HUMA Committee briefing binder: Appearance by the Minister Labour and Seniors – November 19, 2024

Overview

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) has invited you to appear as per the motion adopted on September 17, 2024: It was agreed that the committee invite Ministers of Employment, Workforce Development and Official Languages, Housing, Infrastructure and Communities, Diversity, Inclusion and Persons with Disabilities, Labour and Seniors, Families, Children and Social Development, and Citizens' Services to appear separately before the committee for no less than 2 hours each, within 28 days of the adoption of this motion, in relation to Supplementary Estimates (B) and their priorities for the return of parliament and their mandates.

Committee proceedings

Your appearance is scheduled to take place on November 19, 2024, from 11:00 a.m. to noon. Other ESDC Ministers will appear at later dates.

You will be accompanied by:

• Gary Robertson, Senior Assistant Deputy Minister, Policy, Dispute Resolution and International Affairs, Labour Program
• Wojo Zielonka, Chief Financial Officer, ESDC
• Elisha Ram, Senior Assistant Deputy Minister, Income Security and Social Development, ESDC

You have no outstanding follow up written responses due to the Committee.

You have the following outstanding correspondence to HUMA members/critics:

• Bonita Zarrillo: October 10, 2024 Meeting request to the Minister of Labour and Seniors, to discuss ways to improve working conditions in the airline industry
• Matthew Green, Taylor Bachrach, and Bonita Zarrillo : November 1, 2024 Letter addressed to the Minister of Labour and Seniors regarding the ongoing negotiations between ILWU Local 514 and the BC Maritime Employers Association

HUMA has agreed that timing for Committee members would be precisely allocated, per each round. In round 1, there are 6 minutes for each party in the following order:

• Conservative Party
• Liberal Party
• Bloc Québécois
• New Democratic Party

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
• Liberal Party, 5 minutes

Parliamentary environment

Given the scope of the appearance, you can expect to receive questions on very broad range of issues which include:

Labour disruptions in the federally regulated sector

• Solutions for ongoing disruptions
• The use of ministerial directive through section 107 to end labour disruptions

Supports for seniors

Royal recommendation for Bill C-319, An Act to amend the Old Age Security Act (amount of full pension)

Flight attendants

• Rates of pay and hours paid, likely in relation to the motion moved by Ms. Zarrillo during the committee meeting on October 31, 2024. Debate was adjourned
• PMBs (currently outside the Order of Precedence)
  • Bill C-409, An Act to amend the Canada Labour Code (hours of work of flight attendants) – Sponsor: Lianne Rood (CPC, Lambton—Kent—Middlesex)
  • Bill C-415, An Act to amend the Canada Labour Code (flight attendants) – Sponsor: Bonita Zarrillo (NDP, Port Moody—Coquitlam)

The use of contractors and ‘temporary foreign workers

During the committee's study on Compensation Disparities Between Unionized and Non-Unionized Workers in Canada, there were multiple references made by CPC members to the government's contracting of ‘temporary foreign workers' at the Stellantis battery plant during exchanges with Scott Archer (UA Local 663). Both the CPC members and Mr. Archer noted that these contracts resulted in lost wages and employment for approximately 300 workers in his union.

Forced Labour

The Standing Committee on International Trade (CIIT) tabled a report in the House of Commons on October 30. 2024 regarding the failure of the government to fulfil its commitment to introduce legislation by 2024 to eliminate forced labour from Canadian supply chains and to strengthen the ban on the importation of goods produced by forced labour. Though this is outside the purview of HUMA, questions may still arise in connection to its relation to the December 16, 2021 Minister of Labour Mandate Letter.

Safe long-term care

Timelines for introduction of legislation.

Overview of Minister MacKinnon's mandate letter commitments: Labour

Standing committee on human resources, skills and social development and the status of Persons with Disabilities - November 19, 2024

Issue

Preventing employees' misclassification in the road transportation industry and entitling digital platform workers to job protections under the Canada Labour Code.

Background

The Minister of Labour and Seniors has a mandate letter commitment to "advance amendments that entitle workers employed by digital platforms to job protections under the Canada Labour Code (Code).

Employee misclassification

• There is a growing trend among employers in the road transportation industry to compel drivers to self-incorporate. The self-incorporated driver model can be a legitimate business model when used appropriately, but some businesses have abused this model, treating drivers as independent contractors when they should be treated as employees
• Provisions for combatting employees' misclassification were first added to the Code in 2021, when it became prohibited for employers to treat an employee as if they were not their employee. A pilot project launched in the Ontario Region to support the new misclassification measures uncovered widespread misclassification in the road transportation industry
• Subsequently, the 2022 Fall Economic Statement committed $26.3 million over 5 years to the Labour Program to amplify enforcement and compliance activities needed to combat employees' misclassification in the federally regulated road transportation industry. Since then, the Labour Program has established a dedicated team that conducts inspections of workplaces where employers are suspected to be misclassifying employees
• To further bolster compliance and enforcement respecting the prohibition on misclassification, Budget 2024 announced that Employment and Social Development Canada and the Canada Revenue Agency (CRA) would enter into data-sharing agreements. The Labour Program and CRA have since established a working group to prepare a Memorandum of Understanding to facilitate information sharing

Gig workers

• The Minister's commitment entails collaborating with the Minister of Employment, Workforce Development and Disability Inclusion to ensure better benefits and supports for workers employed by digital platforms (gig workers)
• Labour Program officials held two phases of public and stakeholder consultations from February 2021 to July 2021 to discuss issues in the gig economy and potential policy responses. In December 2022, officials carried out additional targeted consultations focused on legislative amendments aimed at addressing the issue of misclassification
• In Budget 2024, the government proposed to amend the Code to improve job protections for federally regulated gig workers by strengthening prohibitions against employees' misclassification
• Amendments to ensure federally regulated gig workers have access to rights, protections and entitlements under the Code were introduced in the Budget Implementation Act, 2024, No. 1, and came into force on Royal Assent in June 2024. These changes strengthen the prohibition on misclassification that already existed in the Code
• The amendments introduced a presumption that all workers, including gig workers, are employees unless proven otherwise. Other amendments include:
  • a prohibition against misclassification of an employee as an independent contractor in Parts I (Industrial Relations) and Ⅱ (Occupational Health and Safety) of the Code
  • a strengthened prohibition against misclassification in Part Ⅲ (Labour Standards) of the Code
  • a burden of proof on the employer in the event a worker's employee status is contested, except during prosecutions
• Workers who are true independent contractors are not affected by these amendments

Key facts

• Gig workers and digital platform workers, like misclassified truck drivers, have been generally treated as self-employed independent contractors and therefore 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 medical leave, overtime pay, severance pay)
  • other employment related benefits, such as Employment Insurance
• Initiatives to entitle these workers to protections under the Code are intended to address the same concerns—the misclassification of employees
• Misclassification occurs when an employer treats a worker, who meets the criteria to be an employee, as someone other than an employee. For example, as an independent contractor
• As a result of misclassification, some gig workers experience precarious working conditions and economic vulnerability, including low and unpredictable earnings, unpredictable schedules, and unpaid work time. The amendments to the Code ensure gig workers are better protected
• Statistics, Employment and Social Development Canada estimates that there may be up to 41,000 gig workers in the federally regulated private sector
• Roughly 63% of these workers operate in the interprovincial road transportation sector, 15% are in the courier and postal services sector, and 10% are in the telecommunication and broadcasting sector. The remaining 12% are distributed across other federally regulated sectors such as air, rail and maritime transportation, and banking
• Gig work and platform work generally falls under provincial and territorial labour jurisdiction. This includes the most well-known forms of gig work, such as driving for Uber and Lyft, or delivering food for SkipTheDishes

