HUMA committee briefing binder: Appearance of Minister of Labour – May 30, 2023

1. Overview 

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) has invited you to appear in view of its study of the Main Estimates 2023 to 2024 and Supplementary Estimates (C), 2022 to 2023. 

2. Committee proceedings  

Your appearance is scheduled to take place on Tuesday, May 30, 2023 , from 3:30 p.m. to 4:30 p.m. 

You will appear on a panel with Ministers Qualtrough, Khera and Gould, and be accompanied by: 

• Sandra Hassan, Deputy Minister of Labour and Associate Deputy Minister of Employment and Social Development 
• Jean-Francois Tremblay, Deputy Minister of Employment and Social Development (in-person) 
• Karen Robertson, Chief Financial Officer (in-person) 
• Lori MacDonald, Chief Operating Officer, Service Canada ad Senior Associate Deputy Minister of Employment and Social Development
• Cliff Groen, Business Lead, Benefits Delivery Modernization
• Elisha Ram, Senior Assistant Deputy Minister, Income Security and Social Development

For the second and subsequent rounds, the order and time for questioning is as follows:

• Conservative Party, 5 minutes 
• Liberal Party, 5 minutes 
• Bloc Québécois, 2 and a half minutes 
• New Democratic Party, 2 and a half minutes 
• Conservative Party, 5 minutes, and 
• Liberal Party, 5 minutes 

Budget 2023

Amendments to the Canada Labour Code

• New Leave for Pregnancy Loss
• Eradicating Forced Labour from Canadian Supply Chains
• Protecting Federally Regulated Gig Workers
• Death or Disappearance of a Child
• Replacement Workers

Rights of workers

Sustainable jobs

• Report of the Commissioner on the Environment and Sustainable Development on Just Transition: insufficient government preparation to support affected workers and communities
  • The Commissioner said it very clearly: when it comes to supporting a just transition to a low-carbon economy, the government has been unprepared and slow off the mark. Are you not failing the 50 communities and 170,000 workers in the fossil fuels sector?
• Align oil and gas projects with sustainable jobs
  • What did you hear from your counterparts at the Roundtables earlier this year in Alberta?

Fairness in the workplace

Miscellaneous

Member biographies

Issue

The Government of Canada committed to amending the Canada Labour Code (Code) to provide paid leave for federally regulated employees who experience a pregnancy loss.

Background

Key facts

• Approximately 15% to 25% of pregnancies end in miscarriage ^{Footnote 1} and over 3,000 stillbirths are reported in Canada each year ^{Footnote 2}
• These experiences are prevalent, and the emotional or physical impact they have varies from person to person. Depending on the circumstances of the event, some people may experience profound feelings of grief while others may feel mixed emotions (for example, guilt, anger, anxiety) ^{Footnote 3}
• Without proper rest and recovery, some individuals could be at risk of developing prolonged mental health problems, such as clinical depression, anxiety disorders, and post-traumatic stress disorder ^{Footnote 4}

Key messages

• The Government of Canada recognizes that a pregnancy loss is a profoundly personal event in someone’s life
• Approximately 15% to 25% of pregnancies end in miscarriage, and 1% end in stillbirth. Without time to rest and recover, those who lose a child are at higher risk of developing physical and mental health challenges
• This is why our Government committed in Budget 2023 to make amendments to the Canada Labour Code to create a new stand-alone leave for workers in the federally regulated private sector who experience a pregnancy loss
• This will support thousands of Canadians, including working parents, as they recover, both physically and emotionally, from a tragic moment in their life. This new leave will also apply to parents planning to have a child through adoption or surrogacy
• In October 2022, we consulted stakeholders on how such a leave should be effectively implemented and received largely positive feedback

Issue

The Minister of Labour, alongside other named Ministers, has a mandate letter commitment to introduce legislation to eradicate forced labour from Canadian supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses. Further, Budget 2023 committed to introducing legislation in 2024 to help eradicate forced labour from Canadian supply chains, and to strengthen the import ban on goods produced using forced labour.

Background

• The Government published a What We Heard Report in March 2022, which provides a summary of the 2019 consultations on possible measures to address labour exploitation in supply chains. Stakeholders were invited to review the Report and share any additional feedback. Overall, stakeholders support the introduction of supply chain legislation, though views differed on the scope and form of potential legislation. For example, while civil society and labour organizations favoured comprehensive, mandatory human rights due diligence (HRDD) requirements, business representatives favoured a reporting-based regime
• Several jurisdictions have introduced or announced planned measures to address labour exploitation and human rights abuses and violations in supply chains, such as a prohibition on the importation of goods produced by forced labour (for example, the United States and earlier in May 2023, Mexico, as part of the CUSMA obligation; and a regulatory proposal being considered by the European Union to address goods made with forced labour) and/or supply chain legislation (for example, United Kingdom, France, Australia, Netherlands, Norway, Germany, European Union)
• In Canada, parliamentarians are also seized with the issue. Several bills intended to address exploitation in supply chains are currently before Parliament. ^{Footnote 5} Senate Public Bill S-211 has brought attention to the matter of forced and child labour. It imposes an obligation on Government institutions and certain private-sector entities to report publicly on the measures taken to prevent and reduce the risk that forced labour or child labour is used by them or in their supply chains. The Act also amends the Customs Tariff to allow for a prohibition on the importation of goods manufactured or produced, in whole or in part, by forced labour or child labour. This Bill was adopted in the House on May 3rd and received royal assent May 11, 2023. As drafted, is expected to come into force on January 1, 2024
• Some stakeholders have expressed concern that the Bill does not go far enough to address the issue of forced labour in supply chains (for example, because it does not include due diligence obligations). Others have noted some operational considerations, including time needed to prepare for implementation
• Supply chain legislation is just one tool, among many, needed to address forced labour and other forms of exploitation. There are a number of complementary initiatives across the federal government aimed at tackling the issue of forced labour. These include, for example:
  • the Customs Tariff prohibition on the importation of goods produced in whole or in part by forced labour
  • the inclusion of comprehensive and enforceable labour provisions in free trade agreements to promote respect for internationally recognized labour rights and principles, including the elimination of forced labour and the abolition of child labour
  • The provision of capacity building to assist partner countries in meeting their obligations as set out in free trade agreements
    • For example, Canada’s Indo-Pacific Strategy, which was launched in November 2022, includes $25M over 5 years to improve the enforcement of labour provisions, including on forced labour, in current and future free trade agreements with Canada
  • the 2022 launch of a new 5-year strategy to promote responsible business conduct by Canadian companies active abroad, and
  • a strengthened federal procurement contracting regime that includes expectations for suppliers and subcontractors on upholding human and labour rights
• The Canada Border Services Agency (CBSA) is responsible for the administration and enforcement of the Customs Tariff. ESDC’s Labour Program provides support to CBSA by conducting research and analysis on the risk of forced labour for specific complaints or allegations received by CBSA pertaining to the import ban. CBSA may use information from the Labour Program as well as other sources of information to inform potential enforcement considerations
  • Unlike most other inadmissible products, there is no visual clue for a CBSA officer to easily identify the labour standards by which a particular import was produced (as compared to an illicit substance or prohibited firearms, for example). Establishing that goods were produced by forced labour and compiling evidence requires a significant amount or research, analysis and coordination
  • The CBSA continues to work with ESDC, other federal departments, and international government partners to advance the effective operationalization of the ban, including considering means of strengthening the ban, as was committed to in Budget 2023

Key facts

• According to the 2022 Global Estimates on Modern Slavery it is estimated that there are 27.6 million people in situations of forced labour worldwide
  • Women and girls make up 11.8 million of the totals in forced labour
  • More than 3.3 million of all those in forced labour are children
  • Most forced labour occurs in the private economy. 86% of forced labour cases are imposed by private actors – 63% in the private economy in sectors other than commercial sexual exploitation and 23% in forced commercial sexual exploitation. State-imposed forced labour accounts for the remaining 14% of people in forced labour
• In addition, the latest available estimates indicate that child labour has risen for the first time in 20 years, with approximately 160 million children in child labour. Almost half of those in child labour (over 79 million children) are working in dirty, dangerous, and degrading jobs that compromise their health, safety, and education
• World Vision estimates that there are approximately 4.3 million children in situations of forced child labour
• On January 24, 2023, World Vision released its report, Supply Chain Risk Report 2023: Canada’s Growing Child & Forced Labour Problem. The report indicates that there was $48 billion in goods imported into Canada in 2021 that are at risk of being made with forced labour and/or child labour. Some of the goods at risk include electronics, garments and textiles, footwear, coffee, and fish, among others

Key messages

• The Government committed, as part of the 2023 federal budget, to introduce legislation to help eradicate forced labour from Canadian supply chains. The legislation will be strong, effective, and enforceable
• Steps will also be taken to strengthen the import ban on goods produced using forced labour as noted in the federal budget
• There is no jurisdiction that has both supply chain legislation and an importation ban on goods produced with forced labour currently in place. The interaction between such measures needs to be carefully considered to ensure these, along with other activities to address exploitation in supply chains, have the desired impact
• Last year, the Government published a What We Heard Report providing a summary of previous consultations on possible measures to address labour exploitation in supply chains. The Government continues to consider the results of these consultations, as well as best practices and other inputs received during continued engagement with numerous civil society organizations, industry associations, foreign governments and other stakeholders
• Supply chain legislation is just one tool, among many, needed to address forced labour and other forms of exploitation. The Government will continue to work with its partners to strengthen Canada’s overall approach and global efforts to eliminate forced labour

Issue

Entitling digital platform workers to job protections under the Canada Labour Code (Code).

