Canadian HR Reporter

February 6, 2017

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 February 6, 2017 18 INSIGHT WHITE-OUT WILLOUGHBY, AUSTRALIA — e diff erence between on-air and off -air can be quite revealing, as an Australian newscaster found out recently. Moments before a show was set to go live, leaked footage showed newscaster Amber Sherlock of 9 News becoming annoyed when she realized her fellow journalist, Julie Snook, and their guest, psychologist Sandy Rea, were all wearing white, according to the Daily Mail. Sherlock demanded Snook put on a jacket, saying she had asked her to do so earlier: "Come on, I told you two hours ago." e two went back and forth on the issue, and at one point, Snook off ered to leave: "I can just head on out and get back to work. I'm fl at chat. I genuinely forgot." Despite the heated exchange, the two women were all-smiles when they went on air — with Snook wearing a black jacket. PLANE CRASH, ANYONE? GROTON, CONN. — A United States company is offering ex- treme survival classes to boost team morale, according to the CBC's As it Happens. Workers can participate in a fake airplane crash into water, for example, complete with thunder and light- ning. Participants are buckled into a simulator that goes up in the air before falling into a tank of water and going into a full invert- ed position. ey then must fi nd a way out. As for those who fear being labelled not a team player, the rest of the group helps them get through their fear, said Maria Hanna, president of Survival Sys- tems USA. "It doesn't force them to participate but actually pulls them into the group even more. ey were actually, in some ways, looked at in a slightly better light because they were willing to ver- balize their fears." WORKPLACE GONE BAD CALLAWAY, FLA. — A funeral home in Callaway, Fla., was a house of horror recently when 16 decomposing bodies were discovered there, according to the Washington Post. Six of the bodies had been kept in the main part of Brock's Home Town Fu- neral Home while 10 more were decomposing inside a cooler set at 16 degrees Celsius. None of the bodies had been embalmed, said the Bay County Sheriff 's Offi ce. Funeral director Gregory Dunphy and the mortuary's manager, Feli- cia Boesch, were charged with six and 10 counts of unlawful pres- ervation and storage of human remains, respectively. But Dun- phy blamed Boesch. "A couple times she said, 'I'll be in tonight, I'll do cremations and make those remains go in the proper temper- ature-controlled area.' And I have to rely on her as a person of integ- rity to live up to her word, which obviously she did not… I said, 'My God, Felicia. It's hell down here. We've got to do something.'" NOT BUDGING SAN DIEGO, CALIF. — Unhap- py that NFL team the San Diego Chargers have decided to relocate to Los Angeles, several moving companies in San Diego are just saying no, according to the San Diego Union-Tribune. More than 25 local movers have pledged on the website www.wewontmove- yourchargers.com that they will not help the football team make the switch. "Dear Chargers, we won't move you to Los Angeles. Love, your local San Diego mov- ing companies," announces the website. W EIRD ORKPLACE THE Vol. 30 No. 2 – February 6, 2017 PUBLISHED BY Thomson Reuters Canada Ltd. One Corporate Plaza 2075 Kennedy Rd. Toronto, ON M1T 3V4 ©Copyright 2017 by Thomson Reuters Canada Ltd. All rights reserved. CANADIAN HR REPORTER is published 21 times a year. Publications Mail – Agreement # 40065782 Registration # 9496 – ISSN 0838-228X Director, Media Solutions, Canada: Karen Lorimer - (416) 649-9411 karen.lorimer@thomsonreuters.com EDITORIAL Publisher/Editor in Chief: Todd Humber - (416) 298-5196 todd.humber@thomsonreuters.com Editor/Supervisor: Sarah Dobson - (416) 649-7896 sarah.dobson@thomsonreuters.com News Editor Marcel Vander Wier - (416) 649-7837 marcel.vanderwier@thomsonreuters.com Employment Law Editor: Jeffrey R. Smith - (416) 649-7881 jeffrey.r.smith@thomsonreuters.com Labour Relations News Editor: John Dujay - (416) 298-5129 john.dujay@thomsonreuters.com Web/IT Co-ordinator: Mina Patel - (416) 649-7879 mina.patel@thomsonreuters.com ADVERTISING Account Executive: Nicholas Cholodny - (647) 537-4705 nicholas.cholodny@thomsonreuters.com Production Co-ordinator: Pamela Menezes - (416) 649-9298 pamela.menezes@thomsonreuters.com MARKETING AND CIRCULATION Marketing & Audience Development Manager: Robert Symes - (416) 649-9551 rob.symes@thomsonreuters.com Marketing Co-ordinator: Keith Fulford - (416) 649-9585 keith.fulford@thomsonreuters.com PRODUCTION Manager, Media Production: Lisa Drummond - (416) 649-9415 lisa.drummond@thomsonreuters.com Art Director: Dave Escuadro SUBSCRIPTIONS Annual subscription: $175 (plus GST) GST#: 897 176 350 RT To subscribe, call one of the customer service numbers listed below or visit www.hrreporter.com. Address changes and returns: Send changes and undeliverable Canadian addresses to: SUBSCRIBER SERVICES Canadian HR Reporter One Corporate Plaza 2075 Kennedy Rd. Toronto, ON M1T 3V4 CUSTOMER SERVICE Call: (416) 609-3800 (Toronto) (800) 387-5164 (outside Toronto) Fax: (416) 298-5082 (Toronto) (877) 750-9041 (outside Toronto) Email: customersupport. legaltaxcanada@tr.com LETTERS TO THE EDITOR todd.humber@thomsonreuters.com CHRR reserves the right to edit for length and clarity. Todd Humber EDiTOR'S NOTeS The high cost of golden handcuffs B reaking up is hard to do. But leaving a job, well that's just plain complicated. Terminations and resignations carry their fair share of head- aches for employers and employ- ees alike. I was reminded of that this morning when looking at the cover of this issue of Canadian HR Reporter and fl ipping through the Globe & Mail. First, this publication — editor Sarah Dobson looked at the court ruling in Styles which put long- term incentive plans (LTIP) and what happens to bonuses upon termination in the spotlight. In 2015, an Alberta worker was awarded nearly $450,000 after being dismissed without cause. at ruling hinged on three words in the contract — they stated the LTIP bonus "may" be forfeited if the employee was terminated. But the rest of the