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 better access to their labour protections
• To make sure that we got 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 were taken into account as we developed legislation to improve job protections for workers in the gig economy
• In this year's budget legislation, we introduced amendments to the Canada Labour Code to improve job protections for federally regulated gig workers by strengthening prohibitions against employee misclassification
• The amendments also introduced a presumption that all workers, including gig workers, are employees unless proven otherwise
• These amendments better protect gig workers in federally regulated sectors, but do not affect true independent entrepreneurs
• As misclassification has become a common practice in the federally regulated road transportation industry, the Government of Canada announced $26.3 million over 5 years in funding for the Labour Program to take strong action against non-compliant employers to enforce the Code
• With this funding, the Government is enforcing the Canada Labour Code so that thousands of workers receive the rights and protections they are entitled to under the Code
• Additionally, in Budget 2024, the government directed Employment and Social Development Canada and the Canada Revenue Agency to enter into necessary data-sharing agreements to facilitate inspections and enforcement
• An action plan to establish an Information Sharing Agreement was developed and agreed on by both departments by June 30, 2024, as suggested by the Department of Finance. The work is currently underway to identify the information that both departments can share to support enforcement, considering current program and policy framework as well as potential legislative changes that may be required
• These efforts are expected to create workplaces in the road transportation industry that are fair, safe, respectful, and inclusive for all

Issue

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

Background

• The Minister of Labour and Seniors has a mandate letter commitment to 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 the Act was introduced in 1986, progress has been made to correct conditions of disadvantage in employment experienced by 4 designated groups: persons with disabilities, women, Indigenous peoples and members of visible minorities. However, some workers continue to face barriers to equity
• On July 14, 2021, the Government launched a Task Force, composed of 12 members from various backgrounds and fields of expertise, including the Chairperson, Professor Adelle Blackett, to conduct an independent review and provide recommendations on how to modernize the Employment Equity Act
• The Task Force heard from hundreds of 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, 2SLGBTQI+ Canadians, Indigenous peoples, Black and racialized Canadians, persons with disabilities and other underrepresented groups, including faith-based networks. Overall, the Task Force held over 100 meetings that involved more than 300 participants representing over 175 organizations. The Task Force also received over 400 written submissions covering the full scope of the Employment Equity Act review, and an additional 350 expressions of views shared via electronic correspondence
• On December 11, 2023, the Minister of Labour and Seniors, accompanied by the former Chairperson of the Task Force, Professor Blackett, released the report of the Task Force, A Transformative Framework to Achieve and Sustain Employment Equity. The report is comprehensive and includes 187 recommendations covering both the human rights principles to guide the proposed changes and specific actions for implementing those changes
• In response, the Government announced its initial commitments to modernize the Employment Equity Act, including:
  • creating 2 new designated groups under the Act: Black people and 2SLGBTQI+ people
  • replacing the term "Aboriginal Peoples" with "Indigenous Peoples," and updating the definition to include First Nations, Métis and Inuit and to ensure it is consistent with the United Nations Declaration on the Rights of Indigenous Peoples Act
  • replacing the term "members of visible minorities" with "racialized people" and updating the corresponding definition
  • aligning the definition of "persons with disabilities" with the Accessible Canada Act to make it more inclusive
• Budget 2024 confirmed the government's intention to propose legislative amendments to modernize the Act, including by expanding designated equity groups
• To inform these amendments and how to best implement the modernization, the Labour Program held 18 virtual roundtable sessions with more than 80 participating organizations, as well as bilateral meetings with Indigenous partners. In addition, the Labour Program received more than 150 written submissions from a variety of partners and stakeholders representing employers, unions and employees and equity communities. As the employer of the core public administration, officials from Treasury Board Secretariat (TBS) engaged more than 20 deputy heads and hosted engagement sessions with a total of 2,835 public servants, including equity champions, equity networks and human resources teams

Key facts

• According to the 2023 Employment Equity Act Annual Report, in federally regulated private sector employers covered under the Employment Equity Act:
  • women accounted for 39.8% of the workforce, compared with 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 4.9% of the workforce, compared with 9.1% labour market availability
  • members of visible minorities accounted for 28.8% of the workforce, compared with 21.3% labour market availability
• Within the core public administration:
  • women (56.6%) exceeded the labour market availability (53.7%)
  • Indigenous peoples accounted for 5.3% of the workforce, compared with 3.8% labour market availability
  • persons with disabilities accounted for 6.9% of the workforce compared with 9.2% labour market availability
  • members of visible minorities accounted for 21.7% of the workforce, compared with 17.3% labour market availability

Key messages

• Diversity is Canada's strength, and one of the ways the Government of Canada promotes equality and diversity is through the Employment Equity Act
• Since its introduction in 1986, progress has been made in removing barriers to employment 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 still face barriers getting a job and advancing their career. 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 Government welcomes and broadly supports the Task Force's recommendations for transforming Canada's approach to employment equity
• In response, the Government announced its initial commitments to modernize the Employment Equity Act. These include:
  • creating 2 new designated groups under the Act: Black people and 2SLGBTQI+ people
  • replacing the term "Aboriginal Peoples" with "Indigenous Peoples," and updating the definition to include First Nations, Métis and Inuit and to ensure it is consistent with the United Nations Declaration on the Rights of Indigenous Peoples Act
  • replacing the term "members of visible minorities" with "racialized people" and updating the corresponding definition
  • aligning the definition of "persons with disabilities" with the Accessible Canada Act to make it more inclusive
• Budget 2024 confirmed the Government's intention to propose legislative amendments to modernize the Employment Equity Act, including by expanding designated equity groups
• To inform these amendments and how to best implement the modernization, the Government held consultations from May to August 2024 with a variety of partners and stakeholders representing employers, unions and employees and equity communities. The feedback from this consultation will be summarized and published online, and will help inform potential changes to the Employment Equity Act
• A renewed Act that reflects today's realities will help create a more vibrant and diverse workforce. More importantly, it will help build a country where everyone has a fair and equal chance to reach their full potential

Issue

The Fall Economic Statement announced on November 21, 2023, the introduction of a new, 15-week shareable benefit in the Employment Insurance (EI) program for parents through adoption or surrogacy, along with corresponding changes to the Canada Labour Code to ensure job-protected leave for employees in the federally regulated private sector. The legislative amendments were introduced in the Fall Economic Statement Implementation Act, 2023, and received royal assent in June 2024.

Background

The new EI benefit would fulfill the Government of Canada's commitment to "introduce a new 15-week benefit for adoptive parents," as outlined in the 2021 mandate letter to the then Minister of Employment, Workforce Development and Disability Inclusion.

It would apply to the same types of placements for the purposes of adoption already covered by EI parental benefits, such as those under the adoption law in a province or territory, Indigenous customary adoptions under an applicable Indigenous law in the province or territory in which the person resides, and placements under a foster-to-adoption program.

Once this new benefit is in place, parents through adoption or surrogacy will be able to combine it with parental benefits, which would provide access to the same total number of weeks of EI income support as birth parents, for example, 15 weeks of maternity or adoption benefits, combined with parental benefits (up to 40 shareable weeks of standard parental benefits at 55% replacement rate or up to 69 shareable weeks under the extended parental option at 33% replacement rate).