Background

• The Minister of Labour has a 2021 mandate letter commitment to “advance amendments that entitle workers employed by digital platforms to job protections under the Canada Labour Code. This work will also include collaborating with the Minister of Employment, Workforce Development and Disability Inclusion to ensure better benefits and supports for these workers”
• In Budget 2023, the government proposed to “amend the Canada Labour Code to improve job protections for federally regulated gig workers by strengthening prohibitions against employee misclassification”
• Digital platform workers are gig workers who use electronic intermediaries (that is, platforms) like a smartphone application (for example, Uber and Lyft) to connect with clients who pay them through the platform to provide a service
• As demand for gig work increases, more Canadians are relying on jobs that do not come with the same level of job protection as is enjoyed by other employees in the economy
• Gig workers are often classified as self-employed independent contractors rather than employees, a status that is not covered by most job protections, including:
  • union and collective bargaining rights
  • occupational health and safety protections
  • minimum labour standards (for example, minimum wage, paid sick leave, overtime pay, severance pay), and
  • regular Employment Insurance benefits
• This is often the result of misclassification, a process through which employees are wrongfully – and often intentionally – classified as independent contractors and denied job protections
• As a result of a lack of job protections, gig workers often experience precarious working conditions and economic vulnerability, including low and unpredictable earnings, unpredictable schedules, and unpaid work time
• Three phases of consultations with stakeholders and the public were conducted between 2021 and 2022 to better understand how current federal labour protections could be updated to better protect gig and digital platform workers

Key facts

Key messages

• We have seen gig and digital platform work rapidly expand to cover more segments of the economy, and this is changing the way we work
• Our Government is committed to ensuring that workers in the gig economy are treated fairly and have access to greater labour protections
• To make sure that we get things right, 3 phases of consultations with stakeholders and the public were conducted between 2021 and 2022 to better understand how current federal labour protections could be updated to better protect gig and digital platform workers
• The results of these consultations are being taken into account as the Government develops ways to improve job protections for workers in the gig economy
• In Budget 2023, the government proposed to introduce strengthened prohibitions against employee misclassification under the Canada Labour Code to ensure that more gig workers can access labour protections

If asked what is being done to address Drivers Inc. model in the road transportation sector

• As misclassification has become a common situation in the federally regulated road transportation industry, through the 2022 Fall Economic Statement, the Government of Canada announced $26.3 million in new funding over the next 5 years to take stronger action against employers who misclassify workers
• Our teams are working very hard to ensure funding received is put to its most efficient and optimal use to tackle this problem. The initiative will allow the Program to establish a dedicated team to solely address the Incorporated Drivers issue nationally for at least the next 5 years
• With this funding, the Government will enforce the Canada Labour Code so that thousands of workers receive the entitlements and protections they are entitled to under the Code
• These efforts are expected to create workplaces in the road transportation industry that are more fair, safe, respectful, and inclusive for all

Issue

Amending the Canada Labour Code to ensure the leave related to the death or disappearance of a child aligns with recent changes to the corresponding Canadian Benefit for Parents of Young Victims of Crime.

Background

Key facts

• The Government of Canada has provided support to parents through 2 corresponding measures since 2013: the right to a job-protected leave of absence, and income support. Initially called the Federal Income Support for Parents of Murdered or Missing Children Grant (PMMC), the program was replaced by the improved Benefit in 2018, following an evaluation
• The federally regulated private sector includes about 945,000 employees (or 6% of all Canadian employees) working for 19,000 employers in industries such as banking, telecommunications, broadcasting, and inter-provincial and international transportation (including air, rail, maritime, and trucking), as well as federal Crown corporations and certain activities of First Nations band councils
• All the provinces and territories except Nunavut and the Northwest Territories provide respective leaves related to death or disappearance of a child, although duration and eligibility leaves may vary

Key messages

• The death or disappearance of a child is devastating. It can leave parents unable to work and in need of support
• To ensure victims’ families get the help they need, the Government of Canada has provided support through 2 corresponding measures since 2013: the right to a job-protected leave of absence, which is the Leave Related to Death or Disappearance, and income support through the Canadian Benefit for Parents of Young Victims of Crime. These 2 measures work hand in hand, and are aligned in terms of eligibility criteria, and duration of the eligibility period
• Minister Qualtrough has approved changes to the Terms and Conditions of the Benefit, with a view to increasing uptake of the Benefit by making eligibility more flexible and inclusive. These changes were implemented in April 2023
• Under the improved Benefit, the eligibility period within which an employee can receive up to 35 weeks of income support is extended from 104 weeks to 156 weeks (or from 2 years to 3 years). Also, the requirement that the child (14 years of age or older) was not a party to the crime which led to their death is removed. Other changes were also made that do not require amendments to the leave
• The Government is now amending the leave to align it with these improvements. This will ensure that employees in the federally regulated private sector have job-protected leave while receiving the improved Benefit

Issue

Introducing legislation by the end of 2023 to prohibit the use of replacement workers when a unionized employer in a federally regulated industry has locked out employees or is in a strike.

Background

• The Minister of Labour’s 2021 mandate letter included a commitment to “create a fairer collective bargaining process in federally regulated workplaces by advancing legislation to prohibit the use of replacement workers when a unionized employer has locked out its employees”
• This commitment was updated on March 22, 2022, as part of the Government’s supply and confidence agreement with the NDP, Delivering for Canadians Now, A Supply and Confidence Agreement. Under this agreement, the Government committed to “introducing legislation by the end of 2023 to prohibit the use of replacement workers, ‘scabs,’ when a union[ized] employer in a federally regulated industry has locked out employees or is in a strike”
• On October 19, 2022, the Minister of Labour launched consultations to hear from Canadians and stakeholders on the Government’s commitment to introduce legislation to prohibit the use of replacement workers in federally regulated workplaces by the end of 2023
• The consultations on prohibiting replacement workers and improving the maintenance of activities process under Part I of the Canada Labour Code (Code) closed on January 31, 2023
• From November 2022 to January 2023, the Labour Program held 5 roundtables with union and employer representatives, as well as Indigenous partners on these topics. A What We Heard Report summarizing the input received during the consultations is being prepared and will be released at a future date
• In these sessions, union representatives argued for a strong prohibition on replacement workers with robust enforcement mechanisms. By contrast, employer representatives argued that prohibiting replacement workers is not necessary and that doing so will destabilize labour relations in federal sectors, leading to more and longer work stoppages

Key facts

• The Code does not currently prohibit employers from using replacement workers in the event of a work stoppage in order to continue operations. However, since 1999, it prohibits employers from hiring replacement workers to undermine union representation
• Between June 2011 and October 2022, there were 75 work stoppages in federally regulated sectors. Labour Program research estimates that replacement workers or managers were used in 40% of these work stoppages (that is, 30 of the 75 work stoppages) to perform some or all of the work of bargaining unit members who were on strike or locked out
• Only Quebec and British Columbia have legislation that prohibits employers from using replacement workers during work stoppages
• Numerous Private Members’ Bills (PMBs) have been proposed to strengthen the prohibition against using replacement workers in the Code since 1999. The most recent PMBs were introduced in 2022. However, all previous PMBs were defeated or “died on the order paper” in the House of Commons

Key messages

• The Government is committed to maintaining a fair and balanced approach to labour relations for employers, unions and employees in the federal jurisdiction
• That’s why we’ve committed to introducing legislation by the end of 2023 to prohibit the use of replacement workers during strikes and lockouts in federally regulated industries
• We know these are important changes. And we know how important it is to get this right. On October 19, 2022, I launched consultations to hear from Canadians and stakeholders on this commitment. I also asked stakeholders to share their views on best way to improve the maintenance of activities process under Part I of the Canada Labour Code
• Consultations closed on January 31, 2023. During this time we held 5 roundtables with employers, unions, and our Indigenous partners. I was glad to attend several of these sessions to hear from stakeholders directly
• We’ll certainly take those views into account as we develop our legislation over the coming months

If pressed on a prohibition on replacement workers leading to longer and more frequent strikes

• I know that employers and unions have strong views when it comes to prohibiting replacement workers, and what effect this will have on labour relations going forward
• That’s why I made sure to sit down with stakeholders at the table and hear their views and concerns firsthand
• That’s what tripartism is all about – and that’s how you make labour policy that works

Issue

Completing the development of a right to disconnect policy, in consultation with federally regulated employers and labour groups.

