Canadian HR Reporter

March 2018 CAN

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 MARCH 2018 26 INSIGHT Business case for gun control " If you can't win by reason, go for volume." That was Calvin's logic when his mom said he couldn't bring Hobbes, his stuff ed tiger, shopping. It works in comic strips and it often works in the real world too. Where it never works, though, is the corporate world. Cooler heads and fact-based analysis always prevail, something we all know as the dreaded business case. I actually adore business cases — taking the genesis for what seems like a great idea and sub- jecting it to fi scal scrutiny. So with all the turmoil south of the border on gun control, a ques- tion arose: Could the right to own a fi rearm actually withstand the scrutiny of a CFO's desk? (Full dis- closure: I'm not a gun fan. I don't think we need an outright ban, but I'm mystifi ed about the gun culture in the United States and why there is so much resistance to restrictions on military-style weapons and change in light of massacre after massacre.) I checked that bias at the door and sat down to do the business case — does gun ownership make economic sense for the U.S.? Contribution to the economy Guns are big business in the U.S. Massive, actually. There are 141,500 direct full-time equiva- lents (FTEs) in the gun industry, according to the National Shoot- ing Sports Federation (NSSF). at's roughly similar to the number of Americans working in oil and gas extraction (192,000 jobs) or apparel (145,300 jobs). It pales in comparison to some of the biggest sectors, including health care (14.3 million jobs) profes- sional and technical services (eight million jobs) and fi nance and in- surance (5.8 million jobs). But the gun industry pays wages of $5.85 billion (all dollars US) and has an economic impact of $20.2 billion, according to a 2017 report from the NSSF. e jobs are good- paying ones, too. Average wages and benefi ts are $50,423 and the industry has seen an 81 per cent increase in jobs since 2008. Direct costs But there are expenses that must also be taken into account. In 2017, there were 61,507 fi rearm- related incidents that led to the death of 15,592 people, according to the Gun Violence Archive. ( is doesn't include the roughly 22,000 Americans who committed sui- cide with a fi rearm.) All in, rough- ly 35,000 Americans are killed by guns each year. ere are direct costs to this carnage. The average bill for a gunshot victim who is treated in emergency and immediately released is $5,254, according to a new study from the John Hop- kins University School of Medi- cine. It analyzed 150,930 gunshot patients between 2006 and 2014. About one-third of gunshot victims (37 per cent) are admitted to hospital for at least one night. e average cost to treat these people is $95,887. at doesn't include any rehab costs once the person is out of the hospital. Al- most one in 10 gunshot victims who were brought to the hospital alive died either in the emergency room or after being admitted. e total direct annual cost to the economy in treating victims, according to the study, is $2.8 billion. Lost economic activity e median personal income of an American in 2017 was $865 weekly, according to the Bureau of Labor Statistics. at's $44,980 annually, assuming a 40-hour workweek. From our earlier research, we know 15,592 Americans were killed by gun violence (not count- ing suicides). So, annually, the lost economic activity to the U.S. economy in wages not paid is $701 million annually. If we also take the suicide victims into account, the number soars to nearly $1.7 billion. e national unemployment rate in the U.S. is about fi ve per cent — so if we assume the same percentage among victims, the real fi gure would be about $1.6 billion annually. Conclusion e direct annual benefi t is $20.2 billion. e direct annual costs are $2.8 billion in health care and $1.6 billion in lost productivity. So, $3.4 billion versus $20 billion. e gun industry is, economically, worth it. But wait. A CFO would point out a few things. First, we're not accounting for the full loss of earning potential. While I was unable to fi nd the average age of a gunshot victim, let's use 20 as a thumbnail average for the number of years of lost earning potential per victim. So this number is going to snowball. It's $1.6 billion per year for all the people who died in 2017. But we're missing the math on the people who died in 2016, in 2015, in 2014. In fact, the average person who was killed in 1998 by a gun would likely still work today. at number is really more like $32 billion in lost productivity an- nually. Second, I glossed over the indirect costs around rehab and post-hospital care. And I didn't account for lost productivity of workers who were injured and didn't die — lovely things such as post-traumatic stress disorder (PTSD), permanent disabilities and lost wages due to extended rehabilitation. Toss in $10 billion more, to be conservative. In other words, a $45-billion ask to generate $20.2 billion. Good luck getting that approved. More than numbers Of course, this story isn't about numbers. It's about people. Every single gunshot that rings out impacts the