A surrogate can receive maternity benefits because they experienced pregnancy or childbirth, but not parental benefits.

Once this benefit is in place, it will also bring EI more in line with benefits offered to parents in Quebec through the Quebec Parental Insurance Plan (QPIP). Parents through birth, adoption or surrogacy would have access to the same number of weeks of benefits available under their regime (EI or QPIP).

The new EI benefit for parents through adoption or surrogacy would focus on the responsibilities carried out by parents related to the placement of a child(ren) for the purpose of adoption or, in situations such as surrogacy, related to the arrival of a new-born child(ren) under their care.

As such, parents could receive the benefit within a period that would begin the earlier of 5 weeks prior to the week of the expected placement of the child(ren) or arrival of the new-born child(ren), or the week in which the actual placement or arrival occurs. Benefits would be payable up to 17 weeks after the week of the actual placement or arrival. This period would provide flexibility to parents to claim the benefit in a way that best suits their needs.

Associated amendments to the Canada Labour Code would provide employees in the federally regulated workplaces with up to 16 weeks of unpaid job-protected leave. The leave duration provides 1 additional week of job-protected leave to allow EI claimants to serve the 1-week waiting period prior to receiving their benefits.

The federally regulated private sector includes about 1,020,000 employees (or 6% of all Canadian employees) working for 19,150 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. Part Ⅲ does not apply to the federal public service.

Key facts

The 2023 Fall Economic Statement announced the introduction of a new 15-week shareable EI adoption benefit, at an estimated cost of $48.1 million over 6 years and $12.6 million per year ongoing from the EI Operating Account.

This benefit is expected to support approximately 1,700 Canadian parents each year, including 2SLGBTQI+ parents, providing additional EI support to those who become parents through adoption and surrogacy and need to step away from work as they finalize the placement of the child(ren).

Providing adoptive parents with more time and flexibility to spend with their child in the critical period surrounding the placement for adoption can lead to more successful family formation, reduce anxiety for the parents and child, who often experienced traumatic events, and establish trust. This would indirectly help the child(ren) adapt to a new home, school, routines and access services.

Key messages

On November 21, 2023, the Minister of Finance announced that a new, 15-week shareable benefit for parents through adoption or surrogacy would be introduced in the EI program in her Fall Economic Statement.

The new benefit would support approximately 1,700 parents through adoption or surrogacy each year with additional EI benefits to carry out their responsibilities related to the placement or arrival of the child or children and will make the program more inclusive for various types of Canadian families, including 2SLGBTQI+ parents and families.

Parents could combine the new benefit with the existing EI parental benefit, making the total number of weeks of income support the same as that of birth parents who can combine maternity and parental benefits.

We are actively working with departmental officials to implement this important support measure, including drafting supporting regulations pertaining to the Employment Insurance Act and the Canada Labour Code. It will come into force on a date fixed by Order of the Governor in Council. We will make an announcement when more information is available.

Issue

Ongoing labour disputes and section 107 of the Canada Labour Code.

Background

• Under section 107 of the Canada Labour Code (the Code), the Minister of Labour may refer any question or direct the Canada Industrial Relations Board (CIRB) to do things as to the Minister seem likely to maintain or secure industrial peace and to promote conditions favourable to the settlement of disputes
• On August 22, 2024, 3 concurrent work stoppages began in the disputes involving the Canadian National Railway (CN), Canadian Pacific Kansas City Railway (CPKC), and the Teamsters Canada Rail Conference (TCRC)
• Also, on August 22, 2024, the Minister of Labour and Seniors invoked section 107 of the Code and directed the CIRB to assist the parties in reaching a settlement of the outstanding terms of their collective agreements by imposing final binding arbitration and for operations at both railways to resume. The CIRB followed the Minister's directions and effectively ordered an end to the disputes
• On August 29, 2024, the TCRC filed applications for judicial review in the Federal Court and Federal Court of Appeal challenging the ministerial directions and the CIRB's decision to implement the ministerial directions. It is not known when a final decision will be rendered

Key facts

Other ongoing key disputes in federally regulated sectors.

Key messages

Issue

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

Background

• The Minister of Labour and Seniors has a mandate letter commitment to continue advancing the implementation of the Pay Equity Act (Act) across federally regulated workplaces
• The Act and Pay Equity Regulations came into force on August 31, 2021. The Act requires federally regulated employers with an average of 10 or more employees, in a given year, to take proactive steps to ensure that workers receive equal pay for work of equal value
• In June 2024, the Labour Program published two sets of regulations in the Canada Gazette, Part Ⅱ to support the advancement of the Act
• The Regulations Amending the Pay Equity Regulations (Administrative Monetary Penalties and Technical Amendments) strengthen the Pay Equity Commissioner's ability to encourage compliance with the Act. More specifically, the regulations:
  • operationalize an administrative monetary penalties system so that employers who do not meet their pay equity framework obligations can face fines
  • support the collection of additional data to better measure the gender wage gap and the impact of the new framework
  • make minor technical amendments to provide clarity on employers' obligations and align some parts of the Act with the Canada Labour Code
• The second set of regulations, Application of the Pay Equity Act to Ministers' Offices Regulations and the Order Grouping Ministers' Offices for the Purpose of a Pay Equity Plan, support the application of the Act in ministers' offices. More specifically, the regulations:
  • ensure all ministers' offices are subject to the Act, regardless of the number of ministerial staff they employ
  • group all ministers' offices for the purpose of developing 1 pay equity plan for all ministerial staff
  • provide that the lead minister has 3 years to complete the first pay equity plan starting on the day the Order to group ministers is made to ensure there is sufficient time to complete the first pay equity plan
  • require that the group of ministers' offices update their pay equity plan at least every 3 years, as opposed to the 5 years provided in the Act
  • provide that the pay equity process is a continuous exercise for the grouped ministers' offices, and only restarts with a new Prime Minister
• The Pay Equity Commissioner has granted the Treasury Board Secretariat extensions to develop the first pay equity plans for the Canadian Armed Forces (CAF), the Core Public Administration (CPA) and the Royal Canadian Mounted Police (RCMP). Pay equity plans are now due as follows:
  • CAF: by August 31, 2026 (2-year extension)
  • RCMP: by February 28, 2026 (18-month extension)
  • CPA: by August 31, 2027 (3-year extension)
• Employees under these plans who may be entitled to a compensation increase under the final plans will receive that increase, as well as interest, backdated to the original deadline of September 4, 2024
• The Act does not currently apply to Indigenous governing bodies, such as First Nations band councils, which are exempt from the application of the Act until a date specified by the Governor in Council. This delay allows the Government the time needed to engage with Indigenous partners and rights holders on how and to what extent the Act should apply to Indigenous governing bodies. Engagement between the Labour Program and national Indigenous partners and rights holders is ongoing