Background

• The Minister of Labour has a mandate commitment to complete the development of a right to disconnect policy, in consultation with federally regulated employers and labour group
• The Right to Disconnect Advisory Committee was formed in 2020 with representatives from federally regulated employers, unions and non-governmental organizations. The mandate of the Committee was to recommend how to support federally regulated workers’ “right to disconnect.” The Committee’s final report was published in February 2022 and is available online
• Among Committee members, there was substantial divergence on how the government should proceed. This included debate about whether or not a legal requirement for the right to disconnect should be pursued
  • Ontario is the first jurisdiction in Canada to pass right to disconnect legislation. As of June 2022, provincially regulated employers in Ontario with 25 or more employees must have a policy on disconnecting from work
  • Evidence shows that the ability to remain connected to work, while beneficial in certain ways, carries risks for employees, including stress due to disrupted work-life balance, burnout, and health-related absenteeism from work. It also creates uncertainty around the application of labour standards to new workplace realities such as telework and electronic communication outside of scheduled working hours, especially through digital devices

Key facts

• According to Statistics Canada, in December 2022, about 15.8% of Canadians aged 15 to 69 worked exclusively from home, while another 9.6% had a hybrid work arrangement
• For many Canadians, working from home means working longer hours. Overall, 35% of all new teleworkers reported working longer hours per day and only 3% reported working shorter hours
• A June 2022 report by the Environics Institute, the Future Skills Centre and the Diversity Institute noted that about 1 in 3 employed Canadians always or often continue to work after their regular working hours. Another 30% of workers report that this happens at least some of the time
• Similarly, in March 2022, LifeWorks found that 28% of Canadians are experiencing challenges disconnecting from work after regular working hours. These workers had a mental health score that was nearly 9 points below the national average
• The days lost per private sector worker in Canada due to illness or disability increased from 8.0 days in 2021 to 8.9 days in 2022. For men, the increase was from 7.4 days in 2021 to 8.3 days in 2022, while for women it was from 9.0 days in 2021 to 10.0 days in 2022
• According to the Survey of Employees under federal jurisdiction, 2022, about 25% of employees under federal jurisdiction indicate sending/answering work-related emails, calls or texts outside of working hours every day. About 26% of employees under federal jurisdiction indicate doing paid overtime during a typical week. On average, employees report doing 2.5 hours of paid overtime per week

Key messages

• I have a mandate commitment to complete the development of a right to disconnect policy, in consultation with federally regulated employers and labour groups
• Right to disconnect policies can support work-life balance while maintaining the flexibility required in many 24/7 industries
• The Right to Disconnect Advisory Committee consulted stakeholders and experts on the benefits and challenges of remaining connected to work outside of regular working hours. Employers and workers agreed that work-life balance is important but had different perspectives on how the government should proceed when developing a right to disconnect policy
• We are taking these perspectives into account as we move forward with this important initiative

Issue

Amending the Canada Labour Code to explicitly include mental health as a specific element of occupational health and safety, and requiring federally regulated employers to take preventative steps to address workplace stress and injury.

Background

• The Minister of Labour has a mandate commitment to move forward with, and secure passage of amendments to the Canada Labour Code (Code) to include mental health as a specific element of occupational health and safety, and to require federally regulated employers to take preventative steps to address workplace stress and injury
• Occupational health and safety is covered by Part II of the Code and its related regulations. These apply to federally regulated private sector employers, Crown corporations, the federal public service and parliamentary workplaces, including the House of Commons and the Senate
• In the context of occupational health and safety, protecting mental health is known as psychological health and safety
• While the focus has historically been placed on the physical aspect of health and safety in the workplace, recent Court decisions have interpreted the obligations of employers under Part II of the Code and related regulations as implicitly including psychological health and safety
• Bill C-65, An Act to amend the Canada Labour Code (harassment and violence), the Parliamentary Employment and Staff Relations Act and the Budget Implementation Act, 2017, No. 1, which came into force on January 1, 2021, amended the Code to create a single, integrated regime that will protect federally regulated employees from harassment and violence in the workplace. It also amended the purpose statement of Part II to include a specific reference to “psychological injuries and illnesses.” This is expected to strengthen the view that prevention of psychological illnesses and injuries is part of the employer’s obligation
• Consultations with employers, employees, unions and advocacy/expert stakeholders were conducted between 2020 and 2021 to better understand barriers to preventing psychological illnesses and injury in the workplace

Key facts

• According to the Mental Health Commission of Canada, even before the pandemic, 500,000 employees were unable to work each week due to a mental health issue or illness
• According to national polling data collected by Mental Health Research Canada in 2021, 1 in 4 Canadians believe their work is having a significant impact on their psychological health and only about half (53%) would describe their workplace as being psychologically safe. About one third (35%) feel burned out at work. This is even more prevalent among women (39%), racialized workers (41%) and the 2SLGBTQIA+ community (43%)
• In recent years, work-related psychological injuries and illnesses resulting in time away from work have been increasing across Canada, along with costs to employers, in both the private and public sectors
• The Mental Health Commission of Canada (MHCC) estimates that mental health problems cost the Canadian economy over $50 billion per year, including the costs of health care, social services and income support. The MHCC also estimates that more than 1 third (35%) of these overall societal costs are related to work, and that mental health problems in the workplace cost the Canadian economy approximately $6 billion per year in lost productivity (MHCC, 2010; 2013)

Key messages

• Mental health is a clear priority for this government and enhancing workplace mental health protections is a core element of my mandate letter
• Mental and physical well-being are inseparable. Including mental health as an explicit element of occupational health and safety and requiring employers to take preventative steps is good for workers and good for productivity
• We heard from experts, unions, employees, and employers on the issue of workplace mental health and were able to identify barriers that need to be removed to help prevent psychological illness and injury in the workplace
• The views and feedback from stakeholders are helping to shape the way forward, towards improving mental health labour protections for federally regulated employees

Issue

The Minister of Labour’s December 2021 mandate letter included a commitment to continue to support employers and unions to strengthen harassment and violence prevention measures in federally regulated workplaces.

