NDP bill would expand severance rules for smaller employers and require worker agreement in mass layoffs
For more than a century, manufacturing and resource jobs have formed the foundation of prosperity and economic security for Ontario’s working families. Due to changing economic conditions and the poor choices made by the province’s Liberal government under Premier Dalton McGuinty, that foundation is beginning to crumble.
Statistics Canada says Ontario has lost almost 220,000 manufacturing jobs — that’s almost one out of every five — since July 2004. Even more worrisome, the economy in the United States now appears to have entered a recession, which will inevitably result in reduced demand for Ontario’s manufacturing and resource-based exports.
The job losses I quote are not just numbers. They’re people with families, mortgages and car payments. They’re people who volunteer in their communities. They’re people who work hard and play by the rules so they can make a decent living to support themselves and their loved ones.
Unfortunately, losing a job isn’t the only hardship these workers face. A loophole in Ontario’s Employment Standards Act allows some companies to avoid paying severance, leaving some of these unemployed workers with nothing — even after decades of dedicated service.
Under the act, in cases where a company has fewer than 50 employees and a payroll of less than $2.5 million, the company has no legal obligation or responsibility to pay severance.
New Democrats believe that’s wrong and workers deserve better protection under the law.
Earlier this spring, we introduced a bill that would amend Ontario’s Employment Standards Act to expand employer obligations to provide laid-off workers with severance pay and make other changes to ensure these workers are treated fairly. It calls for a comprehensive set of workplace protection measures, including improved severance pay and increased advance notice, as well as measures requiring increased employee consultation before a plant closure can take place.
The bill provides for mandatory severance for workers at any employer that lays off 25 or more employees within any six-month period as opposed to the present law, which only applies to a layoff of 50 or more employees over the same period of time. It would also cover any employer with a payroll of at least $1-million a year as opposed to the current $2.5-million threshold.
Our bill also increases notification requirements in instances of mass termination — termination of 50 or more employees in any four-week period. Employees who are part of a mass termination would be given the following advance notice:
• 50 to 199 employees — increased from eight weeks to 16 weeks;
• 200 to 499 employees — increased from 12 weeks to 20 weeks;
• 500 or more employees — increased from 16 weeks to 24 weeks.
Additionally, our bill would make another important amendment by adding a section calling for a mandatory labour-management agreement in mass layoff situations. This section would prescribe procedures in cases of layoffs of more than 50 workers. In these cases, the advanced notice clock would only start ticking after closure agreements have been signed by both labour — including non-unionized employee groups — and management. Issues to be negotiated would include retraining packages, severance enhancements, termination pay, early retirement, plant saving restructuring options such as worker buyouts, and transfers to other employer-owned facilities.
While there would not need to be a signed agreement for the layoffs to eventually proceed, in those cases where no agreement has been reached, layoffs would not be permitted until one year from the day the Ministry of Labour was notified.
The provisions detailed in our bill are just a few solutions New Democrats believe are good for workers, good for business, good for communities and good for Ontario. They are positive, practical alternatives that would go a long way toward cushioning the blow workers suffer when they lose their livelihood.
With almost 220,000 manufacturing jobs lost across Ontario and more losses quite possibly on the way, we need to examine ways to improve existing laws to provide additional security for workers who deserve to be rewarded for their commitment and hard work, not penalized.
Howard Hampton is leader of Ontario’s New Democratic Party.
Statistics Canada says Ontario has lost almost 220,000 manufacturing jobs — that’s almost one out of every five — since July 2004. Even more worrisome, the economy in the United States now appears to have entered a recession, which will inevitably result in reduced demand for Ontario’s manufacturing and resource-based exports.
The job losses I quote are not just numbers. They’re people with families, mortgages and car payments. They’re people who volunteer in their communities. They’re people who work hard and play by the rules so they can make a decent living to support themselves and their loved ones.
Unfortunately, losing a job isn’t the only hardship these workers face. A loophole in Ontario’s Employment Standards Act allows some companies to avoid paying severance, leaving some of these unemployed workers with nothing — even after decades of dedicated service.
Under the act, in cases where a company has fewer than 50 employees and a payroll of less than $2.5 million, the company has no legal obligation or responsibility to pay severance.
New Democrats believe that’s wrong and workers deserve better protection under the law.
Earlier this spring, we introduced a bill that would amend Ontario’s Employment Standards Act to expand employer obligations to provide laid-off workers with severance pay and make other changes to ensure these workers are treated fairly. It calls for a comprehensive set of workplace protection measures, including improved severance pay and increased advance notice, as well as measures requiring increased employee consultation before a plant closure can take place.
The bill provides for mandatory severance for workers at any employer that lays off 25 or more employees within any six-month period as opposed to the present law, which only applies to a layoff of 50 or more employees over the same period of time. It would also cover any employer with a payroll of at least $1-million a year as opposed to the current $2.5-million threshold.
Our bill also increases notification requirements in instances of mass termination — termination of 50 or more employees in any four-week period. Employees who are part of a mass termination would be given the following advance notice:
• 50 to 199 employees — increased from eight weeks to 16 weeks;
• 200 to 499 employees — increased from 12 weeks to 20 weeks;
• 500 or more employees — increased from 16 weeks to 24 weeks.
Additionally, our bill would make another important amendment by adding a section calling for a mandatory labour-management agreement in mass layoff situations. This section would prescribe procedures in cases of layoffs of more than 50 workers. In these cases, the advanced notice clock would only start ticking after closure agreements have been signed by both labour — including non-unionized employee groups — and management. Issues to be negotiated would include retraining packages, severance enhancements, termination pay, early retirement, plant saving restructuring options such as worker buyouts, and transfers to other employer-owned facilities.
While there would not need to be a signed agreement for the layoffs to eventually proceed, in those cases where no agreement has been reached, layoffs would not be permitted until one year from the day the Ministry of Labour was notified.
The provisions detailed in our bill are just a few solutions New Democrats believe are good for workers, good for business, good for communities and good for Ontario. They are positive, practical alternatives that would go a long way toward cushioning the blow workers suffer when they lose their livelihood.
With almost 220,000 manufacturing jobs lost across Ontario and more losses quite possibly on the way, we need to examine ways to improve existing laws to provide additional security for workers who deserve to be rewarded for their commitment and hard work, not penalized.
Howard Hampton is leader of Ontario’s New Democratic Party.
