5 reasons why employment reform matters

Job insecurity has become a hot-button issue in today’s rapidly changing labour market. In fact, we know from our research that almost half of all workers in the Greater Toronto and Hamilton Area are working in some degree of precarious employment. This has a major impact on the wellbeing of individuals and their families, trapping them in a cycle of insecure employment that makes it difficult to move into better opportunities. The soon-to-be released Changing Workplaces Review is a chance to further spark conversation around this vital issue and to highlight the importance of employment reform and its impact on individuals, families, communities and businesses across our region. Here are five reasons why employment reform matters.

1. The labour market has changed—and we need to keep pace: Job insecurity has been rising while stable employment has been eroding since the 1970s. Keeping our labour markets dynamic and flexible, and at the same time, supporting workers outside of standard employment, requires new approaches to policies and institutions. Other jurisdictions in the U.S. and Australia have already taken action to give people in precarious jobs better protection and more options for building a good life. For example, New York City extended paid leave for most employees in workplaces of 5 or more and unpaid leave for most people in workplaces of 1-4 workers. Our region is ready to step up to meet these challenges head-on in order to achieve a balance between our social and economic objectives.

2. It helps level the playing field for our region’s most vulnerable individuals: A community is only as strong as the sum of its parts. In this new labour market, the most vulnerable workers are often those that are impacted the most negatively. People who are precariously employed experience penalties that others in stable, secure jobs don’t face. For example, many precarious workers aren’t formally recognized as employees, and aren’t protected by the Employment Standards Act. And only 12 per cent of those in precarious employment are paid if they miss a day’s work. It’s these workers who need the most protection. Employment reform will bring us one step closer to giving these individuals a fair chance at a good life.

3. A job is more than just a means to an end: In fact, we have an opportunity to make jobs a “pathway” to income and employment security. Many precariously employed people have a hard time moving into better opportunities—partly because there is no provision for preventing different treatment of workers based on employment relationship or hours of work in the Employment Standards Act. Employment reform can help people build futures that are strong, secure and prosperous by eliminating this disparity in compensation.

4. It’s good for business: Changes in the labour market aren’t just hurting people—they’re increasingly seen as having a negative effect on businesses. When people have unpredictable lives, they’re not engaged in their work and they also make more errors, according to Zeynep Ton, an adjunct associate professor at the MIT Sloan School of Management who has researched the topic extensively. However, we also know that when businesses invest in the security of their workforces, there tends to be less turnover and higher productivity. The bottom line? Good jobs aren’t just good for employees and communities, they’re good for business too. That’s why United Way Toronto & York Region has signed on to the Better Way to Build the Economy Alliance—a coalition of organizations from the community sector, private sector and labour. The Alliance has put together a compelling website to share the secret to a key success of several local employers: an investment in decent work. 

5. It’s good for communities: We know from our research that precarious employment traps people in a cycle that can be hard to break free from. This impacts individual lives—but it also impacts their communities. Workers who are precariously employed often delay starting families and are less likely to volunteer or give back to their community. There are economic and social consequences for the neighbourhoods where these people live.

We look forward to the upcoming conversation around employment reform, which represents the next major step to strengthening our economy by enabling a dynamic, engaged and productive workforce.