Background

• On January 1, 2021, the Government strengthened harassment and violence provisions in the Canada Labour Code (the Code) by introducing the Workplace Harassment and Violence Prevention Regulations. These regulations protect federally regulated employees in the workplace by supporting federal employers in their efforts to ensure comprehensive policies and procedures that workers both expect and deserve
• More specifically, the regulations: prevent and protect against both harassment and violence in the workplace; require employers to investigate, record and report occurrences of harassment and violence; and, protect the privacy of employees who report occurrences of harassment and violence to encourage victims to come forward
• Starting in 2018 to 2019, the Government committed $34.9 million over 5 years, with $7.4 million annually ongoing, to support the implementation of the regime. The funding supported: regulatory development; the creation of an outreach hub to support employees; the development of educational material and tools; and an awareness campaign to support implementation
• The Government has set up a $3.5 million-annual Workplace Harassment and Violence Prevention Fund to support projects in federally-regulated workplaces. These funds will help create safer workplaces in federally regulated sectors by developing sector-specific tools and resources related to harassment and violence prevention
• The Labour Program also worked closely with the Canadian Centre for Occupational Health and Safety to establish a Roster of Investigators which serves as an online repository of investigators who can help employers (or their designated recipients) with unresolved occurrences of workplace harassment and violence

Key facts

• Since 2018, the Workplace Harassment and Violence Prevention Fund has supported 13 projects in a variety of federally-regulated private workplaces across Canada, focusing on key targeted sectors
• Since 2019, the Government has invested $3.5 million-annually in projects that will help create safer workplaces for federally regulated employees. Through the Workplace Harassment and Violence Prevention Fund, partner organizations receive funding to co-develop tools and resources such as education, guidance and mandatory training that address these workplace issues. These projects will help improve workplace culture and protect employees from harassment and violence in federally regulated workplaces
• The Labour Program receives statistical information from federally regulated employers annually through the Employer’s Annual Harassment and Violence Report. This report includes if occurrences of harassment and violence were related to a prohibited grounds of discrimination under the Canadian Human Rights Act. The 2021 Harassment and Violence Report in Workplaces under Canadian federal jurisdiction is to be published in June 2023. (Note: Of the 952 occurrences reported to the Labour Program for 2021, there were 291 related to sex (30.5%); and 202 (21%) related to race)
• On January 30, 2023, the Government of Canada officially ratified International Labour Organization Convention No. 190, the Violence and Harassment Convention, 2019, aimed at eliminating violence and harassment in the world of work
• Governments who ratify this convention are required to, among other things, adopt laws, regulations, policies and programs to define, prohibit and prevent violence and harassment, including gender-based violence and harassment, at work

Key messages

• The Workplace Harassment and Violence Prevention Regulations protect federally regulated employees in the workplace – including parliamentary workplaces – by providing federal employers with a robust and integrated framework
• Under theses regulations, federal employers have key obligations to:
  • conduct workplace risk assessments
  • develop workplace harassment and violence prevention policies
  • develop or identify training on harassment and violence
  • follow specific steps and timelines in a resolution process when responding to notice of occurrences of harassment and violence, and
  • report annually to the Head of Compliance and Enforcement with data on all occurrences as outlined in the Regulations
• To support our commitment, we established a $3.5 million annual Workplace Harassment and Violence Prevention Fund for projects in federally regulated workplaces. These funds help create safer workplaces and change workplace culture by developing sector-specific tools and resources related to harassment and violence prevention. I have recently approved funding for 7 new projects, expanding the Fund’s geographical and sectoral reach
• Canada’s 2023 ratification of the International Labour Organization Convention No. 190 further demonstrates commitment to ending workplace violence and harassment, both at home and abroad
• The Labour Program receives statistical information from federally regulated employers through the Employer’s Annual Harassment and Violence Reports. The 2021 Harassment and Violence Report in Workplaces under Canadian federal jurisdiction is to be published in the near future
• A review of the Workplace Harassment and Violence Prevention Regulations will take place in 2026. This will provide an opportunity to review what is working well, but also see where improvements might be needed

Issue

The audit report on the progress made by the federal government towards a ‘Just Transition to a Low-Carbon Economy’ from January 2018 to September 2021 found that the Government did not adequately support workers and communities affected by the coal phase-out and is not prepared for the transition.

Background

• Canada has committed to reducing greenhouse gas emissions to net zero by 2050. Achieving this ambitious target will require large-scale changes and climate actions, which will affect the economy and the labour market in significant ways. This is referred to as a ‘just transition’
• As a first step, the Government committed to the phase-out of traditional coal-fired electricity across the country by 2030. To support workers through this transition, Budget 2019 committed $185 million for worker transition centres (funding sunsets 2023) and an infrastructure fund (funding sunsets 2025), to be delivered by Atlantic Canada Opportunities Agency (ACOA) and Prairies Economic Development Canada (PrairiesCan)
• Moving forward, there is a commitment in every Minister’s mandate letter to support the whole-of-government effort to reduce emissions, support job creation and address the climate-related challenges communities are already facing
• More specifically, the Minister of Labour has a mandate commitment to work with the Minister of Natural Resources in moving forward with legislation and comprehensive action to achieve a Just Transition
• This work will be guided by consultations with workers, unions, Indigenous Peoples, employers, communities, and provinces and territories to support the future and livelihood of workers and their communities in the transition to a low carbon economy

Key facts

• The Commissioner of the Environment and Sustainable Development’s audit report on the progress made towards a just transition determined the government’s actions were insufficient and recommends to:
  • Establish a Just Transition governance structure, strategy, stakeholder engagement plan, and various measuring and monitoring practices to report on phases of the transition (including the coal phase-out)
  • Integrate Just Transition principles in the design of new federal programs and when leveraging existing mechanisms to support affected workers and communities
• A Deputy Minister-approved management response where ESDC agreed with all 5 recommendations was developed with Natural Resources Canada (NRCan) and submitted to the Office of the Auditor General on March 25, 2022
• The audit was tabled in parliament on April 26, 2022. Following this, the report was published online along with the management responses from implicated federal parties
• Each department’s action plan provides key milestones, expected timelines, and a description of the final expected outcome and results in response to the audit’s recommendations
• The Standing Committee on Public Accounts (PACP) has reviewed the audit and recommended the government provide more detailed reports on our progress to date. NRCan, supported by ESDC, ACOA, and PrariesCan, prepared an official government response to address these recommendations and submitted to PACP on March 6, 2023

Key messages

• Employment and Social Development Canada agreed with the audit and has been advancing work according to our action plan to respond to the recommendations
• Action Plan (June 2022)
  • The department’s action plan outlined the work already underway to support workers affected by the transition to a low-carbon economy. This included:
    • developing Just Transition legislation
    • funding projects to build talent for the clean economy
    • launching a Clean Jobs Training Centre (renamed the Sustainable Jobs Training Centre in the 2022 Fall Economic Statement)
• New investments (November 2022)
  • Building on the ongoing work outlined in our action plan, the 2022 Fall Economic Statement proposed to provide $250 million over 5 years, starting in 2023 to 2024, to Employment and Social Development Canada to help ensure Canadian workers can thrive in a changing global economy. Specific measures include:
  • the Sustainable Jobs Training Centre: The Centre would bring together key players to examine the skills of the labour force today, forecast future skills requirements, and develop training to help workers upgrade or gain new skills for jobs in a low-carbon economy
  • a new sustainable jobs stream under the Union Training and Innovation Program: The Union Training and Innovation Program supports union-based apprenticeship training in the skilled trades. Funded projects through this stream would support green skills training
  • the Sustainable Jobs Secretariat: The Secretariat will offer a one-stop shop for workers and employers and provide the most up to date information on federal programs, funding, and services across government departments
• Further details on all these measures will be provided in 2023
• We will continue to work closely with our federal colleagues to help ensure Canadians will benefit from a transition to a low-carbon economy

Issue

Supporting workers in the oil and gas sector in the transition to a low-carbon economy.

Background

• Canada is among the world’s biggest oil and gas producers, and all Canadians benefit from the sector’s contributions to our economy
• With Canada’s commitment to achieving net-zero emissions by 2050, workers in the oil and gas sector will be significantly impacted
• The Minister of Labour has a mandate commitment to work with the Minister of Natural Resources in moving forward with legislation and comprehensive action to achieve a Just Transition

Key facts

• Almost 600,000 Canadians work directly or indirectly in the oil and gas sector, including in oil and gas extraction and support services, pipeline transportation and distribution of oil and gas, and petroleum refineries
• According to a 2020 Statistics Canada report, each direct job lost in the oil and gas industry results in 6 jobs lost in other supporting industries
• Oil and gas workers have essential skills that can help build Canada’s low-emissions energy future and lay the groundwork for net-zero emissions by 2050
• The Government of Canada is making significant investments toward a green recovery to create thousands of jobs and keep our economy competitive for decades to come. For example:
  • the Sectoral Workforce Solutions Program (SWSP), which is a demand-driven program that primarily supports national projects (3 jurisdictions or more) to help workers with the training and reskilling they need to adapt and succeed in key sectors, and help employers retain and attract a skilled and diverse workforce, is currently funding 21 projects ($410M). For example, Iron & Earth and Energy Safety Canada lead skills development projects, which particularly benefit Albertan workers in the oil and gas and energy sectors
  • budget 2022 proposed $2.5 million for Employment and Social Development Canada (ESDC) to launch a new union-led advisory table to bring together unions and trade associations that will advise the government on priority investments to help workers navigate the changing labour market. Emphasis will be placed on skilled, mid-career workers in at-risk sectors and jobs
  • the 2022 Fall Economic Statement proposed to provide $250 million over 5 years, starting in 2023 to 2024, to Employment and Social Development Canada to help ensure Canadian workers can thrive in a changing global economy. Specific measures include launching a Sustainable Jobs Training Centre, introducing a new sustainable jobs stream under the Union Training and Innovation Program and establishing a Sustainable Jobs Secretariat
• The Government conducted public consultations with a broad range of stakeholders, including those in the oil and gas sector, to develop just transition legislation that will support workers and communities in the transition to a low-carbon future

