Canadian HR Reporter - Ontario

CANADIAN HR REPORTER JULY 2018 18 INSIGHT Employees don't come cheap E mployees are expensive. ere is no getting around the fact that, for most or- ganizations, the number one cost on the books is salary and benefits. In regulation-loving Canada, dare we say the burden on employers is getting a tad too heavy — and a recent human rights ruling is only going to in- crease the load. Skyrocketing minimum wage, increasing Canada Pension Plan (CPP) and employment insur- ance (EI) premiums and the ever- popular double-digit increases in benefit costs are all unsavoury in- gredients for a healthy bottom line. Just look at some of the math already facing employers. From 2017 to 2018, the annual maxi- mum CPP employer contribution stayed flat at 4.95 per cent. Noth- ing to complain about, right? Well, no. Because as maximum pensionable earnings increase, so too does the contribution in real dollars — rising from $2,564 to $2,593 for employers outside of Quebec. Employers with workers covered by the Quebec Pension Plan (QPP) will see it jump from $2,797 to $2,829. Employer EI premiums for non-Quebec employees also rose from $1,170 in 2017 to $1,201 this year. Quebec's maximum rate rose from $912 to $940 — that doesn't include the separately funded Quebec Parental Insurance Plan, which saw premiums rise from $556 to $567. Put another way, if you have 500 employees contributing the maxi- mum, then your contributions for those two things alone increased more than $30,000 year-over- year. In Quebec, it's even higher at $36,000 plus. Minimum wage has been a popular punching bag in many provinces, as the rush is on to get it to $15 per hour. In Ontario, be- tween 2017 and 2019, the wage is scheduled to jump nearly 32 per cent from $11.40 per hour to $15. It currently sits at $14 per hour — and may very well stay there fol- lowing the election of a Progres- sive Conservative government. In Alberta, the minimum wage is scheduled to jump to $15 per hour in October. at's a 47 per cent increase since 2015. Trot out all the numbers you want about the relatively small percentage of workers earning minimum wage, but the domino effect it has in driving wages up for all workers can't be ignored. e latest fuel to be thrown on the cost fire is coming out of On- tario, as detailed in the page 3 story by Sarah Dobson. at's because a human rights tribunal has ruled it is discriminatory to cut off benefits for a worker who turns 65. It is impossible to argue against that decision. You cannot, and should not, discriminate against someone on the basis of age. at battle was fought and won when mandatory retirement was out- lawed for most jobs, with a few exceptions that had bona fide oc- cupational requirements. But remember the reason why governments didn't mandate ben- efits coverage at the time? Anneli Legault, a partner at Dentons in Toronto, summed it up perfectly. "They were so honest, they actually said, when they passed mandatory retirement abolish- ment, they said they were wor- ried about the financial viability of benefit plans," she said. "So (em- ployers) were allowed not to give benefits to everyone." Well, the exemption is gone but the worry very much remains. I'm concerned about the viability of benefit plans as we know them in an age where Canadians are work- ing longer than ever. Older employees cost more to insure — the simple fact is they are more likely to have health is- sues. From prescription drugs to long-term disability, the price tag will be significant and many firms will have no choice but to scale back coverage or put much more of the onus on employees to share the burden. But the biggest fear on benefits doesn't rest with older workers. Many employers value the expe- rience and wisdom they bring to the table and will figure it out in the short run. Instead, it's on the generation about to enter the workforce who may never see a benefits package like their parents and grandparents enjoyed. We have seen a rise in precari- ous work — contract after con- tract handed out rather than add- ing to dreaded headcount. We've seen an explosion in companies that thrive on the backs of independent contractors — and some creative accounting and stretching, shall we say, to ensure these contractors (who are workers in everything but name) remain independent. And we haven't even touched on the obligations on employ- ers when a worker is terminated, from severance to common-law notice periods. e golden handcuffs that long- term employees wear — the ones who won't walk out the door with- out a package — are non-existent for independent contractors. You can pretty much show them the door, for any reason, at no cost whatsoever. It all goes back to one simple point — hiring a full-time em- ployee in Canada