News in Brief

Employers call on Ontario government to answer ORPP questions

TORONTO — A coalition of Ontario employers is calling on the Ontario government to address questions about its proposed Ontario Retirement Pension Plan (ORPP). The group of more than 150 organizations, along with the Ontario Chamber of Commerce (OCC), laid out five questions in a letter to Premier Kathleen Wynne.

“Ontario’s employer community is asking for greater clarity about the proposed pension plan so that it does not have a direct, negative impact on jobs and the economy.” Allan O’Dette, OCC president and CEO said. “The Chamber Network and the broader employer community continue to advocate for a solution that sustains a business climate that fosters growth and job creation.”

Wynne first proposed the ORPP last year, saying it was necessary to help provincial residents save more for retirement since the federal government has so far refused to enhance the Canada Pension Plan (CPP). The ORPP would be structured much like the CPP, with mandatory contributions from employers and employees. The plan would operate in addition to the CPP, meaning that employers and employees required to contribute to the ORPP would have to pay into both plans. The government plans to phase-in ORPP contributions between 2017 and 2021.

Participation would be mandatory for employees and their employers if the individuals are employed in eligible employment in Ontario, are 18 to 70 years old and do not take part in a comparable workplace pension plan. Comparable plans will include registered pension plans that are subject to federal and provincial regulation and meet certain minimum thresholds, including providing a predictable stream of income in retirement for life, requiring contributions from employers, and replacing up to 15 per cent of an individual’s pre-retirement income.

The primary concern of the employer community remains with the ORPP’s potential economic impact, the coalition says. It wants the provincial government to answer the following questions:

• How will the ORPP impact Ontario’s gross domestic product, jobs, and investment?

• What assumptions has the government made to arrive at its revised definition of comparability?

• How will the government ensure that the ORPP is cost-effective?

• How will Pooled Registered Pension Plans be implemented while preserving their advantages for employers?

• How many current workplace pension plans are now considered comparable and how will employers verify the comparability of their plan?

“Government is moving ahead with a brisk timeline and some employers will begin making ORPP contributions in less than 18 months. With the potential implementation quickly approaching, Ontario’s business community is looking for more specific answers to some very legitimate questions,” said O’Dette. “It is our hope that these questions will give government an opportunity to provide further clarity to Ontario’s business community,” he added.


Unemployment rate rose to 7.1 per cent in September: StatsCan

OTTAWA — Canada’s economy gained about 12,000 jobs in September, but the unemployment rate rose from seven per cent to 7.1 per cent, Statistics Canada reports.

It attributes the rate increase to more people searching for work.

Part-time employment went up by 74,000, but full-time jobs declined by 62,000 in September. Employment was up for people aged 55 and older, but was little changed for other age groups.

Industries where employment increased included information, culture and recreation, health care and social assistance, and business, building and other support services.

Employment was down in industries such as educational services and transportation and warehousing.

On a provincial basis, Newfoundland and Labrador continued to have the highest unemployment rate at 13.6 per cent, up from 11.5 per cent in the previous month.

The unemployment rate also went up in Alberta (from six per cent to 6.5 per cent), British Columbia (from six per cent to 6.3 per cent), Nova Scotia (from 8.4 per cent to 8.9 per cent), Ontario (from 6.8 per cent to 6.9 per cent) and Saskatchewan (from 4.7 per cent to 5.1 per cent).

The unemployment rate went down in Manitoba (from 5.7 per cent to 5.2 per cent), New Brunswick (from 10.1 per cent to 8.8 per cent), Prince Edward Island (from 10.8 per cent to 9.3 per cent) and Quebec (from eight per cent to 7.7 per cent).

In the United States, the U.S. Bureau of Labor Statistics reports that the American economy added 142,000 jobs in September and the unemployment rate remained at 5.1 per cent.


Canadians not using all of their vacation time: Survey

TORONTO — Canadians will receive an average of 17 vacation days this year, but will take only 15.5 of them, says a survey by online travel provider Expedia.ca.

The company’s annual survey, called the Vacation Deprivation Survey, says collectively Canadians have close to 10 million unused vacation days for this year alone.

Since the survey began in 2003, Canadians have amassed more than 350 million unused vacation days, resulting in $53 billion in wages handed back to employers, the company says.

For nearly one-third of Canadians (32 per cent), work schedules topped the list of reasons for not taking vacation time, followed closely by saving for other obligations such as a house, tuition or paying off debt (29 per cent), and personal and family schedules ranked third at 24 per cent.

The survey also revealed that more than one million Canadians have not taken a vacation in over 15 years and more than 1.4 million Canadians have never been on a vacation in their lifetime.

Labour standards laws in all Canadian jurisdictions require that employees receive a minimum amount of vacation time and vacation pay per year. In some jurisdictions, under certain circumstances, employees are allowed to waive their entitlement to the minimum amount of vacation time, but employers must still pay them their vacation pay.


Average weekly earnings up slightly in July: StatsCan

OTTAWA — Average weekly earnings of non-farm payroll employees were $957 in July, up slightly from $954 in June, Statistics Canada reports.

Statistics Canada revised the June numbers from the previously reported $955.

On a year-over-year basis, weekly earnings increased 1.6 per cent in July. The increase in weekly earnings during the 12 months to July reflected a number of factors, including wage growth, changes in the composition of employment by industry, occupation and level of job experience, as well as average hours worked per week.

Non-farm payroll employees worked an average of 33 hours a week in July, unchanged from June and from the average one year earlier, said Statistics Canada.

Year-over-year earnings of non-farm payroll employees increased in all provinces but Alberta in July. The biggest growth was in Manitoba, Prince Edward Island and Ontario. Earnings declined in Alberta.