Key messages

• The oil and gas sector has a role to play in a net zero future:
  • with a clear and collaborative plan, the sector can transform itself into the cleanest global oil and gas producers, while also moving to provide low-carbon and non-emitting energy products and services, such as low-carbon hydrogen, geothermal heat and power, carbon fiber, and asphaltenes
  • investments in decarbonisation and diversification can also create new jobs and support local and regional economies
• Canada will continue to rely on the know-how, experience, and skills of our oil and gas workers across Canada to produce energy with fewer emissions
• Skills and employment programming such as the Sectoral Workforce Solutions Program, the Community Workforce Development Program, the Union Training and Innovation Program can be leveraged to support a transition to a low-carbon economy
• In addition, through the 2022 Fall Economic Statement, our Government recently announced $250 million over 5 years for 3 new measures to help workers develop skills for a net-zero economy. These measures include:
  • a Sustainable Jobs Training Centre to help workers upgrade or gain new skills for jobs in a low-carbon economy
  • a new sustainable jobs stream under the Union Training and Innovation Program, to support unions in developing green skills training for workers in the trades
  • a Sustainable Jobs Secretariat to offer a one-stop shop for information on federal initiatives to build a low-carbon economy with opportunities for everyone
•  Further details on all these measures will be provided in 2023

Issue

Continue advancing the implementation of the Pay Equity Act across federally regulated workplaces.

Background

• The Minister of Labour has a mandate commitment to continue advancing the implementation of the Pay Equity Act across federally regulated workplaces.
• In Canada in 2021, for every dollar a man earned, a woman earned 90 cents on the dollar as measured in hourly wages for full-time workers
• The Pay Equity Act and its enabling Regulations came into force on August 31, 2021. With the Act now in force, full implementation primarily entails regulatory development, including the creation of an administrative monetary penalty (AMP) system and continuing to work with Indigenous partners to identify potential adaptions to make the Act work for Indigenous Governing Bodies
• Labour Program officials are developing a regulatory package to prescribe key elements of the AMPs system set out in the Act, as well as other requirements, such as how to maintain a pay equity plan in a workplace with no predominantly male job classes. Initial stakeholder consultations on this regulatory package took place in spring 2022
• The Act does not currently apply to Indigenous Governing Bodies (such as First Nations band councils). These workplaces are excluded from the application of the Act until a date specified by the Governor in Council. This delay allows the Government to engage Indigenous Governing Bodies and Indigenous community members to collect their views on the Act itself and see how it can be tailored to ensure positive results in an Indigenous context

Key facts

• The Pay Equity Act and Pay Equity Regulations direct federally regulated employers to take proactive steps to ensure that they are providing equal pay for work of equal value
• As of 2022, the Act applies to approximately 1.4 million workers employed by federally regulated public and private sector employers with 10 or more employees, as well as in the Prime Minister’s and Ministers’ offices. The new regime also applies to parliamentary workplaces
• The Act requires employers to establish a pay equity plan within 3 years of becoming subject to the Act. In addition, employers are required to review and update pay equity plans at least every 5 years in order to identify and close any gaps that may emerge
• The Act is administered and enforced by a Pay Equity Commissioner, who is a full-time member of the Canadian Human Rights Commission

Key messages

• We have taken long-overdue action to make equal pay for work of equal value a reality for federally regulated workers
• The Pay Equity Act, which came into force on August 31, 2021, directs employers to take proactive steps to ensure that they are providing equal pay for work of equal value and has brought about a dramatic shift in how the right to pay equity is protected in federally regulated workplaces
• The pay equity regime is administered and enforced by Canada’s federal Pay Equity Commissioner, who is supported by the Pay Equity Division at the Canadian Human Rights Commission
• In this role, the Pay Equity Commissioner assists workplace parties in understanding their rights and obligations under the Act, and in facilitating the resolution of disputes
• I will continue to advance the implementation of the Pay Equity Act by moving forward regulations that will, among other things, strengthen the Commissioner’s ability to encourage compliance and address issues that have been identified since the regime came into force

Issue

The Government of Canada fulfils its commitment to addressing pay gaps through the introduction of pay transparency measures for federally regulated, private-sector employers subject to the Employment Equity Act (the Act).

Background

Key facts

• While educational and work experience gaps are narrowing, the gap in pay between men and women persists among workers in Canada. In Canada in 2021, for every dollar a man earned, a woman earned 89 cents on the dollar as measured in hourly wages for full-time workers
• Among federally regulated private-sector employees in permanent full-time positions in 2020, 69.0% of men and 57.6% of women earned $60,000 and more per year. This compares to
  • 66.7% of Indigenous men and 49.7% of Indigenous women
  • 67.7% of men with disabilities and 55.6% of women with disabilities
  • 65.4% of visible minority men and 56.3% of visible minority women
• Budget 2018 committed $3 million over 5 years, starting in 2018 to 2019, to implement pay transparency for federally regulated private-sector employers with 100 or more employees to reduce pay gaps. On December 3, 2018, Treasury Board approved the funding requested for the pay transparency measures
• Budget 2019 announced amendments to the Employment Equity Act and Regulations to support the implementation of pay transparency measures. Following several rounds of stakeholder consultation, the amendments came into force on January 1, 2021, and apply to the annual employment equity reports submitted by employers on June 1, 2022. Specifically:
  • several in-person consultations hosting approximately 260 participants were held in early 2019 on proposed amendments to the Regulations. Participants included federally regulated employers, federal contractors, unions, special interest groups, industry associations, and representatives from provincial and municipal orders of government
  • an online questionnaire was sent to stakeholders in March 2019 to solicit additional feedback. The Labour Program received 260 online responses to the questionnaire, as well as 6 written submissions
  • in August 2019, the proposed amendments to the Regulations were also published in Canada Gazette, Part I for a 30-day public comment period. Following the feedback, the Regulations were further amended to ensure employers could calculate a representative hourly rate of pay for their employees to calculate pay gaps for each occupational group and the organization overall
  • the final Regulations were published in Canada Gazette, Part II in November 2020
• The Government’s new pay transparency measures will make pay gap information for women, Indigenous peoples, persons with disabilities and members of visible minorities working in federally regulated workplaces (for example, banking, communications, transportation) publicly available
• Employers reported their first pay gap information for the 2021 reporting year on June 1. This information will be published online in fall 2023

Key messages

• We will soon be the first country to publish pay gaps that go beyond gender. We will publish pay gaps for women, Indigenous peoples, persons with disabilities and members of visible minorities
• We will launch a new website before the end of 2023. The website will provide the public with user-friendly information on representation rates and pay gaps that affect the 4 designated groups
• The online information will include comparable pay gap information in the form of aggregated percentages for each employer, overall and for each Employment Equity Occupational Group, showing for women, Indigenous peoples, persons with disabilities and members of visible minorities the mean and median hourly pay gaps, the mean and median bonus pay gaps, and the mean and median overtime pay and hours gaps
• Canadians told us that they want pay discrimination to end. It is important that we get this right. This initiative will provide the information needed, so that employers and workers find a solution to recognize the dignity of all workers
• The UK tried it and it works. All large employers in the UK publish gender wage gaps online annually since 2017. The results are clear. Publishing pay gaps raises awareness about this issue

Issue

The Minister of Labour’s mandate letter includes a commitment to lead efforts to provide menstrual products in federally regulated workplaces to help ensure menstruating employees’ participation in work.