Key facts

• The 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
• In Canada in 2022, for every dollar a man earned, a woman earned 89 cents on the dollar, as measured in hourly wages for full-time workers
• As of 2022, 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 Act also applies to parliamentary workplaces, such as the Senate, House of Commons, Library of Parliament, and Members of Parliament through corresponding amendments to the Parliamentary Employment and Staff Relations Act
• 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 to identify and close any gaps that may emerge
• The Act is administered and enforced by the Pay Equity Commissioner, Lori Straznicky, who is a full-time member of the Canadian Human Rights Commission. Ms. Straznicky was appointed as the Pay Equity Commissioner on November 1, 2023, for a term of 5 years. She is supported by the Pay Equity Unit at 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 federally public and private sector employers to take proactive steps to ensure that they are providing equal pay for work of equal value. The legislation has brought about a dramatic shift in how the right to pay equity is protected in federally regulated workplaces
• The Pay Equity Act is administered and enforced by Lori Straznicky, the federal Pay Equity Commissioner, who is supported by the Pay Equity Unit at the Canadian Human Rights Commission
• In June 2024, the Government introduced 2 sets of regulations to further support the implementation of the Pay Equity Act. These regulations strengthen the Pay Equity Commissioner's ability to encourage compliance and support the application of the Act in ministers' offices
• Altogether, the Pay Equity Act and supporting regulations will bring change to workplaces by reducing pay gaps and protecting pay equity for employees in federally regulated workplaces

Issue

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

Background

• A pay gap is the average difference between what 2 groups typically earn. A pay gap provides a basic understanding of what the pay balance looks like within an organization. It is determined by comparing the pay of a subject group (for example, women) to a comparator group (for example, men) and expressing it as a dollar value
• Despite narrowing educational and work experience gaps, the gap in pay between men and women persists among workers in Canada. Some of the reasons cited for this ongoing disparity include:
  • inflexibility in standard hours of work
  • workforce interruptions
  • lower likelihood of negotiation over salary, raises, and promotions
  • gender discrimination in hiring
• Pay gap reporting is about making pay gap information publicly available so it can help to shift business culture and expectations towards greater equality for the 4 designated groups (women, Indigenous peoples, persons with disabilities and members of visible minorities). Since 1986, federally regulated employers have provided pay information as part of their reporting obligations under the Act. Prior to the 2022 reporting cycle, the employment equity reports submitted annually by employers were publicly available online but pay gap data was not highlighted
• With the release of Equi'Vision on Canada.ca, Canadians may access user-friendly, comparative online information on designated group representation rates and pay gaps for each federally regulated private-sector employer. Individual employee information, including data related to individual salaries, is not reported nor published

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 as measured in hourly wages for full-time workers
• Among federally regulated private-sector employees in permanent full-time positions in 2021, 82.4% of men and 72.3% of women earned $50,000 and more per year. This compares to:
  • 80.5% of Indigenous men and 67.3% of Indigenous women
  • 82.3% of men with disabilities and 73.6% of women with disabilities
  • 79.7% of visible minority men and 70.6% 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. 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
• Employers reported their first pay gap information for the 2021 reporting year on June 1, 2022. This information was published for the first time on February 2, 2024. The launch was featured in articles posted by 14 different media outlets (for example, Globe and Mail; Canadian Press) and those same articles were carried by an additional 30 local medi.a outlets (for example, CTV News; Toronto Star; Ottawa Citizen)
• On May 31, 2024, employers' 2022 data was added to Equi'Vision. Data from the 2023 reporting year will be added in January 2025
• The Government's new pay transparency measures makes publicly available pay gap information for women, Indigenous peoples, persons with disabilities and members of visible minorities

Key messages

• We are the first country to publish pay gaps that go beyond gender on a new website – Equi'Vision. The website provides the public with information on representation rates and pay gaps for women, Indigenous peoples, persons with disabilities and members of visible minorities
• The online information includes comparable pay gap information for each employer comprising 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 provides the information needed, so that employers and workers find a solution to recognize the value of all workers
• The UK has tried this, 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

In 2021, the Government of Canada announced its commitment to modernize the Federal Contractors Program (FCP) to ensure federal contractors pay their employees the federal minimum wage.

Background

• The Federal Minimum Wage (currently $17.30 CAD)^{Footnote 1} is enforced through the Canada Labour Code (Code) on federally regulated employers. Federal contractors are not subject to the Code, they are subject to provincial or territorial labour standards legislation
• The intent of the federal minimum wage initiative was to ensure that suppliers to the federal government pay wages that are commensurate with the level of education, training, and responsibilities employees are required to have for their jobs
• The FCP 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 worked collaboratively to identify what the modernization would involve in establishing a coordinated approach and implement this commitment in the most effective way possible. In light of the complexities the modernization would entail, the item will no longer be pursued

Key facts

• In the 2021 mandate letter, the Minister of Labour was asked to implement the federal minimum wage through a modernized FCP
• The FCP applies to provincially regulated organizations that have a combined workforce of 100 or more permanent 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 over 400 contractors under the FCP based on the $1 million contract value threshold, which represents a fraction of the unique contractors with PSPC

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
• The Labour Program worked with PSPC, the largest federal contracting department, to explore a coordinated approach and implement this commitment in the most effective way possible
• As a result of this collaboration, it was determined that there was currently no practical or enforceable way within the federal government's authorities to ensure federal contractors are paying their employees the federal minimum wage. We will no longer be pursuing this mandate item. We remain committed to supporting workers and our economic recovery

Issue

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

Background

• The Minister of Labour and Seniors has a mandate commitment to complete the development of a right to disconnect policy, in consultation with federally regulated employers and labour groups
• The Right to Disconnect Advisory Committee was formed in 2020 with representatives from federally regulated employers, unions and non-governmental organizations
• The Committee's final report was published in February 2022 and is available online. While Committee members agreed work-life balance was essential, they were unable to come to a joint recommendation on the need to legislate right to disconnect policies. Unions and non-governmental organizations (NGOs) supported a legislative requirement to establish right to disconnect policies, whereas employers were opposed
• Budget 2024 "proposes to provide $3.6 million over 5 years, starting in 2024 to 2025, and $0.6 million ongoing to enable the Labour Program to implement legislative amendments to the Canada Labour Code that would require employers in federally regulated sectors to establish a right to disconnect policy limiting work-related communication outside of scheduled working hours"
• Amendments were introduced in the Budget Implementation Act, 2024, No. 1, and will come into force on a date fixed by an Order in Council, expected in 2025. Once in force, federally regulated employers will be required to:
  • issue a policy that includes the employer's expectations for work-related communication outside scheduled hours of work and any opportunity for employees to disconnect
  • review and update the policy every 3 years
  • consult with employees when developing or updating the policy
  • keep records of the policy and consultations
  • post and provide the policy to employees
• Amendments will also authorize the Governor in Council to make regulations to specify how labour standards, such as hours of work and overtime, apply to work-related communication outside scheduled hours of 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 how labour standards apply to new workplace realities such as remote work and electronic communication outside of scheduled working hours, especially through digital devices

Key facts

• Remote work is the new norm. In 2023, 20% of Canadians worked most of their hours from home, compared to just 7% in 2016
• 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
• In the 2022 Survey of Employees under Federal Jurisdiction, about 25% of employees in federally regulated industries indicated sending/answering work-related emails, calls or texts outside of working hours every day, equivalent to 250,000 employees. About 60% of them say that this was expected by their employer

