The workplace has changed…

Our guest bloggers this week are Daniele Zanotti, President & CEO of United Way Toronto & York Region and Elizabeth Mulholland, CEO of the national charity, Prosper Canada.

Growing income volatility is causing tough financial challenges and mounting stress for millions of Canadians, according to a new report by TD Bank Group. TD’s research found that unpredictable and variable income is associated with lower overall financial health for those affected, as well as lower financial confidence and increased financial stress.

Income fluctuations are tied to the rise of precarious employment in the changing labour market, as highlighted in United Way Toronto and York Region’s ongoing research. It shows that nearly half of all workers in the Greater Toronto and Hamilton Area (GTHA) are facing this new reality of precarious work. These workers are more likely to experience irregular income, suffer more anxiety, and have more difficulty making ends meet. This, in turn, undermines their family, work and social relationships and overall quality of life.

While the labour market has changed, our employment laws and income security policies have been slow to adapt. Most of these policies were developed at a time when standard, full-time permanent jobs were the norm, and they haven’t undergone major changes since.

A changing labour market doesn’t have to be a bad thing. To make it work for everyone though, we need a coordinated response by government, labour, employers and community organizations to ensure that those who are most vulnerable receive the supports and protections they need and policies are in place to mitigate negative impacts on people, households, businesses and communities.

This is why the Government of Ontario’s imminent response to the Changing Workplaces Review Final Report is so timely and critical. Keeping our labour markets dynamic and flexible, while also supporting people engaged in non-standard employment, requires new policy and institutional approaches.

Finding the right balance between competitiveness and job stability, and between the needs of employers and workers will not be easy. But Canadian employers have shown interest in learning more about the impacts of this new reality for their workers and are already engaged in discussions with organizations like United Way, KPMG and Prosper Canada to understand how businesses can also contribute to and benefit from a more secure workforce.

We are at an important crossroads for Ontario and leadership from all sectors is critical to building the momentum and support needed to modernize our employment standards and practices. If we can build consensus, work together, and move forward with purpose, we can get at the root causes of growing income volatility and reduce its financial and human toll on individuals, families, communities and our economy.

We look forward to the Government of Ontario’s proposed legislation later this year and a thoughtful, balanced agenda that builds inclusive prosperity for all Ontarians. With the right policies, we can help our businesses to thrive, while also enabling Ontarians to achieve the financial stability they seek and the ability, once again, to plan for and invest in the future they want for themselves and their families.

It will take all of us working together to develop a labour market that works for everyone, and we encourage the provincial government to exercise its leadership on this issue and set Ontario on the right course.

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.