contract made it clear, as many do, that "active" employment is an abso- lute condition for the bonus to be paid out — generally speaking, if you're not an employee on the date it's paid, you're not entitled to the cash. e employer appealed and the ruling was overturned, putting an end to what Sheena Owens, a lawyer at Gowling in Calgary, called a "very scary" situation for employers. Second, the Globe & Mail out- lined the saga of Hunter Harri- son's surprising decision to walk away from his job as CEO of Ca- nadian Pacifi c Railway (CPR). e separation agreement he signed means he's leaving $118 million in stock and benefi ts on the table — including forfeiting his pension, according to CPR. (Don't shed too many tears for Harrison, though. He gets US$4.8 million for a 2014 stock award plus his unknown 2016 cash bonus, according to the Globe.) Financially, Harrison can aff ord to walk away from his gig. But for the vast majority of long-term employees in Canada, this isn't a viable option. Once they hit the 10-year mark (or so) at the same employer, the prospect of resign- ing can become daunting and lead to moaning and groaning about the so-called "golden handcuff s." ey feel chained to their em- ployer because they've built up seniority, their pension invest- ments are growing and things are just comfortable. While employment lawyers will be quick to point out there is no "rule of thumb" for calcu- lating severance in cases of dis- missal without cause, many em- ployers successfully follow the one-month-per-year-of-service rule. erefore, a worker with 15 years at an organization would be walking away from more than one year's pay if she quits. With things like mortgage pay- ments and child's tuition on the books, leaving that kind of secu- rity to take a new gig can be daunt- ing — and downright unpalatable. If an employer really wants to lure a new hire from long-term, secure employment, a signing bonus can be used. But that car- ries its own set of risks for the new employer if things don't pan out, including an expensive ruling that the worker was induced to leave his previous position. In 2015, Canadian Employ- ment Law Today reported on the case of Rodgers v. CEVA Freight Canada Corp. It involved a truck- ing executive who was awarded nearly $350,000 after three years' service. It's a complicated case, but one of the factors cited by the court in awarding damages was the fact there was "some measure of inducement" that led Rodgers to leave his previous employment. "(The new company) wooed him with an attractive fi nancial package and signing bonus while he was still involved," wrote editor Jeff rey R. Smith. In some cases, the risk of a fi nd- ing of inducement can be nullifi ed by the simple probationary peri- od. In Nagribianko v. Select Wine Merchants Ltd., a worker was awarded four months' pay in lieu of notice after being fi red without cause after less than six months on the job. e lower court ruled the worker was induced to join the employer, but that notion was quashed on appeal. " e appeal court also found (the employer) could not have in- duced (the worker) to come work for the company, as the existence of a probationary period makes it clear that permanent employment isn't guaranteed and shouldn't be expected," wrote Smith. So, an employee looking to jump ship would want to either wipe out the probationary period as a condition of signing or per- haps negotiate a minimum sever- ance package much higher than common law or statutory norms if things don't work out. It's compli- cated to negotiate, and it's the rare employer who is willing to pony up these kinds of guarantees. Golden handcuff s are the big- gest reason why many firms, especially established ones, are clogged with long-tenured staff who may not be overly engaged, aren't really interested in produc- tivity improvements and don't feel the need to go the extra mile anymore. It's no stretch to say that fi xing this, and mitigating the damage it's causing to the bottom line, is one of the greatest challenges fac- ing HR departments and manage- ment alike. FALSE ALARMS TORONTO — Considering the risks, trust is hugely important among fi refi ghters. But that creed was broken last summer when a Toronto fi refi ghter apparently stole from his colleagues — using false alarms. Fire crews received calls about fi res and responded accordingly, but when they arrived, there were no emergencies. Returning to the fi re station, they discovered their cellphones, watches, jewelry, credit cards and iPads were stolen, according to the Toronto Star. On one occasion, the district chief returned to the fi re station early and "caught the person in the act of leaving the station," said Toronto fi re union chief Frank Ramagnano. A 10-year veteran, Joshua Pittarelli-Bucks has since been charged with three counts of break-and- enter and false alarm of a fi re, along with public mischief and possession of crack cocaine. Already on leave at the time of the break-ins, the fi refi ghter was ordered to reside with a surety and attend a residential treatment centre. He was also ordered not to attend any fi re hall in Toronto as part of his bail conditions. Credit: koya979 (Shutterstock) . Six of the obviously she did not… I said, 'My broken last summer when a Toronto fi refi ghter apparently stole from his colleagues — using false alarms. Fire crews received calls about fi res and responded accordingly, but when they arrived, there were no emergencies. Returning to the fi re station, they discovered their cellphones, watches, jewelry, credit cards . On one occasion, the district chief returned to the fi re station early and "caught the person in the act of leaving the station," said Toronto fi re union chief Frank Ramagnano. A 10-year veteran, Joshua Pittarelli-Bucks has since been charged with three counts of break-and- enter and false alarm of a fi re, along with public mischief and possession of crack cocaine. Already on leave at the time of the break-ins, the fi refi ghter was ordered to reside with a surety and attend a residential treatment Credit: koya979 (Shutterstock)

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