Key messages

• The Minister of Labour and Seniors was given a mandate commitment to complete the development of a right to disconnect policy, in consultation with federally regulated employers and labour groups
• In Budget 2024, the Government introduced legislation to restore work-life balance for the many employees in federally regulated industries
• Once in force, amendments to the Canada Labour Code will ensure employer expectations are clear, employee work-life balance is better protected, and employees are compensated fairly for engaging in work-related communication outside of their scheduled hours of work
• Federally regulated employers will be required to consult with employees or unions and issue a policy that includes the employer's expectations for work-related communication outside scheduled hours of work and any opportunity for employees to disconnect
• Employers are also expected to comply with existing requirements of the Canada Labour Code to compensate employees fairly for engaging in work-related communication outside of their scheduled hours of work. Efforts are now underway to complete the required regulations and necessary guidance materials to bring these amendments into force
• Amendments will also authorize the Governor in Council to make regulations to specify how labour standards, such as hours of work and overtime, apply to work-related communication outside scheduled hours of work
• Evidence shows that disconnecting from work is critical to well-being and productivity. Right to disconnect policies can reduce the informal expectation that employees must remain constantly connected, while maintaining the flexibility employers need to keep the economy moving
• The Canada Labour Code already includes many protections for workers, including maximum hours of work, overtime and the right to refuse overtime. We want to ensure employees are paid when they work extra hours, and not prohibit overtime

Issue

Private Member's Bill C-378, An Act amending the Canada Labour Code (complaints by former employees), was introduced by Conservative Member of Parliament Dominique Vien on February 12, 2024.

Background

• The bill proposes to provide former employees covered by Part Ⅱ of the Canada Labour Code (Code) with more time to:
  • report incidents of workplace harassment and violence
  • file complaints if they believe their employer failed to fulfill their legal obligations relating to an occurrence of workplace harassment and violence
• Former employees would have 2 years after their employment ends to report an occurrence and/or to file a complaint, instead of the current 3 months

Key facts

• Part Ⅱ of the Code applies to federally regulated public and private sector work places. This includes approximately 1.36 million employees and 19,600 employers (approximately 7.9% of all employees and 1.5% of all employers in Canada), working in industries such as banking, telecommunications, broadcasting, and inter‑provincial and international transportation (including air, rail, maritime and road transportation), federal Crown corporations, the federal public service, the Royal Canadian Mounted Police (RCMP), parliamentary workplaces, and First Nations Band Councils. Part Ⅱ of the Code does not apply to the Canadian Armed Forces
• The current rules under the Code relating to notices of occurrences and complaints by former employees came into force on January 1, 2021, under 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
• Under Bill C-65, former employees have 3 months after they cease employment to report incidents of workplace harassment and violence to their former employer. They also have 3 months after ceasing employment to make a complaint if they believe their former employer failed to fulfill their duties regarding an occurrence of workplace harassment and violence
• Bill C-378 is the first Private Member's Bill to propose amendments to Part Ⅱ of the Code regarding harassment and violence since the provisions came into force under Bill C-65 in 2021
• Given that Bill C-378 is a Private Member's Bill, stakeholders in the federally regulated public and private sectors have not been consulted on the proposed amendments

Key messages

• There is no room for harassment and violence in Canadian work places
• The Canada Labour Code and the Work Place Harassment and Violence Prevention Regulations help to protect employees in federally regulated work places by requiring employers to take steps to prevent, protect against, and respond to work place harassment and violence
• In particular, they include provisions to prevent harassment and violence through:
  • a comprehensive prevention policy
  • training
  • a resolution process that provides multiple options for seeking resolution
  • improved data collection
• Harassment and violence have a profound negative effect on workers. I understand that the proposed amendments would provide more time for former employees to provide a notice of an occurrence of work place harassment and violence or make a complaint relating to their employer's duties regarding work place harassment and violence
• The Government will continue its efforts to help create safer work places, where everyone is included, respected, and protected. This includes undertaking a planned 5-year legislative review of the harassment and violence prevention framework beginning in 2026, which will provide an opportunity to evaluate its successes and identify if any potential changes are needed to address stakeholder needs

Issue

Whether to amend the Canada Labour Code (Code) to list work activities performed by flight attendants and their rates of wage.

Background

• Private Member's Bill C-409, An Act to amend the Canada Labour Code (hours of work of flight attendants), was introduced by Member of Parliament Lianne Rood (Conservative Party of Canada) on June 19, 2024. It seeks to amend the Code to specify that a flight attendant be paid for the following activities:
  • pre-flight and post-flight duties for aircraft security and passenger service
  • mandatory training
  • attending at the workplace at the employer's disposal (for example, delayed flight)
• Private Member's Bill C-415, An Act to amend the Canada Labour Code (flight attendants), introduced by Member of Parliament Bonita Zarrillo (New Democratic Party) on October 21, 2024, seeks similar amendments, and adds that:
  • flight attendants must be paid no less than their regular rate of wages for these work activities
• On October 31, 2024, at the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA), Member of Parliament Bonita Zarrillo moved a motion that the Committee should report to the House that the Government support flight attendants by amending the Code. The motion has not yet been adopted as of November 6, 2024

Key facts

• Part Ⅲ of the Code establishes minimum labour standards (for example, hours of work, payment of wages, protected leaves) for 1,020,000 employees in the federally regulated private sector (or 6% of all Canadian employees)
• The Labour Program develops Interpretations, Policies and Guidelines (IPGs) to ensure consistent interpretation of the Code
  • The general interpretation of "work" in IPG-002's includes: training, time spent at the employer's disposal at the worksite waiting to be assigned work, and time spent while on break but remaining at the employer's disposal
• Part Ⅲ of the Code also provides that employers must pay employees "no less than the minimum wage for all hours of work"
• Moreover, approximately 90% of flight attendants are unionized. Collective agreements can provide different benefits and rights (including the definition of work and rates of wage) if they are equal to or more favourable than provided under Part Ⅲ of the Code
• Should an employee believe that their employer has contravened the Code, they have the right to file a complaint with the Labour Program. Unionized employees should also follow the recourse options available in their collective agreement
• Following an investigation, should an employer be found to have contravened the Code, the appropriate compliance and enforcement measures would be applied, including issuing payment orders for amounts owed, compliance orders, or administrative monetary penalties

Key messages

• The Canada Labour Code is clear: Employers must pay employees no less than the minimum wage for all hours of work
• Collective agreements can provide different benefits and rights, if they are equal to or more favourable than required by the Canada Labour Code
• I do not wish to comment on the hours of work and rates of wage included in a collective agreement. The role of the Government is to establish the minimum standards and let parties negotiate agreements
• The Government of Canada will continue to work closely with Parliamentarians, stakeholders, employers, and unions to strengthen Canada's federally regulated workplaces and is committed to fairer and safer working conditions for everyone across the country

Issue

• As of September 2024, the total backlog consisted of 3,402 complaints. The annual volume of complaints has increased to nearly 5,500 in 2023 to 2024, up from a historical average of 3,800
• The incoming volume of complaints continues to outpace the Labour Program's operational capacity of 105 inspectors who investigate complaints. With current workloads, it will take approximately 11 months to assign all unassigned complaints and start investigating the newest complaints