is expensive. Adding headcount isn't a slam dunk, but good HR practices tell us the benefits still outweigh the costs in most cases. For HR, it just means that mak- ing the business case for investing in solid human resources prac- tices is getting even more difficult. A PLACE TO REST VANCOUVER – A Tim Hor- tons outlet in Vancouver paid a fond farewell to a regular patron recently after the death of "Ted," a homeless man who lived at the always-open restaurant. Known as kind and easygoing, the older man began sleeping, eating and hang- ing out at the coffee shop about 10 years ago, according to the Cana- dian Press. Struggling with cancer, Ted suffered a medical episode prior to his death, so staff called 911 for assistance. Tim Hortons said it is reviewing the details of the incident, adding restaurant owners and their teams have full discretion to do what's necessary to help guests who need medical assistance. "Like other members of the community, we were saddened to hear this news. e individual was a regular at the restaurant and will be missed,'' said a statement from the chain. Ted was a retired low-wage worker who struggled to make ends meet, said Judy Graves, an advocate for the homeless. "He decided to maintain his dignity by living as much as he possibly could at Tim Hortons… I'm nothing but grateful to that Tim Hortons." DANCING FOOL DENVER – Showing off his moves, an off-duty FBI agent dancing at a Denver bar accidentally shot a man recently — and initially didn't notice. e agent was filmed by a patron doing a handstand when his gun fell from its holster, according to Reuters. When the agent bent down to pick up his handgun, an "unintended discharge" occurred, said the Denver Police Depart- ment, and another customer in the crowd at the Mile High Spirits and Distillery was hit by the stray bullet in the leg, sustaining a non- life-threatening injury. e agent, 29-year-old Chase Bishop, was later charged with second-degree assault, according to Global News. NOT CLEARED FOR TAKEOFF REDDING, CALIF. – Two em- ployees at a flight school in Red- ding, Calif., took matters into their own hands recently — and faced the consequences. Jonathan Mc- Conkey, general manager at IAS- CO Flight Training, and his assis- tant Kelsi Hoser were arrested on suspicion of kidnapping a student pilot and trying to send him back to his native China, according to the Associated Press. ey showed up at Tianshu Shi's apartment one evening and told him he would be "shipped back," said Redding police corporal Rob Peterson. e next day, they returned to tell Shi to pack his bags, but the student recorded the confrontation. "I've got your (expletive) passport. You're leaving now,'' said a male voice in the recording. "e United States government needs you out of this country right now, you un- derstand?'' Eventually Shi entered the car — but he also managed to contact his brother in Shanghai who called police. Hoser told po- lice they were sending Shi back to China because his English wasn't strong enough to safely commu- nicate with the air traffic control tower. McConkey and Hoser could face charges including conspiracy and kidnapping, said police. KILLER EXCUSE HAYDOCK, U.K. – Managers worldwide have heard all kinds of excuses when employees don't show up for work, but one em- ployer received a most upsetting message when checking up on his colleague, Ian Robertson. "Is ev- erything OK mate? Alex said that you wasn't in work today because of a family emergency?" messaged employer Anthony Millard on WhatsApp. Robertson's response? "If you want the truth mate, I mur- dered someone in my house last night so now need to fix it." He then sent his employer a photo of his victim, Robert Sempey. Rob- ertson was later sentenced to 21 years in jail, while his girlfriend was jailed for more than two years for helping to move the corpse. THIS LITTLE PIGGY… YAJI MOUNTAIN, CHINA – Looking to modernize its farm sector, China is pushing ahead with industrialization of its hog herds – and that includes the creation of "hog hotels." Up to 1,000 swine can live on each floor of these high-rise buildings, with one company run- ning a seven-floor breeding operation, including plans for a 13-floor version, according to Reuters. e large buildings resemble hotels, and the workers easily move the hogs from floor to floor by elevator. "ere are big advantages to a high- rise building," said Xu Jiajing, manager of Guangxi Yangx- iang's mountain- top farm. "It saves energy and resources. e land area is not that much but you can raise a lot of pigs." Credit: AVA Bitter (Shutterstock) Vol. 31 No. 7 – July 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. CANADIAN HR REPORTER is published 12 times a year. 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