Background

• Regulations under Part II (Occupational Health and Safety) of the Canada Labour Code (the Code) require employers to provide supplies such as toilet paper, soap, warm water, and a means to dry hands. Current requirements do not require employers to provide menstrual products
• Providing menstrual products in the workplace can relieve health risks that menstruating employees may face when menstrual products are not available
• In November 2022, the NDP introduced Bill C-307, An Act to Amend the Canada Labour Code (menstrual products), which calls for menstrual products to be provided to all persons granted access to the workplace and is broader than the Labour Program’s currently proposed regulations to provide menstrual products to only employees
• The bill’s sponsor, Don Davies (NDP, Vancouver Kingsway), is #134 on the list of consideration for private members’ business (PMB), which means that this bill would not be eligible for debate at 2nd reading until fall 2024. Mr. Davies currently has 27 other PMB items and will only be able to select 1
• Regulatory amendments to require employers to provide menstrual products for employees in federally regulated workplaces were published in Part II of the Canada Gazette on May 10, 2023, with a coming into force date of December 15, 2023
• Six different consultation activities on the Menstrual Products regulatory initiative took place. Specifically:
  • in May 2019, a Notice of Intent was published in the Canada Gazette, Part I
  • in June 2021, a round table of experts was convened
  • in August 2021, a Summary of Findings and an online survey were published for public comment
  • in April 2022, a consultation session was held with a broad range of stakeholders
  • in August 2022 Modern treaty holders, other Indigenous governments, and Indigenous organizations had the opportunity to inform the Regulations through an engagement discussion paper
  • in October 2022, the proposed regulations were pre-published in the Canada Gazette, Part I for stakeholder and public feedback
• Total cost for those consultations were of approximately $20,000. The totality of those costs were for publication in the Canada Gazette as the consultations were conducted virtually and in house

Key facts

• In federally regulated workplaces, close to 500,000 employees, who account for approximately 35% of this workforce, could benefit from the provision of menstrual products
• A 2018 survey found that one third of Canadian women under the age of 25 struggled to afford menstrual products, while 70% have missed work or school, or have withdrawn from social activities, because of their period (Plan Canada International, 2018)
• A 2013 study conducted in the United States found that 86% of women have started their period unexpectedly in public without the supplies they need, causing feelings of anxiety or embarrassment, and often resulting in the disruption of workplace activities (Free the Tampons, 2013)

Key messages

• Limited access to menstrual products at work can put the health and safety of workers at risk. We’re strengthening regulations under the Canada Labour Code to make sure menstrual products are treated like other basic sanitation products, such as toilet paper and soap, and are made available at no cost to employees when they need them at work
• The public is increasingly aware that menstrual products are essential to a large proportion of Canadians who menstruate
• Providing menstrual products in the workplace will better protect the physical and psychological health and safety of employees who may need them
• Employers have flexibility to make the products available in washrooms or in another location in the same workplace controlled by the employer – as long as it is always accessible by workers and offers a reasonable amount of privacy
• The more we talk about it and the more we ensure access to menstrual products, the more we help to lift the stigma and create healthier, safer and more inclusive work environments
• This initiative advances the Government’s commitment to a more inclusive Canada by ensuring all employees’ participation in healthy and safe workplaces
• The final regulations, which apply to federally regulated workplaces, are now available in Part II of the Canada Gazette and will come into force on December 15, 2023

Issue

Strengthen provisions in the Canada Labour Code (Code) to better support employees who need to be reassigned during pregnancy and while breastfeeding.

Background

• The Minister of Labour has a mandate commitment to strengthen provisions in the Code to better support working women who need to be re-assigned during pregnancy and while breast-feeding
• In Quebec, the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) pays pregnant or nursing employees whose job functions pose a risk to their health or the health of their child or fetus, up to 90% of their wages if their employer is not able to reassign them to safer work. Since this entitlement is offered under Quebec’s occupational health and safety legislation, it does not apply to federally regulated workers
• Over the past several years, the Labour Program has received a significant volume of correspondence on the income assistance gap between employees under provincial jurisdiction and federal jurisdiction in Quebec

Key facts

• Part III of the Code sets labour standards for employees in the FRPS, including about 945,000 employees (roughly 6% of the Canadian employees) and 19,000 employers
• Women account for approximately 35.3% of the workforce in federally regulated workplaces in Canada
• Pregnant or nursing employees working in the federally regulated private sector whose jobs put their health or the health of their child at risk are currently entitled to the following protections under Part III of the Code:
  • the right to request that their employer modify their job functions or reassign them to safe work. Employees are entitled to take a leave of absence with pay while their employer examines their request for reassignment or job modification. The paid leave ends once the employer modifies the employee’s job functions, reassigns them, or informs them that it is not reasonably practicable to do either
  • if reassignment or job modification is impossible, the right to take an unpaid leave of absence for the duration of the risk. Employees could be eligible to receive EI sickness or maternity benefits during the leave of absence

Key messages

• The Government is committed to better support employees who are nursing or pregnant by strengthening provisions for maternity-related reassignment and leave under the Canada Labour Code
• The Labour Program is currently developing policy options to address this commitment

Issue

The Labour Mobility Deduction for Tradespeople introduced in Budget 2022 provides tax recognition on up to $4,000 per year in eligible travel and temporary relocation expenses to eligible tradespeople and apprentices working in the construction industry.

Background

• The Labour Mobility Deduction allows eligible workers to deduct eligible expenses of up to half of their employment income from a relocation, up to a total of $4,000 per year. Eligible expenses are amounts incurred for temporary lodging, round-trip transportation, and meals in the course of that round trip
• This measure was introduced in response to a commitment in the mandate letter of the Deputy Prime Minister and Minister of Finance. Your mandate letter asked that you support the Minister of Finance and Deputy Prime Minister in respect of this commitment
• The Labour Mobility Deduction was enacted on June 23, 2022, when Parliament passed Bill C-19, the Budget Implementation Act, 2022, No. 1

Key facts

• As announced in Budget 2022, the Labour Mobility Deduction is estimated to cost $595 million over 2021-2022 to 2026-2027
• People were first able to claim the Labour Mobility Deduction this spring when filing their 2022 tax returns

Key messages

• Canada is growing, and that means more homes, roads, and important infrastructure projects need to be built. Skilled trades workers are essential to Canada’s success and we need them to be able to get to the job site—no matter where it is
• Workers in the construction trades often travel to take on temporary jobs, and prior to the introduction of the Labour Mobility Deduction for Tradespeople in Budget 2022, their associated expenses often did not qualify for tax relief
• Improving labour mobility for workers in the construction trades can help to address labour shortages and ensure that important projects, like housing, can be completed across the country

[If pressed on Private Member’s Bill C-241]:

The Government supports the principle of Private Member’s Bill C-241, namely facilitating labour mobility for tradespeople by ensuring that their expenses are recognized for tax purposes when relocating for work. That is why the Government has already introduced and implemented the Labour Mobility Deduction for Tradespeople in Budget 2022, which achieves this objective.

Issue

In 2021, the Government of Canada announced its commitment to modernize the Federal Contractors Program to ensure federal contractors are paying their employees the federal minimum wage.

Background

• The Federal Minimum Wage (currently $16.65 CAD) ^{Footnote 9} is enforced through the Canada Labour Code on federally regulated firms. Federal contractors are not covered under the Code
• The intent of the federal minimum wage initiative is to ensure that suppliers to the federal government pay wages that are commensurate with the level of education, training and responsibilities employees require for their jobs
• The Federal Contractors Program aims to achieve employment equity outcomes through government procurement. It requires that organizations who do business with the Government of Canada implement employment equity in their workplace
• Government officials are working collaboratively to establish a coordinated approach and implement this commitment in the most effective way possible. The Labour Program is currently collaborating with Treasury Board of Canada Secretariat (TBS) and Public Services and Procurement Canada (PSPC) – as the largest federal contracting department – to identify opportunities to pursue common procurement policy modernization objectives

Key facts

• In the 2021 mandate letter, the Minister of Labour was asked to implement the federal minimum wage through a modernized FCP
• The Federal Contractors Program applies to provincially regulated organizations that have a combined workforce of 100 or more employees, and who have received an initial goods and services contract valued at $1 million or more (including applicable taxes)
• Currently, contractors must ensure their workforce is representative of Canada’s labour force with respect to the members of the 4 designated groups under the Employment Equity Act: women, Indigenous peoples, persons with disabilities, and members of visible minorities
• Since 2013, the Labour Program has enrolled 416 contractors under the Federal Contractors Program based on the $1 million contract value threshold which represents a small fraction of the unique contractors that PSPC has contracts with

Key messages

• We believe in equity and are working to level the playing field for all Canadians. Creating equitable, diverse and inclusive workplaces will build a country where every Canadian has a real and fair chance to succeed and contribute to the economy
• My officials are working collaboratively with Public Services and Procurement Canada – the largest federal contracting department – to establish a coordinated approach and implement this commitment in the most effective way possible
• Our objective remains focused on ensuring federal contractors pay wages commensurate with their employees’ occupational requirements, respecting the federal government’s jurisdiction and treating all suppliers fairly across the country
• Through our combined efforts, this initiative will support workers in organizations that contract with the federal government, lift more Canadians out of poverty, and support our economic recovery

Issue

The Government is supporting the implementation of new paid sick leave provisions, which were introduced under an Act to Amend the Criminal Code and the Canada Labour Code (Bill C-3).