Background

• Part Ⅲ of the Canada Labour Code sets labour standards as conditions of employment and establishes various complaints mechanisms to protect workers' wages and rights in the federally regulated private sector
• Labour Standards compliance activities include, investigating monetary and unjust dismissal complaints, and conducting employer education and workplace inspections
• Since 2019, many legislative amendments to modernize labour standards and improve working conditions did not include funding for the Labour Program to enforce
  • there have been over 35 labour standards amendments, of which only 15 were funded
  • certain changes, notably those requiring paid benefits, increased complaint numbers and complexity. Introduced in late 2022, the amendments to paid medical leave resulted in over 500 monetary complaints in 2023
• Challenging economic environment as well as the changing nature of work with a rise in non-standard working arrangements have also contributed to the increased complaint complexity impacting service standards
• As of September 2024, there were 3,402 complaints in the total backlog. The annual volume of complaints has increased to nearly 5,500 in 2023 to 2024, outpacing the operational capacity of 105 inspectors
• Several strategies have been implemented to address the backlog and improve service standards, including:
  • streamlining new complaint intake, hiring temporary resources, and offering overtime
  • grouping employer complaints aim to simplify complaint investigation and improve coordination with employers
  • enhancing case monitoring via new operational reports and resource optimization measures, such as inspector onboarding and specialization
• Further strategies are planned to address the backlog such as a structural review to optimize roles and workflows, hiring new employees and establishing additional capacity for transformation initiatives

Key facts

• Presently, the Labour Program has 126 Labour Standards inspectors. This includes:
  • 9 temporary inspectors, ending in 2025, to implement paid medical leave, including addressing complaints
  • 21 temporary inspectors, ending in 2028, to exclusively address employee misclassification in the federally regulated road transportation industry
    • while this team is focused on educating and inspecting employers and enforcing requirements when misclassification is found, it is not addressing the backlog of complaints
• Of the 126 inspectors,105 investigate labour standards complaints
• With the current paper-based processes and capacity, should call and new complaint volumes remain or increase, the backlog of complaints is expected to grow further

Key messages

• Compliance with labour standards contributes to increased prosperity for workers and establishes a level playing field amongst employers within the federally regulated private sector
• Delays in addressing complaints is resulting in denial of worker rights and wages under the Canada Labour Code and increasing employer non-compliance with obligations under the Code
• The Labour Program has implemented several measures, such as overtime and streamlining case management to help reduce the backlog and improve service standards. We are also seeking resources for more inspectors and for broader modernization and service transformation to improve compliance and recovery of workers' wages

Background

Key facts

Key messages

Issue

How does the New Horizons for Seniors Program (NHSP) support Canadian seniors and their communities?

Background

The NHSP is a Grants and Contributions program created in 2004 to help ensure that seniors can benefit from, and contribute to, the quality of life in their communities. It achieves this goal through the following program objectives:

• promote volunteerism among seniors and other generations
• engage seniors in the community through mentoring of others
• expand awareness of elder abuse, including financial abuse
• support social participation and inclusion of seniors
• provide capital assistance for new and existing community projects and/or programs for seniors

The program has 2 funding streams: community-based and Pan-Canadian. The community-based stream funds projects of 1-year in duration through grants of up to $25,000 through an annual Call for Proposals. The most recent call for community-based projects closed in September 2024. The Pan-Canadian stream funds more complex multi-year projects through contributions, for a maximum funding amount of $5 million. The most recent call for the Pan-Canadian stream closed in November 2023.

The program directly supports the Minister of Labour and Seniors' mandate commitment to advance programming for seniors. The program has a broad array of eligible funding recipients and prioritizes projects that support vulnerable seniors including Indigenous Peoples, seniors with disabilities, members of racialized and newcomer groups, members of 2SLGBTQI+ communities, low-income seniors and veterans.

Key facts

The program funds both community-based and Pan-Canadian projects with an annual budget of $70 million:

• the community-based stream's annual budget is $50.04 million
• the pan-Canadian stream's annual budget is $13.1 million
• the administration of the program is $6.86 million

Since it began, in 2004, the community-based grants stream has funded about 40,000 local projects by and for seniors in hundreds of communities across Canada, with a total investment of more than $749 million.

For the community-based Call for Proposals held in fall 2023, over 5,900 applications were received, representing over $130 million. A total of 3,451 projects were funded in 411 communities for an investment of $71.3 million. There continues to be high demand for this stream, with the number of successful proposals continuously exceeding available funds.

Project proposals are targeted to vulnerable seniors populations. Of the community-based projects funded as part of the fall 2023 Call for Proposals, 91% of funded projects were intended for vulnerable population groups, with many of these projects serving multiple vulnerable population groups:

• 62% of the funded projects were intended for low-income seniors
• 45% for seniors with disabilities
• 43% for newcomer seniors
• 35% for seniors living in rural and remote areas
• 18% for Indigenous seniors
• 16% for 2SLGBTQI+ seniors
  • recognizing that these percentages are not mutually exclusive

Ongoing efforts to streamline and simplify the application process make it easier for organizations representing vulnerable groups to apply. The most recent client survey reported an 82% rate of satisfaction with the application process, the highest score received by the Department for all Grants and Contributions programs this year.

The Pan-Canadian contributions stream, created in 2007, has supported 149 collective impact projects to increase social inclusion of seniors, representing an investment of more than $102 million. These projects help in addressing serious challenges faced by seniors, such as service delivery to seniors in rural areas and ensuring services are culturally friendly in some of Canada's most ethnically diverse communities.

In August 2024, 20 organizations were selected to advance to the final stage of the application process under the 2023 Pan-Canadian Call for Concepts. Selected organizations are eligible to receive between $1 million and $5 million for projects lasting 4 to 5 years that create significant impact in communities by using collaborative and innovative approaches to increase social inclusion and benefit the lives of vulnerable seniors.

Key messages

The program supports the Government of Canada's overarching goal to enhance the quality of life and promote the full participation of seniors in all aspects of life.

Through both small-scale local projects and larger multi-year initiatives, the program creates opportunities for seniors to be socially engaged, connected and active members of their communities and help build the capacity of organizations to address complex issues encountered by seniors and increase their social inclusion.

The program makes a meaningful difference in the daily lives of hundreds of thousands of seniors every year and helps hundreds of communities benefit from the increased social participation, knowledge, skills and experience of diverse seniors.

Both the community-based and Pan-Canadian streams' recent funding calls received high numbers of applications. The selected community-based projects will be announced next spring, and an announcement of the new Pan-Canadian projects is expected this winter.

4.b.i. Old Age Security enhancements

4.b.ii. Old Age Security processing

Issue

Interest around basic income has increased since the beginning of the pandemic.

Background

• In December 2021, New Democratic Party (NDP) Member of Parliament (MP) Leah Gazan introduced Bill C-223, a Private Member's Bill that would direct the Minister of Finance to work with Ministerial colleagues, provincial governments, Indigenous representatives, and other stakeholders to develop a national framework for the implementation of a guaranteed livable basic income, which has a similar meaning to "basic income." On September 25, 2024, the House of Commons voted on C-223 and the motion was defeated (at Second Reading)
• In December 2021, Senator Kim Pate introduced Bill S-233, a Senate Public Bill, that uses the same language as Private Member's Bill C-223. The Bill has completed its second reading and is currently being considered by the Standing Senate Committee on National Finance. The Committee has met to review the Bill four times thus far (in October 2023, November 2023, February 2024 and October 2024). The Committee has not yet felt ready to report on its study of this bill and would like to hear from additional witnesses

