Canadian Payroll Reporter

October 2017

Focuses on issues of importance to payroll professionals across Canada. It contains news, case studies, profiles and tracks payroll-related legislation to help employers comply with all the rules and regulations governing their organizations.

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4 Canadian HR Reporter, a Thomson Reuters business 2017 PM #40065782 News in Brief A look at news, facts and figures shaping the world of payroll professionals Workplace flexibility top priority for jobseekers: Survey › MILWAUKEE — Flexibility in the workplace is a top priority for today's jobseekers, according to a new survey. The research from ManpowerGroup Solutions found that nearly 40 per cent of individuals looking for jobs said workplace flexibility was one of the top factors they consider when making career decisions. The firm surveyed close to 14,000 individuals in 19 countries. It found that flexible start and end times, as well as the ability to work from home or another location the employee chooses are generally the most desired types of flexible workplace policies. Workplace flexibility, however, is more than working away from the office. "It includes all types of working arrangements, from when to take breaks, working from home or caregiving leave," said Kate Donovan, senior vice-president of ManpowerGroup Solutions and president of Global RPO. "While no employer can accommodate every option, they can provide a range that appeal to a variety of candidates," she said. The study said there are a number of local factors behind the desire for more flexibility, including the presence of multinational companies or unions, the influence of technology firms, the workforce composition (such as the proportion of millennials), and congestion, infrastructure or public transportation that can affect commuting times. "It's clear that candidates across the globe seek a way to achieve 'One Life,' which means integrating work and home life. Organizations need to be ready to drop old work models that emphasize presenteeism over performance," said Donovan. "It's time to shift the needle — employers who meet candidate expectations around schedule flexibility have the advantage in recruiting and retaining the best talent," she said. Nearly half of federal workers having issues with Phoenix: Report › OTTAWA — Almost half of all federal public- sector workers paid through the government's Phoenix payroll system have lodged a complaint about their pay with the government, CBC News reports. As of early August, 156,035 federal workers out of a total of 313,734 paid through Phoenix had been waiting at least 30 days for the government to correct a pay problem, according to data CBC says a government source gave to its French-language counterpart Radio-Canada. The federal government has been struggling with its Phoenix pay system since it began rolling it out in Feb. 2016. Thousands of workers have been overpaid, underpaid, or not paid at all. It has also had difficulty processing pay requests on time. Earlier this year, the government announced that it would spend an extra $142 million to address problems with Phoenix. The money is going toward hiring additional staff to process pay transactions and implement collective agreements, and investing in new technology to make the system more efficient. The government also said it would keep open for the rest of the fiscal year temporary pay centre satellite offices to help speed up the length of time it takes to pay employees. Last year, it opened offices in Gatineau, Montreal, Shawinigan and Winnipeg, as well as a national call centre in Toronto, to help staff at the pay centre in Miramichi, N.B. In August, Prime Minister Justin Trudeau visited New Brunswick to personally thank workers for their efforts on the Phoenix file. "People are working with a tremendous level of creativity and excellence to get ahead of this problem," he told a news conference. The system was intended to standardize how federal employees are paid across the country and save money by streamlining transactions. Salaries expected to rise by 2.3 per cent in 2018: Survey › TORONTO — Employers in Canada expect sala- ries to rise by an average of 2.3 per cent next year, a new survey finds. The annual survey of Trends in Human Resources by consulting firm Morneau Shepell said employers are relatively optimistic about the coming year. Actual salary increases for 2017 averaged 2.2 per cent and the current inflation rate is about one per cent, it said. "Those expecting better financial performance in the coming year outnumber those expecting weaker performance by four to one," said Michel Dubé, a principal in the company's compensation consulting practice. "Despite this optimism, employers are still cautious about salary increases, perhaps reflecting a concern that rising interest rates may dampen economic growth next year." Sectors expecting higher than average salary increases in 2018 include utilities (2.9 per cent), manufacturing and wholesale trade (2.7 per cent), as well as finance and insurance (2.7 per cent). Lower than average increases are expected in industries such as mining and oil and gas extraction (0.8 per cent), public administration, health care and social assistance (1.7 per cent), and educational services (1.9 per cent). On a provincial basis, Alberta and Prince Edward Island are expected to have the lowest salary increases next year, at 1.8 and 1.9 per cent respectively, while Quebec is expecting the highest, at 2.6 per cent. Salary increases in other provinces will be close to the norm. The survey also asked human resources (HR) leaders about their top priorities for next year. High on the list were building a high- performing workforce that adapts better to change, improving employee engagement, attracting and retaining employees with the right skills, helping their organization better adapt to ongoing change, and improving employees' physical and mental health. The survey found that more than 90 per cent of HR leaders had concerns about how well employees were prepared for retirement. In response, it said HR leaders are exploring a range of options, including providing better education for employees and allowing retirees to buy insurance at discounted costs through online retiree marketplaces. The survey, which was conducted in July, included input from 370 organizations employing 894,000 Canadians in a broad cross-section of industry sectors. Ontario employer fined, jailed for failing to pay wages › NEWMARKET, ONT. — An Ontario court has sentenced an employer to jail time and imposed a fine for failing to pay wages under the prov- ince's Employment Standards Act, 2000. In August, Justice of the Peace Carol L. Seglins sentenced Luai Namo, director of the corporation 674841 Ontario Inc., to 30 days in jail and issued fines totalling $40,000. In addition, the judge fined the corporation, which operated convenience stores attached to Shell gas stations in Scarborough $84,000 (or $6,000 for each of 14 counts). An employment standards officer had issued the employer 14 orders to pay wages, totalling $46,537.45. The amount owing to individual employees ranged from $400 to $5,000, all of which the ministry says remains outstanding. It states that 12 of the 14 claimants were making minimum wage. The court also imposed a 25-per-cent victim fine surcharge as required by the Provincial Offences Act. The surcharge goes to a special provincial government fund to assist victims of crime. Individuals convicted of contravening the employment standards legislation or regulations or of failing to comply with an order under the act could face fines of up to $50,000 or up to 12 months in jail, or both. For corporations, the fine may be up to $100,000. If the corporation has a previous conviction, the fine could be up to $250,000 and if there is more than one previous conviction, it could rise to $500,000.

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