Mulvale. "In terms of a more generous, a more universal basic income… maybe $10,000, $20,000… I don't think we're going to see that any- time soon," he said. "But if we were kind of to take steps in that direction, realizing that maybe we're not in a full em- ployment economy any more… that would certainly have an impact." BasIC INCome < pg. 3 Incentives to work BaSiC inCoMe The court of public opinion IN 2013, the Pierre elliot trudeau foundation, in partnership with Concordia University in Montreal, conducted an environics poll of 1,501 Canadians about the issue of a guaranteed annual income. this was defi ned in the poll as every Canadian receiving a defi ned amount from the government each year. that amount would be clawed back for every dollar of income an individual earned. the program would be designed and implemented to ensure all Canadians had access to basic necessities, and this income would replace other forms of assistance such as welfare and unemployment insurance. the system would create an established income "fl oor" to ensure everyone has access to food, clothing and shelter. the survey results showed no clear majority opinion either for or against such a system; the poll found an almost 50-50 split between those Canadians who supported the idea and those who opposed it. Nearly one-half of the participants responded they would strongly (19 per cent) or somewhat (27 per cent) favour this type of policy, while the other half said they would somewhat (17 per cent) or strongly (25 per cent) oppose it. there were, however, clearer distinctions between the provinces and between high- and low-income earners. the concept received strong support in Quebec (55 per cent) and Vancouver (52 per cent), as well as among Canadians with household incomes of less than $100,000 (52 per cent). the concept was opposed by albertans (38 per cent) and Canadians earning $100,000 or more (39 per cent). do you favour guaranteed annual income for Canadians? Strongly favour 19% Somewhat favour 27% Somewhat oppose 17% Strongly oppose 25% Depends 6% Don't know/no answer 5% Source: The Pierre Elliot Trudeau Foundation/Concordia University Future-Proofing Your Organization Through Change Agility Jocelyn Bérard Global Knowledge Phil Buckley Change with Confidence Creative Courage: Challenge the Status Quo and Make Big Ideas Happen Welby Altidor Cirque du Soleil Be a Presentation Genius: Deliver Extraordinary Training Michael Bungay Stanier Box of Crayons Mark Bowden TRUTHPLANE™ Inc Featuring 2014 CSTD CONFERENCE & TRADE SHOW Toronto, ON | November 12-14 CSTD.ca/Conference Connect. Collaborate. Transform. Register today and use code HRREPORTER for $100 discount Register by Sept 30 and save! CONNECT with workplace learning professionals COLLABORATE across platforms, sectors, and industries to extend the influence of workforce learning TRANSFORM your learning and development programs to meet business needs Over the course of three jam-packed days you'll discover the solutions and strategies you need to meet your workplace learning goals through our unparalleled education sessions. It can't be all work and no play, though—you'll also have plenty of opportunities to learn from the experts, network, and share best practices with others from the workplae learning community. C M Y CM MY CY CMY K Hrreporter-sept2014.pdf 1 8/22/2014 12:54:36 PM

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