Provincial initiatives

• A few provinces, and in particular Prince Edward Island (PEI), Newfoundland and Labrador (NL) and Quebec, have taken steps towards advancing basic income initiatives in recent years
• In 2022, PEI legislators reconfirmed their support for implementing a Basic Income program in a letter signed by all provincial party leaders
• In November 2023, PEI Minister Barb Ramsay reached out to Minister Jenna Sudds to establish a federal-PEI working group to examine the benefits and impacts of a basic income mechanism, leveraging the work of Coalition Canada. Minister Sudds responded to express the Government's willingness to explore the creation of a working group composed of department officials with the intention of exchanging federal-level administrative, survey and tax data and information in support of PEI's work to evaluate a basic income
• Following this exchange, Employment and Social Development Canada (ESDC) and Government of PEI officials held a meeting to discuss the sharing of federal-level data and information to support PEI in their work to evaluate a basic income program
• In 2020, NL passed a motion to establish an all-party committee to review basic income. The Committee was established in November 2021
• In 2022, NL announced the creation of a basic income program for youth, limited to youth involved with certain provincial programs. In 2023, NL announced a "Targeted Basic Income Program" for people aged 60 to 64, limited to those currently receiving certain provincial supports. Recipients would receive an increase in payments to match the basic federal seniors' benefits, which they would receive once they reach age 65
• In July 2024, the Committee sent Minister Sudds a letter requesting a meeting to explore a basic income in NL. An initial meeting between NL and ESDC officials to discuss questions, issues, and opportunities was held shortly after
• In Quebec, in January 2023, a new Basic Income Program came into effect for individuals already receiving benefits under the Social Solidarity Program and who have had severely limited capacity for employment (for example, serious mental or physical health problems that limit an adult's opportunities to work) for at least 66 months over the previous 72 months. Persons who are eligible are automatically switched from the Social Solidarity Program to the Basic Income Program
• Critics of basic income express concerns about the anticipated costs and disincentives to work, and many oppose payments without requirements to work or seek employment. There are also concerns that important needs-based programming might be cut back or eliminated to help contain costs if a basic income were introduced, potentially leaving some vulnerable individuals worse off. As well, some critics suggest that, rather than a basic income, governments should increase expenditures on social services such as Pharmacare, dental coverage, childcare, and housing

Key facts

• "Basic income" generally refers to programming that provides recipients with guaranteed incomes sufficient to meet basic needs, with few conditions and no requirements to have or seek employment
• In Canada, income support is an area of shared jurisdiction and provincial and territorial governments are responsible for key income support programs such as social assistance
• At the federal level, the Government of Canada already has programs with features of a partial basic income, such as the Canada Child Benefit for families with children, and the Old Age Security pension and the Guaranteed Income Supplement for seniors
• ESDC monitors basic income research and reports, as well as the outcomes of basic income pilots in Canada and internationally

Key messages

• It is important to recognize that provincial and territorial governments have an important role in decisions about the design and delivery of income support programs in Canada
• The Government of Canada has programs with features of a partial basic income, such as the Canada Child Benefit for families with children, and the Old Age Security pension and the Guaranteed Income Supplement for seniors
• The Government of Canada continues to monitor research around basic income. If a provincial or territorial government decides to proceed with a basic income pilot, the Government of Canada would be pleased to provide support by potentially sharing federal-level administrative, survey, and tax data, that could support program design and evaluation

Issue

What is the current portrait of seniors' poverty in Canada and what are the key measures taken by the Government of Canada to reduce seniors' poverty?

Background

• The Government has made significant investments and adopted measures to reduce poverty among seniors
• The Government restored the age of eligibility from 67 to 65 for both the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS), which helped 100,000 seniors aged 65 and 66 to avoid plunging into poverty
• To help seniors who are living in poverty or are most at risk of living in poverty, the Government enhanced the GIS in 2016 by increasing the amount received by up to $947 annually for the most vulnerable single seniors and helping improve the financial security of 900,000 seniors
• In July 2022, the Government increased the OAS pension by 10 percent for seniors 75 years and older, to provide more than $800 in new support to full pensioners over the first year, and increased benefits for more than 3 million seniors
• To ensure that COVID-19 emergency response benefits did not negatively impact GIS or Allowance payment amounts, the Government of Canada provided, as part of the December 2021 Economic and Fiscal Update, $742.4 million in one-time payments to GIS and Allowance recipients who received the Canada Emergency Response Benefit (CERB) or the Canada Recovery Benefit (CRB) in 2020. These payments were issued automatically in April 2022 without the need for an application. The Government also introduced amendments to the Old Age Security Act to exempt any amount of CERB, CRB, Canada Recovery Sickness Benefit, Canada Recovery Caregiving Benefit and Canada Worker Lockdown Benefit received in 2021 or later from the calculation of income for the GIS and Allowances in 2021

Key facts

• The latest data from the Canadian Income Survey shows that the poverty rate for seniors was 6.0% in 2022 as measured by Canada's Official Poverty Line (the Market Basket Measure). The poverty rate for seniors decreased from 7.1% in 2015 to 3.1% in 2020. The rate has since increased to 5.6% in 2021 and to 6.0% in 2022, reflecting the onset of higher costs of living since 2021. There were approximately 36,000 more seniors living in poverty in 2022 compared to 2015. Over this period, the poverty rate among seniors decreased, while the number of seniors living in poverty increased, because the overall senior population increased at a higher rate than the number of seniors living in poverty. The number of seniors living in poverty in 2022 was estimated at 430,000
• • in 2022, the poverty rate for senior women (6.3%) was higher than for senior men (5.6%)
  • single seniors continue to have higher poverty rates than those living in families. The poverty rate for single seniors was 13.8% in 2022, while the poverty rate for seniors living in families rose was 3.3%
  • the poverty rate for seniors 75 years and above was 5.6% in 2022 compared to 6.3% for seniors 65 years to 74 years
  • in 2022, seniors with a disability (7.1%) had a higher poverty rate than the overall senior population (6.0%)
  • in 2022, seniors from vulnerable groups such as Indigenous seniors living off reserve (10.7%), immigrant seniors (8.2%) and visible minority seniors (9.7%) had relatively higher poverty rates than the overall senior population (6.0%)
• According to the 2022 Canadian Income Survey, 8.0% of Canadian seniors experienced food insecurity in 2022 (measured as moderate or severe food insecurity) – up from 6.3% in 2021 and 5.7% in 2020
• According to Food Banks Canada, a national charitable organization representing the food bank community across Canada, there were over 2 million visits to food banks in March 2024, an all-time high. This was 6% higher than in March 2023 and a 90% increase compared to 2019. About 158,600 or 7.7% of food bank visits were by seniors in March 2024, up from about 74,000 or 6.8% in March 2019

Key messages

• We are committed to improving the quality of life for seniors now and for generations to come
• The Government has made significant investments to reduce poverty among seniors, including increasing the GIS for the lowest income single seniors, and increasing the OAS pension for seniors 75 and older. Retirement benefits are also indexed quarterly to help keep up with the rising cost of living
• And our poverty reduction efforts are working. The poverty rate among seniors decreased from 7.1% in 2015 to 6.0% in 2022
• The Government of Canada will continue to build an economy that helps every generation get ahead by investing in housing and lowering everyday costs. Historic investments are made for key initiatives, including to support seniors, such as the Canada's Housing Plan, the new National Pharmacare Plan and the Canadian Dental Care Plan (CDCP)

Issue

How does the Age Well at Home (AWAH) initiative help seniors stay at home longer?

