Ontario Introduces Legislation to Create Fair Workplaces, Better Jobs
Province Proposing $15 Minimum Wage and Equal Pay for Part-Time & Full-Time Workers to Help Vulnerable Workers in a Changing Economy
Ontario introduced legislation today to create more opportunity and security for workers through its plan for Fair Workplaces and Better Jobs, including hiking the minimum wage, ensuring part-time workers are paid the same hourly wage as full-time workers, introducing paid sick days for every worker and stepping up enforcement of employment laws.
Over the past three years, Ontario's economy has outperformed all G7 countries in terms of real GDP growth. While exports and business investments are increasing and the unemployment rate is at a 16-year low, the nature of work has changed. Many workers are struggling to support their families on part-time, contract or minimum-wage work. Government has a responsibility to ensure Ontario workers are protected by updating the province's labour and employment laws.
To help safeguard employees and create fairer and better workplaces, The Fair Workplaces, Better Jobs Act, 2017 would:
- Raise Ontario's general minimum wage to $14 per hour on January 1, 2018, and then to $15 on January 1, 2019, followed by annual increases at the rate of inflation
- Mandate equal pay for part-time, temporary, casual and seasonal employees doing the same job as full-time employees; and equal pay for temporary help agency employees doing the same job as permanent employees at the agencies' client companies
- Expand personal emergency leave to include an across-the-board minimum of at least two paid days per year for all workers
- Bring Ontario's vacation time into line with the national average by ensuring at least three weeks' vacation after five years with the same employer
- Make employee scheduling fairer, including requiring employees to be paid for three hours of work if their shift is cancelled within 48 hours of its scheduled start time.
The government is also proposing measures to expand family leaves and make certain employees are not misclassified as independent contractors, ensuring they get the benefits they deserve. To enforce these changes, the province will hire up to 175 more employment standards officers and launch a program to educate both employees and small and medium-sized businesses about their rights and obligations under the Employment Standards Act.
" Ontario’s economy is strong and growing, but not everyone is feeling it. Today, we took the next step toward making sure that every hard-working Ontarian can share in Ontario’s prosperity. These initiatives will help build a province where security and opportunity are available for everyone."
- Kevin Flynn
Minister of Labour
- The Changing Workplaces Review, conducted by Special Advisors C. Michael Mitchell and John C. Murray over the past two years, estimated that more than 30 per cent of Ontario workers were in precarious work in 2014. This type of employment makes it hard to earn a decent income and interferes with opportunities to enjoy decent working conditions and/or puts workers at risk.
- In 2016, the median hourly wage was $13.00 for part-time workers and $24.73 for full-time workers. Over the past 30 years, part-time work has grown to represent nearly 20 per cent of total employment.
- Currently, half of the workers in Ontario earning less than $15 per hour are between the ages of 25 and 64, and the majority are women.
- More than a quarter of Ontario workers would receive a pay hike through the proposed increase to the minimum wage.
- Studies show that a higher minimum wage results in less employee turnover, which increases business productivity.
Ontario is proposing a broad consultation process to gain feedback from a wide variety of stakeholders on the draft legislation it has introduced. To facilitate this consultation, it is proposing to send the legislation to committee after First Reading.
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