Report calls for sweeping Canada Labour Code reforms

'The government should accept the principle that no Canadian worker should work full-time for a year and still live in poverty.' - Harry Arthurs

Ottawa (1 Nov. 2006) - A major new report by law professor and mediator Harry Arthurs recommends a sweeping overhaul of the weak, antiquated and often-ignored Canada Labour Code, a statute that has changed little since it was first enacted more than 40 years ago.

Following a two-year inquiry costing more than $3 million, Arthurs has released a report entitled Fairness at Work - Federal Labour Standards for the 21st Century, containing 172 proposals for reform. Download PDF

The code has been so badly undermined over the years by pro-business governments that Ottawa has ceased to set a federal minimum wage, decreeing that whatever rate the provinces set in their jurisdictions is good enough for the 'national' standard. Predictably, the result is that 'minimum' rates differ across the country and are now so low they amount to an international joke.

"The government should accept the principle that no Canadian worker should work full-time for a year and still live in poverty," Arthurs writes. "This is an issue of fundamental decency that no modern, prosperous country like Canada can ignore."

$10 minimum proposed

One of Arthurs' main recommendations is that Ottawa re-establish a federal minimum wage. He stopped short of formally recommending a specific rate but noted that he had received many recommendations suggesting $10 an hour. As he was releasing his report on Monday, NDP MP Peggy Nash introduced a private member's bill in the Commons calling for a $10 minimum wage in areas of federal jurisdiction.

Provincial rates now range from $6.75 an hour in Newfoundland to $8 in B.C. However, the provinces have diluted even these paltry rates by adopting reduced rates for new workers. In fact, B.C. has not the highest minimum wage in the country but the lowest at $6 - the rate it allows employers to pay new workers. In Nova Scotia the 'new worker' rate is $6.75.

The minimum wage is just one of the many changes proposed by Arthurs, who also calls for fairer treatment of temporary, part-time and contract workers, tighter rules on overtime and regulations to ensure decency at work and a balance between work and family time. Below is a complete set of links to his report.

'Long overdue'

James Clancy, president of the 340,000-member National Union of Public and General Employees, welcomed the report and urged MPs in Parliament and the Harper government to take it seriously and act quickly to adopt genuine reforms.

"This report is long overdue and makes many positive and progressive recommendations for change. It recognizes the harsh realities and concerns faced by contingent workers, which now represents a large and growing portion of the Canadian workforce," Clancy said.

Between 1992 and 2003, the Canadian work force grew 25%. The majority of new jobs created involved part-time, temporary or other forms of contingent work. The result is that more than a third of all Canadian workers are now employed in contingent work.

"Harry Arthurs makes a strong and welcome connection in his report between labour rights and human rights."

Chapter 6 of Arthurs' report deals with the interface between labour standards and human rights legislation. He notes that “Because Part III [of the Labour Code] has to do with improving material conditions and reducing insecurity in the workplace, in a sense the overall effect of Part III is to enhance the human rights of workers.”

”This is a vital and urgent issue that we in the National Union have been advocating for years and that all governments must recognize.” Clancy said.

"For decades, Canada has been governed for the benefit of corporations and business, while the rights and needs of ordinary workers have been pushed aside. This report cries out for our politicians, who must serve all citizens, to address the glaring imbalances that now exist. If ever a report deserved the full and immediate attention of our elected leaders, this is it."

Red flag in Chapter 7

Clancy said one drawback of the report is a recommendation contained in Chapter 7 which would allow employers to "seek approval for adjustments to certain statutory standards directly from their workers."

"This is a worrisome recommendation that undermines the spirit of the report. It would open the door to coercion of employees by employers to accept 'adjustments' less than what they are entitled to have," he argues.

The document has also been welcomed by the three-million member Canadian Labour Congress.

"This report offers practical and overdue recommendations to implement employment standards that fit the times," says CLC president Ken Georgetti.

"Professor Arthurs consulted widely and appropriately with labour, employers, experts and community groups. His report is, overall, fair and balanced... We do not agree with all of his recommendations. However, he has given us a very clear and useful road map to reform," Georgetti adds. NUPGE