Background

Key facts

• Part III of the Canada Labour Code sets labour standards for employees in the FRPS, including about, 945,000 employees (roughly 6% of the Canadian employees) and 19,000 employers
• Bill C-3 will benefit about 582,700 employees, representing 63.3% of all employees employed in federally regulated industries, who have access to fewer than 10 days of paid leave to treat a personal illness or injury

Key messages

• Bill C-3, which received all party support, provides employees in the federally regulated private sector with 10 days of paid sick leave per calendar year
• These amendments to the Canada Labour Code empower employees to prioritize their health and the health and safety of their workplaces

Issue

Accelerate the review of the Employment Equity Act and ensure timely implementation of improvements.

Background

• The Minister of Labour has a mandate commitment accelerate the review of the Employment Equity Act and ensure timely implementation of improvements, with the support of the President of the Treasury Board, the Minister of Housing and Diversity and Inclusion and the Minister for Women and Gender Equality and Youth.
• Since its introduction in 1986, the Act was reviewed in 1992, 1995 and a Parliamentary review was conducted in 2001 to 2002.
• Over that period, continued progress has been made in federally regulated workplaces for the 4 designated groups under the Act – women, Indigenous peoples, persons with disabilities and members of visible minorities. However, many workers from these and other equity groups are still facing barriers to employment. Canada has also undergone important economic, demographic and sociocultural changes resulting in increased diversity and an evolution of the meaning of equity, diversity and inclusion.
• The Employment Equity Act Review Task Force was launched on July 14, 2021, with a mandate to advise the Minister of Labour on how to modernize and strengthen the federal employment equity framework, by studying the Act and consulting with stakeholders, equity communities and Canadians on issues related to equity.
• Operating at arm’s length from the Government, the Task Force was composed of 12 members from various backgrounds and fields of expertise, including the Chairperson, Professor Adelle Blackett. The Task Force heard from hundreds of individuals representing stakeholder and partner organizations from public, private and non-profit sectors, including employers, unions, professional associations and members of designated groups and other communities, such as women, 2SLGBTQIA+ Canadians, Indigenous peoples, Black and racialized Canadians, persons with disabilities and other under-represented groups, including faith-based networks. Overall, the Task Force held 109 meetings over 51 days and these meetings involved a total of 337 attendees representing 176 organizations. The Task Force also received over 400 written submissions covering the full scope of the Employment Equity Act review, and an additional 350 expression of views shared via electronic correspondence.
• The report is entitled It Takes All of Us: Achieving Employment Equity through Transformation and Grace. It is a comprehensive report with over 180 recommendations covering both the human rights principles to guide the proposed changes and specific actions for implementing those changes. The report is being translated and edited in preparation for public release. The Labour Program plans to conduct targeted consultations with partners and stakeholders on the basis on the report.

Key facts

• According to the 2021 Employment Equity Act Annual Report, in federally regulated private sector employers covered under the Employment Equity Act:
  • women accounted for 39.1% of the workforce, compared to 48.2% labour market availability
  • Indigenous peoples accounted for 2.4% of the workforce, compared with 4.0% labour market availability
  • persons with disabilities accounted for 3.9% of the workforce, compared with 9.1% labour market availability, and
  • members of visible minorities accounted for 26.0% of the workforce, compared with 21.3% labour market availability
  • Within the core public administration:
  • the representation rate of women (55.6%) exceeded the labour market availability (48.2%)
  • Indigenous peoples accounted for 5.2% of the workforce, compared with 4.0% labour market availability
  • persons with disabilities accounted for 5.6% of the workforce compared with 9.1% labour market availability, and
  • members of visible minorities accounted for 18.9% of the workforce, compared to 21.3% labour market availability

Key messages

• Diversity is Canada’s strength. One of the ways the Government of Canada promotes equality and diversity is through the Employment Equity Act. Removing barriers to employment ensure that every Canadian has an equal opportunity to reach their full potential
• Since the introduction of the Act in 1986, continued progress has been made in federally regulated workplaces for the 4 designated groups under the Act – women, Indigenous peoples, persons with disabilities and members of visible minorities
• However, many workers are still facing barriers to getting a job as well as career advancement
• That’s why we launched a Task Force to conduct a comprehensive review of the Act and advise on how to modernize the federal employment equity framework
• The Task Force has completed its engagement with stakeholders and partners, which included hundreds of stakeholders, such as community organizations, public, private and non-profit sectors as well as advocacy groups and networks. The Task Force has submitted its report [to the Minister of Labour]. The report is now being translated and will be released as soon as possible
• I am confident that the Task Force’s recommendations will support a needed modernization of the employment equity framework that will contribute to a more vibrant and diverse workforce and building a better future for all Canadians

If asked about support for the NDP’s position that the Act should include lesbian, gay, bisexual, transgender, queer and two-spirit communities in the designated groups

• We believe in building a country where every Canadian has a real and fair chance to succeed and contribute to the economy. Creating equitable, diverse, and inclusive workplaces is one of many ways through which we are supporting this goal. This means making sure that individuals from the 2SLGBTQIA+ community are provided with equitable opportunities in our workplaces
• The addition of this community among the designated groups covered under the Act is one of several questions that the Task Force was mandated to study
• The Task Force has conducted extensive consultations and gathered several hundred views from a broad range of stakeholders and communities. We will look closely at the Task Force recommendations in this area

If asked about the Task Force recommendations

• The Task Force heard from hundreds of stakeholders, including community organizations, public, private and non-profit sectors as well as advocacy groups and networks. This included Indigenous partners, women, representatives of Black Canadians and other racialized groups, persons with disabilities, as well as members of 2SLGBTQIA+ communities
• My officials are getting the report translated for public release. They are also reviewing the recommendations to assess their impact and developing options for modernizing the employment equity framework

Issue

The Government is addressing the misclassification of employees in the road transportation industry by taking a firm stance against employers who fail to comply with the Canada Labour Code (the Code) to ensure that all workers in the sector are properly classified and benefit from the standards and protections they are entitled to.

Background

• The road transportation industry is the primary mode for moving freight across Canada and represents the largest sector subject to the Code. There are more than 8,000 federally regulated employers and 260,000 employees in this sector. A growing trend amongst employers in this industry is to have their employees self-incorporate
• On January 1, 2021, amendments to the Code related to misclassification came into force. These provisions make the misclassification of employees a contravention of the Code, and places the burden on the employers to demonstrate that workers are correctly classified
• In 2021, the Labour Program initiated a pilot project to assess the level of compliance in the road transportation industry with the misclassification provisions. The project’s purpose was to identify non-compliant employers, educate them on their obligations under the Code, and apply compliance measures where appropriate. The initial results of the pilot project identified a high number of non-compliant employers
• To address misclassification in the road transportation industry, the 2022 Fall Economic Statement proposed $26.3 million dollars over 5 years, starting in 2023 to 2024 to the Labour Program of ESDC to take stronger action against employers who fail to comply with the Code regarding misclassification
• This funding allows the Labour Program to increase the inspectorate to proactively inspect employers in the road transportation industry and address instances of misclassification. The Labour Program is also collaborating with the Canada Revenue Agency (CRA) to clarify the classification of employees under the Code and the Income Tax Act. Funding is to be confirmed through Supplementary Estimates (A) in June 2023

Key facts

• There has been a growing trend in the federally regulated road transportation industry, whereby employers are misclassifying drivers as independent contractors, rather than employees
• In 2021 to 2022, a pilot project conducted in the Ontario region demonstrated that 60% of employers selected for proactive inspections and information sessions were misclassifying drivers
• Funding was announced in the 2022 Fall Economic Statement to support Labour Program’s efforts to proactively address misclassification in the road transportation industry, and funding is to be confirmed through Supplementary Estimates (A) in June 2023. The $26.3 million dollars over 5 years will fund 43 FTEs per year over the 5-year period

