Archived - Discussion Paper on the Review of Labour Standards in the Canada Labour Code

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I. Responding to the Evolving Workplace

I. Coverage under Part III

5. Benefits Bank

Commission Recommendations:
  • The federal government ought to investigate a range of possibilities for providing benefits coverage to temporary workers, agency workers, self-employed persons and others presently without coverage. It ought specifically to consider establishing a “benefits bank” through which employment-related benefits coverage could be purchased by workers themselves or by their employers, as well as by other persons seeking coverage. This “bank” might be established by private insurance companies or organized by a public agency.
  • If coverage can be provided in a practical fashion, the Labour Program ought to revisit the issue of whether non-standard workers must be provided with benefits on the same basis as other workers employed by the same firm. (R. 10.7)

The Federal Jurisdiction Workplace Survey 2004 indicated that many employers do not provide benefits, such as dental, drug and disability insurance or pensions, to employees who work under non-standard contractual arrangements, such as temporary, part-time, agency and autonomous workers. Other studies also show that non-standard workers are less likely to enjoy these benefits. As well, employees in small and medium sized enterprises (SMEs) tend to have fewer benefits than those in larger enterprises.

The Commission noted that providing coverage for non-standard employees or employees in SMEs may be more complicated and expensive than for regular full-time workers in larger enterprises. This is because of the actuarial problem of spreading risks across a small group, the cost of administering small-scale plans and the difficulties involved in pro-rating benefits. It may also be difficult to collect premiums from and provide benefits to a more transient population, such as temporary or agency workers.

The Commission recommended that the government investigate different models for providing non-covered workers with benefits. For instance, it suggested that the Employment Insurance model be investigated, wherein contributions are paid into a fund and benefits are provided on the basis of aggregate contributions or total hours worked. It also suggested that the government examine using tax-sheltered, employee-funded plans (much like RRSP plans), affinity plans, and facility insurance.

For discussion:
  • Should the government play a role in ensuring that non-standard workers and/or workers in SMEs have access to fringe benefits, such as drug benefits or pensions? What about independent contractors, entrepreneurs or other individuals in the workforce who may lack benefits?
  • Would a “benefits bank” be the best model to provide benefits to workers without coverage? If so, how should it be funded and governed? On what basis should benefits be provided? What types of benefits (pensions, prescription drug benefits, disability benefits, dental benefits, etc.) should be available?
  • Are there other schemes that might be effective in providing benefits to workers who lack coverage?

6. Employment of Children

Commission Recommendations:
  • The Minister’s regulation-making power should be amended to enable the Minister to adopt regulations dealing with the employment of persons under the age of 16, or between the ages of 16 and 18.
  • Part III should ban dangerous work for workers under the age of 18. (R. 10.8-10.9)

Labour standards legislation in many provinces regulates the daily and/or weekly maximum hours that can be worked by young persons when they are not at school. Part III does not currently deal with this topic.

Very few youth are employed in federal jurisdiction enterprises, and no one suggested as part of the Commission’s review that child labour was an issue. However, it has been argued that the Minister should be empowered to make regulations concerning child labour, in order to allow Canada to meet its international obligations in this regard.

The Commission also recommended that the current ban on dangerous work for children under 17 be extended to all children under 18, in accordance with ILO Convention 182 (the Worst Forms of Child Labour Convention, 1999). Canada is a signatory to this Convention. Under the Canada Labour Standards Regulations, dangerous work includes underground mining, night work and any work which is likely to be injurious to the child’s health or safety.

For discussion:
  • Are there any issues with respect to this particular recommendation?
  • Should the list of dangerous work for minors be expanded or amended in any way?

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Date Modified:
2012-02-15