Background

The initiative is a federal grants and contributions initiative that advances the Government commitment to assist organizations to provide practical supports to help seniors age in place. The initiative pilots new approaches and supports existing projects led by seniors-serving organizations through 2 funding streams:

• the In-Home Support Pilot Projects stream funds local projects that are testing the extent to which volunteers can be mobilized to provide in-home practical supports (such as, help with meal preparation, light housekeeping, yard work or transportation) to low-income and otherwise vulnerable seniors and helping seniors navigate and access eligible services provided by other local organizations
• the Scaling Up for Seniors stream funds regional or national projects that are expanding services that have already demonstrated results in helping seniors age at home

The Government of Canada has committed $90 million to the initiative, with funding ending in fiscal year 2025 to 2026.

Seniors-serving organizations had the opportunity to apply to 2 competitive funding processes, one for each stream, in June 2022.

The initiative will complement provinces and territories' efforts to help seniors by mobilizing seniors-serving organizations and volunteers. Provinces and territories spend most of their home and continuing care dollars on home health and personal care. As part of personal care, they are able to provide limited assistance with meal preparation and light housework. Very few involve volunteers in providing these services. A few jurisdictions provide a limited range of other practical supports such as running errands or yard work. Income-adjusted user fees often apply.

The Government of Canada has a long history of working in collaboration with the Government of Quebec on programming for seniors-serving organizations to help improve seniors' quality of life. In the context of the initiative, the Government of Canada is respecting the Government of Quebec's decision not to approve projects that fall under the provincial M-30 legislation.

Key facts

The concentration of COVID-19 cases and deaths in long-term care homes in many communities across the country has intensified Canadians' desire to age at home. A survey conducted in June 2020 found that about 70% of Canadian respondents aged 65 and older have changed their opinions about whether they would arrange for themselves or a loved one to enter long-term care. Almost 100% of those surveyed report wanting to support themselves to live safely and independently in their own home as long as possible. (Survey by National Institute on Aging and the Canadian Medical Association).

There was significant interest for the funding processes, with a combined 518 applications received, representing a total funding request of more than $329 million. There were 128 applications received under the Scaling Up for Seniors stream ($114.41 million) and 390 applications received under the In-Home Support Pilot Projects stream ($214.68 million).

There are 107 AWAH projects across Canada, for a total of $68.7 million in funding provided to organizations:

• of these, 24 are Scaling Up projects and 83 are In-Home Support Pilot Projects
• of these, there are 15 projects underway in Quebec, representing an investment of $7.36 million

The Government of Canada is currently funding projects in Quebec that are not subject to Quebec's M-30 legislation and are able to accept federal funding. It is anticipated that all funds allocated for projects in Quebec for this year and next year will be invested in these projects.

Key messages

Canadian seniors want to stay in their own homes and communities as long as possible but many do not have all the supports they need in order to live independently. This is why the Government of Canada is investing a total of $90 million for the initiative, until fiscal year 2025 to 2026.

The initiative provides funding to seniors-serving organizations for local, regional and national projects which will allow for the discovery of new approaches and harvesting lessons learned:

• projects funded under the In-Home Support Pilot Projects stream test the extent to which volunteers can be mobilized to provide local practical supports such as meals, housekeeping, and yard work to help low-income and otherwise vulnerable seniors age at home, and help seniors navigate and access eligible services provided by other local organizations
• projects funded under the Scaling Up for Seniors stream expand services that have already demonstrated positive results in helping seniors age at home

We are looking forward to sharing learnings from the AWAH projects as they unfold. 

We are looking forward to working with Quebec-based organizations who were successful in the AWAH funding calls and that are able to accept federal funds.

Issue

How are benefits indexed for inflation under the Old Age Security (OAS) program and the Canada Pension Plan (CPP)? Could individuals lose benefits under the OAS program because their benefits are indexed under the CPP?

Background

To ensure that they retain their value over time, OAS and CPP benefits are adjusted in accordance with changes in the Consumer Price Index (CPI). While OAS benefits are adjusted 4 times per year, in January, April, July and October, CPP benefits are adjusted annually each January.

The Guaranteed Income Supplement (GIS) is an income-tested benefit under the OAS program, that is targeted to low-income seniors with little income other than the base OAS pension.

An individual's GIS entitlement is re-calculated at the beginning of each July to June payment cycle, based on their net income from the previous year. For example, GIS benefits for the July 2024 to June 2025 payment period are based on a person's income from 2023.

Any income considered to be net income under the Income Tax Act is used to determine the amount of GIS. This includes any money that a pensioner receives from the CPP or Québec Pension Plan.

Generally, the GIS is reduced by $1 for every $2 of monthly net income until it is completely phased out.

Because the GIS is only partially reduced by income from other sources, low-income seniors with additional income are always better off than those with no income.

Impact of CPP indexation on GIS benefits

The annual indexation of CPP benefits and the quarterly indexation of the GIS impact GIS entitlement amounts at different times.

The impact of quarterly indexation of GIS benefit amounts is immediate. For example, in October 2024, following the quarterly indexation of all OAS benefits, the maximum monthly GIS benefit increased from $1,072.93 to $1,086.88.

On the other hand, the impact of annual CPP benefit indexation on GIS benefit amounts is delayed by 18 months. For example, the January 2023 indexation of CPP benefits started to impact GIS entitlements in July 2024, when they were reassessed based on 2023 income.

Key messages

The Old Age Security (OAS) program has been supporting Canada's seniors for over 70 years and will continue to be there for Canadians in the years to come.

OAS benefits are an important part of the retirement income of Canadians, particularly lower-income seniors.

The Guaranteed Income Supplement (GIS) is an income-tested benefit designed to target support to those most in need to help them address their immediate needs.

Seniors with no other income than the OAS pension receive the maximum GIS benefit. To ensure that seniors are always better off by earning additional income, the maximum benefit is reduced by $1 for every $2 of other income.

OAS benefits, including the GIS, and benefits under the Canada Pension Plan are regularly indexed to inflation to ensure that they keep their value over time.

While an individual's GIS entitlement is reduced to account for their CPP benefits, the partial reduction rate means that they are always better off than if they did not receive those benefits.

Since 2016, we have worked tirelessly to support seniors, from restoring the age of eligibility for OAS/GIS benefits to 65 years from 67 years, to increasing the maximum GIS benefit for single seniors by 10%, which provided up to almost $1,150 in additional benefits in 2023, to enhancing the GIS Earnings Exemption to help low-income seniors who work, and most recently, increasing the OAS pension by 10% for seniors aged 75 and over.

We will continue to support current and future generations of seniors to ensure all Canadians have the secure and dignified retirement they deserve.

Issue

Why does Employment and Social Development Canada (ESDC) require additional authorities in the Supplementary Estimates (B) for fiscal year ending March 31, 2025?

Key Facts

Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year.

ESDC is requesting a total of $155.8 million in additional authorities through the Supplementary Estimates (B)*.

• an increase of $45.5 million in Vote 1 Operating expenditure
• an increase of $35.1 million in Vote 5 Grants and Contributions
• an increase of $75.2 million in Statutory items

*The estimated statutory forecast of $70.1 million for the National School Food Program granted in the Budget Implementation Act 2024 is included for information purposes.

Response

ESDC is requesting adjustments for:

Note 1: The Funding to establish a National School Food Program also includes a Statutory component of $70.1 million granted in the Budget Implementation Act 2024 (see Table 3). The total included in the Supplementary Estimates (B) for the National School Food Program is $77.5 million.

*The estimated statutory forecast of $70.1 million for the National School Food Program granted in the Budget Implementation Act 2024 is included for information purposes

Background

Key Quotes

Nil