Canadian Labour Reporter

Ontario pension plan could cost jobs, hurt economy: survey TOrOnTO — Ontario's pension plan could have negative conse- quences for businesses, a new survey reports. On Feb. 19, the Ontario Chamber of Commerce (OCC) released a survey that indicated the Ontario Retirement Pension Plan (ORPP) could cost jobs and hurt the economy. According to the report, only 26 per cent of businesses in the province believe they can shoulder the financial burden associ- ated with the pension program. If faced with mandatory increased contributions under the ORPP, 44 per cent of surveyed businesses noted they would reduce their current payroll or hire fewer employ- ees in the future. "Businesses consistently tell us that they cannot afford this new, mandatory cost," said Allan O'Dette, president and CEO of the OCC, an independent organization that represents businesses. "To provide clarity to the business community and the public around the potential impact on jobs, investment and the broader economy, the government must conduct a comprehensive and publicly avail- able economic analysis of the new pension plan before it moves for- ward with implementation." Premier Kathleen Wynne introduced the ORPP after the federal government balked on expanding the Canada Pension Plan, saying Ontarians need another option to secure their nest eggs. Under the provincial pension rubric, employers and employees without a company pension plan will each make matching contri- butions of up to 1.9 per cent. Employers that provide defined ben- efit retirement plans will be exempt. The OCC noted most Ontarians are on track to maintain their standard of living in retirement and that the ORPP will punish em- ployers and employees who are already contributing to their secure retirement fund through non-defined benefit pension plans. "The ORPP is a blanket solution to a problem that requires a tar- geted approach," O'Dette explained. "A better approach would be to target the minority of households that are under-saving, such as pooled registered pension plans." The ORPP will be introduced in 2017, and phased in over two years. employers lower salary increases amid economic uncertainty OTTaWa — Amid economic uncertainty, Canadian employers are lowering their projections for salary increases in 2015, accord- ing to a new report. On Feb. 17, the Conference Board of Canada released its Mid-Year Pulse Check —part of its annual compensation planning outlook survey. In it, the independent research organization said falling oil prices, coupled with regional economic uncertainty will see em- ployers tightening their purse strings when it comes to salary. The average base salary increases for non-unionized workers is now expected to be 2.7 per cent, down from the original 2.9 per cent projected in the summer of 2014. According to Ian Cullwick, vice-president of leadership and hu- man resources research, many employers will be playing the wait- and-see game. "Many organizations are waiting to see how the economy fares before finalizing plans," he explained. "It is likely that we will see fur- ther reductions in salary increases — including pay freezes — from organizations in Alberta and Saskatchewan." In December of last year, employers in Saskatchewan and Alberta were still projecting average salary increases of 3.4 per cent and 3.3 per cent respectively, though both will likely see further downward revisions as the year progresses. And while salary growth predictions have been revised slightly downward for most other provinces, Ontario is the only region whose projection is still in line with its summer forecast. Retail and wholesale trade sectors are expecting the lowest in- creases, at 2.3 per cent, followed by education, health and commu- nications at 2.4 per cent. The report also noted there will be con- tinued reductions to projected pay increases in the energy sector. "The next few months will be challenging for employers as they balance the need to retain top talent with affordability," Cullwick said. lAboUr brieFs 2 Canadian HR Reporter, a Thomson Reuters business 2015 fOrMerlY ClV rePOrTs serving labour relations professionals since 1956 www.labour-reporter.com Published weekly by omson reuters Canada ltd. subscription rate: $595 per year Customer service Tel: (416) 609-3800 (Toronto) (800) 387-5164 (outside Toronto) fax: (416) 298-5106 email: carswell.customerrelations@ thomsonreuters.com Website: www.carswell.com director, Carswell Media Karen Lorimer Publisher John Hobel associate Publisher/Managing editor Todd Humber lead editor Sarah Dobson | (416) 649-7896 sarah.dobson@thomsonreuters.com news editor Sabrina Nanji | (416) 649-9348 sabrina.nanji@thomsonreuters.com news editor Liz Foster | (416) 298-5129 liz.foster@thomsonreuters.com Marketing Co-ordinator Keith Fulford | (416) 649-9585 keith.fulford@thomsonreuters.com © 2015 Carswell, a division of omson Reuters Canada Ltd. 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Labour Reporter Canadian www.labourreporter.com Photo: Enrique Castro-Mendivil (Reuters) lAboUr lens Protestors in Lima, Peru, march against a bill and law project that would allow companies in the red to reduce up to 20 per cent of a worker's annual pay.

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