Key messages

• As misclassification has become more common in the federally regulated road transportation industry, through the 2022 Fall Economic Statement, the Government of Canada announced $26.3 million in new funding over the next 5 years to take stronger action against employers who misclassify workers
• With this funding, the Government will support enforcement of the Canada Labour Code so that thousands of workers receive the entitlements and protections they are entitled to under the Code
• These efforts are expected to create workplaces in the road transportation industry that are more fair, safe, respectful, and inclusive for all

If asked what is being done to address abuse of workers’ rights in instances of intentional employee misclassification

• The Labour Program has received funding to address misclassification in the road transportation industry. The funding will be used to expand compliance and enforcement activities in the industry
• The Labour Program is now focused on expanding its efforts and implementing the misclassification compliance strategy on a national scale
• Compliance and enforcement consist of several activities, including education and awareness-building sessions with employers and employees, conducting outreach with partners to promote compliance, and proactive inspections and investigations before issuing Compliance Orders and Administrative Monetary Penalties, if applicable, on employers found to be in contravention of the Canada Labour Code
• The Labour Program is also working with the CRA to ensure that employers and employees are aware of their rights and obligations under the Code and the Income Tax Act

If asked to elaborate on the Gig Worker protections that have been outlined in Budget 2023 and how it will address misclassification

• As noted in the 2023 federal budget, the Government is committed to help more gig workers access job protections under the Canada Labour Code by strengthening prohibitions against employee misclassification
• Over the last few years, we have seen gig and digital platform work rapidly expand to cover more segments of the economy. With the rise of gig work, more and more Canadians are relying on jobs that do not come with the same job protections that are enjoyed by other employees in the economy
• As a result of a lack of job protections, gig workers can often experience precarious working conditions and economic vulnerability
• At the same time, the gig economy offers what can be more easily accessible and flexible employment opportunities to many Canadians, including those who find themselves marginalized from more traditional labour markets
• Over the last 2 years, the Labour Program has undertaken 3 phases of consultations with stakeholders to better understand how current federal labour protections could be updated to better protect gig and digital platform workers
• The results of these consultations are being taken into account as we develop ways to improve job protections for workers in the federally regulated gig economy

Alternate formats

ESDC is requesting a total of $1,478.6 million in additional authorities through the Supplementary Estimates (C), which would bring the total planned spending to $176.6 billion.

Of the $176.6 billion in planned spending for 2022 to 2023, $89.2 billion is reported in the Estimates, of which $87.6 billion are statutory and voted transfer payment programs. Here are a few programs included in ESDC’s Estimates to date:

• Old Age Security Program = $69,003.0 million
• Early Learning and Child Care Program = $5,031.1 million
• Canada Student Loans Program and Canada Apprentice Loans = $4,713.5 million
• Canada Education Savings Program = $1,183.0 million
• Workforce Development Agreements = $922.0 million
• Canada Disability Savings Program = $812.7 million
• One-Time Payment for Guaranteed Income Supplement Recipients who received Pandemic Benefits = $747.5 million
• Youth Employment and Skills Strategy = $702.8 million
• Social Development Partnerships Program = $450.6 million
• Indigenous Early Learning and Child Care Transformation Initiative = $407.0 million
• Sectoral Workforce Solutions Program = $348.4 million
• Indigenous Skills and Employment and Training Program = $235.9 million
• Apprenticeship Service = $213.6 million

The $1,478.6 million requested through Supplementary Estimates (C) is for the following items:

• Funding to write off unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans = $227.5 million
• Funding to increase Old Age Security workload capacity = $41.1 million
• Funding for the Supporting Black Canadian Communities Initiative (Budget 2022) = $24.9 million
• Funding to stabilize information technology to support program delivery = $6.7 million ^{Footnote 0}
• Funding for strong and effective fraud prevention, detection and enforcement controls in departmental benefit programs =$1.8 million*
• Funding to prepare Canadians for jobs of the future through the creation of union-led advisor table (Budget 2022) = $0.6 million
• Transfer from Indigenous Services and Public Health Agency for the Indigenous Early Learning and Child Care Transformation Initiative = $2.6 million
• Transfer from Public Health Agency to support the Indigenous engagement on the Disability Inclusion Action Plan and the National Autism Strategy = $0.4 million
• Internal reallocation of resources from contributions ($7.5 million) to the grant entitled One-Time Payment for Guaranteed Income Supplement Recipients who received Pandemic Benefits = N/A
• Transfer to Infrastructure Canada for the Reaching Home Results Reporting Platform = $-0.9 million
• Transfer to Crown-Indigenous Relations and Northern Affairs to support Indigenous Early Learning and Child Care = $-4.0 million
• Transfer to Indigenous Services to support the First Nations and Inuit Youth Employment Strategy = $-13.0 million

Adjustments to Budgetary Statutory forecasts:

• Old Age Security (including Guaranteed Income Supplement and Allowances) = $1,097.0 million
• Canada Recovery Benefits (Canada Recovery Benefit, Canada Recovery Caregiving Benefit, and Canada Recovery Sickness Benefit) = $19.6 million
• Canada Disability Savings Program (Grant and Bond) = $121.6 million
• Canada Workers Lockdown Benefit = $-5.8 million
• Contribution to employee benefit plans = $8.9 million
• Canada Student Loans Program = $-3.3 million
• Canada Education Savings Program (Grant and Bond) = $-48.0 million
• Universal Child Care Benefit = $0.9 million

Alternate formats

• Labour Funding Program – International Labour Affairs = $7.3 million
• Labour Funding Program – Workplace Equity = $2.5 million
• Workplace Harassment and Violence Prevention Fund = $3.5 million

ESDC footprint has a total of 397 sites, which include the above Service Canada Centres, general office spaces, passport print, processing and call centre locations.

As of April 1, 2023, ESDC’s total number of Full-Time Equivalents (FTE) (including Passport employees) is 36,976.

Mandate Letter commitment - 1

Continue to work with federally regulated workplaces to ensure that COVID-19 vaccination is enforced.

Mandate Letter commitment - 2

Amend the Canada Labour Code to provide 10 paid days of sick leave for all federally regulated workers.

Mandate Letter commitment - 3

Convene provinces and territories to develop a national action plan to legislate sick leave across the country while respecting provincial-territorial jurisdiction and the unique needs of small business owners.

Mandate Letter commitment - 4

Develop a right-to-disconnect policy.

Mandate Letter commitment - 5

Amend the Canada Labour Code to include mental health as a specific element of occupational health and safety and require federally regulated employers to address workplace stress and injury.

Mandate Letter commitment - 6

Amend the Canada Labour Code to provide up to 5 new paid leave days for federally regulated employees who experience a miscarriage or stillbirth.

Mandate Letter commitment - 7

Amend the Canada Labour Code to strengthen provisions to better support working women who need to be re-assigned during pregnancy and while breast-feeding.

Mandate Letter commitment - 8

Continue working with the provinces and territories to fully implement the International Labour Organization (ILO) Violence and Harassment Convention.

Mandate Letter commitment - 9

Lead the efforts to require federally regulated employers to provide menstrual products in the workplace to help ensure menstruating employees' participation in work.

Mandate Letter commitment - 10

Accelerate the review of the Employment Equity Act and ensure timely implementation of improvements.

Mandate Letter commitment - 11

Modernize the Federal Contractors Program to ensure federal contractors are paying their employees the federal minimum wage.

Mandate Letter commitment - 12

Advance the implementation of the Pay Equity Act across federally regulated workplaces.

Mandate Letter commitment - 13

Advance legislation to prohibit the use of replacement workers in federally regulated workplaces when a unionized employer has locked out its employees.

Mandate Letter commitment - 14

Work to advance amendments that entitle workers employed by digital platforms to job protections under the Canada Labour Code.

(Improve labour protections for gig workers)

Mandate Letter commitment - 15

Introduce legislation to eradicate forced labour from supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses (shared commitment with ministers responsible for public safety, federal procurement and international trade).

Mandate Letter commitment - 16

Strengthen harassment and violence prevention measures in federally regulated workplaces.

Mandate Letter commitment - 17

Work with the Minister of Natural Resources in moving forward with legislation and comprehensive action to achieve a Sustainable Jobs Transition.