workplace, either directly through violence on the premises or indirectly as workers lose family, friends and colleagues. HR professionals know a com- pany's most valuable assets walk out the door at the end of every day. We have an absolute respon- sibility to do something — any- thing — to ensure they walk back in the next day and feel safe, se- cure and productive on the clock. BARGAIN BASEMENT RATES VANCOUVER – While several cities are keen to become the host city for Amazon's second headquar- ters, Vancouver got into hot water recently over its pitch. In a 50-page bid proposal, the city boasted that its tech workers have the "low- est wages of all North American tech hubs," according to the Na- tional Post. "Great, we're now the Walmart of tech workers in North America — cheapest prices ever," said Andrew Yan, director of the City Program at Simon Fraser Uni- versity. " at's a great place to start selling yourself." Unlike other cities, Vancouver was not prepared to of- fer tax incentives to Amazon, so it needed to draw attention to other enticements to create a "best-value proposition," according to James Raymond, manager of research and analysis at the Vancouver Economic Commission. "We are the lowest-cost tech hub in North America, and it would have been a huge error not to include one of our strongest economic arguments in the proposal." FLUSHED AWAY BALTIMORE – A hamster was at the centre of a dispute recently between an airline and a college student. "Pebbles" was set to travel with her owner, Florida student Belen Aldecosea, on Spirit Air- lines when Aldecosea was told her emotional support animal could not join her, according to Time. A Spirit employee appar- ently told Aldecosea to either give the animal away or fl ush it down the toilet. When the student could not fi nd someone to take the ham- ster or rent a car instead of fl ying, she did just that. But Spirit denied the toilet comment. "At no point did any of our agents suggest this guest (or any other for that matter) should fl ush or otherwise injure an animal. It is incredibly dishearten- ing to hear this guest reportedly decided to end her own pet's life." NO MORE KISSES MORETTE, FRANCE – A mayor in France has decided to break with tradition when it comes to greeting her 73 colleagues every morning. Instead of giving the ex- pected kiss on the cheek or "la bise," Aude Picard-Wolff of Morette sent an email saying she would prefer to shake hands, according to the Daily Mail. In France, men gener- ally give the kiss greeting to close friends or family, while women are expected to give the greeting more broadly. It "always felt wrong to be doing the bise with people I barely knew," said Picard-Wolff . "From now I would like to shake hands, like men do... is is a minimal, but daily issue of gender equality." JUST A FEW YEARS LATE VICENZA, ITALY – Sometimes it might feel like it's taking forever for a package to arrive by mail. And for residents of a northern town in Italy, that sentiment is more than true. A postal worker was arrested recently after police found more than 1,100 pounds of undelivered mail hidden away in his garage in Vicenza, according to Reuters. Police were called in after workers from a recycling plant went to empty the 56-year- old's garage and found 43 yellow plastic postal containers contain- ing letters, bills, bank statements and electoral pamphlets dating back to 2010. Despite the delay, the Vicenza postal service prom- ised to deliver the outdated mail. FOWL PLAY ERITH, U.K. – Fast-food chain KFC is facing a chicken crisis in the United Kingdom, with a new supplier failing to deliver the much- needed fowl. As a result, at least 600 of the 900 outlets have had to close temporarily. But some employees have decided to take matters into their own hands, judging by a video that apparently shows work- ers carrying bins fi lled with black plastic bags of chicken into the back door of a KFC in Erith, U.K., according to the Daily Mail. Danny Mercer, who fi lmed the clip, claims he was told to "F*** off " by the employees when they saw him fi lming. A KFC spokesperson said it was aware of the video and in- vestigating. "When it comes to the safe handling and transport of food, we have strict policies in place, so we're investigating this urgently and will take any necessary steps… food safety remains our top priority." Credit: Valentina_S (Shutterstock) into their own hands, judging by a video that apparently shows work- ers carrying bins fi lled with black plastic bags of chicken into the back door of a KFC in Erith, U.K., . Danny Mercer, who fi lmed the clip, claims he was told to "F*** off " by the employees when they saw him fi lming. A KFC spokesperson said it was aware of the video and in- vestigating. "When it comes to the safe handling and transport of food, we have strict policies in place, so we're investigating this urgently and will take any necessary steps… food safety remains our top priority." Vol. 31 No. 3 – March 2018 PUBLISHED BY Thomson Reuters Canada Ltd. One Corporate Plaza 2075 Kennedy Rd. Toronto, ON M1T 3V4 ©Copyright 2018 by Thomson Reuters Canada Ltd. All rights reserved. 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