B.C. government has unions fuming (HR Rulebook)

Newfoundland and Labrador adds holiday, family responsibility leave and director liability.

Usually there’s little new law at this time of year, given that most legislative assemblies are between sessions. However, British Columbia has passed a group of bills that have unions crying foul. And Newfoundland and Labrador has also been active with employment-related changes. A number of provinces have also passed electronic transactions acts legalizing e-signatures.

British Columbia
The Liberal government continues to stir things up in B.C. since taking power last May. In an effort to balance the province’s books, it first announced that it would cut $1.9 billion in spending and one-third (11,700) of B.C.’s public-service jobs over the next three years.

It then passed Bill 27, imposing a contract on teachers and making it illegal for them to stay away from school. The province’s teachers demonstrated their disdain by taking a day off work and planning a series of protests.

Then came Bill 28, which takes the power to regulate class size away from teachers and gives it to administration.

Finally, breaking a campaign promise not to touch union contracts, the government passed Bill 29, that discards certain “sweetheart deals” which the Liberals say the former NDP government made with health unions.

Thousands of non-clinical health-care posts, such as those of cooks and laundry staff in hospitals, may now be contracted to the private sector. The government expects these moves to help reduce its $2 billion deficit.

If these three bills and the layoffs weren’t enough, B.C. has launched a major review of its employment standards practices.

Changes are under consideration with respect to hours of work and overtime, variable compensation systems, and statutory holiday pay.

The public was invited to comment on the proposed changes until December. The government is now reviewing the commentary and may introduce new legislation as early as this spring.

Alberta
The Electronic Transactions Act, 2001, has been passed and is expected to come into force this spring. Electronic signatures and records will be given the same legal status as those on paper, assuming that all parties have agreed to conduct the business electronically.

New Brunswick
New Brunswick has made changes to its Occupational Health and Safety Act and Workers’ Compensation Act regarding contracting employees.

Under Bill 2 (once it is proclaimed in force), contracting employers (those who, through a contract, agreement or ownership, direct the activities of one or more employers) are responsible for the occupational health and safety of the employees of a sub-contractor.

Bill 3, which came into force on Jan. 1, imposes three new requirements:

•employers must notify the Workers’ Compensation Commission within 15 days of the commencement, re-commencement, cessation or suspension of business operations;

•these employers are also required to provide the WCC with a statement of the total wages earned by employees for that portion of the year; and,

•employers who lend or hire out the services of an employee to another employer are still deemed to be the employee’s employer, even while the person is working for the other employer.

Manitoba
Manitoba’s minimum wage will increase from $6.25/hour to $6.50/hour as of April 1. There will be a further increase a year later to $6.75/hour.

Newfoundland and Labrador
It’s official — Newfoundland has changed its name to Newfoundland and Labrador. New name aside, change has also come in the form of a number of labour-related initiatives.

Newfoundland and Labrador’s minimum wage will increase from $5.50/hour to $5.90/hour as of May 1. There will be an additional 10-cent increase on Nov. 1, bringing the minimum wage up to $6/hour.

The Electronic Commerce Act is now in force. It deals with digital signatures, copies, forms, collection of information and the storage and retention of electronic data.

The Same Sex Amendment Act was passed in December. It gives same-sex cohabiting partners the same rights and responsibilities as opposite-sex cohabiting partners. These rights include pension benefits.

The Labour Standards Amendment Act introduces the following changes to the province’s employment standards legislation, effective July 1:

•Remembrance Day becomes Newfoundland and Labrador’s sixth paid public holiday;

•minimum overtime is 1.5 times an employee’s regular hourly wage, rather than 1.5 times minimum wage (this provision takes effect April 1, 2003);

•employees will now have up to seven days of protected family responsibility leave per year;

•bereavement leave provisions apply on the death of a daughter-in-law or son-in-law;

•on insolvency, the length of notice of termination depends on the number of years of employment;

•employee wage protection among unsecured creditors rises from $2,000 to a maximum of $7,500 on insolvency; and

•company directors may be held personally liable for a maximum of two months’ wages per employee unless due diligence is demonstrated.

Ontario
Ontario’s Occupational Health and Safety Amendment Act now requires inspectors to obtain a warrant before investigating workplaces for alleged breaches.

There are new requirements for the certification of Joint Health and Safety Committee members (see www.wsib.on.ca/wsib/wsibsite.nsf/public/CertificationTraining) appointed under the Occupational Health and Safety Act.

Prince Edward Island
As of April 1, the Workers’ Compensation Amendment Act will index benefits to inflation. An appeal tribunal will also be appointed so that claimants may challenge decisions without having to go to court.

Quebec
An Act to establish a Legal Framework for Information Technology went into effect Nov. 1. It gives electronic documents the same authority as paper ones and promotes the use of electronic documents by encouraging the development of communication standards.

Nunavut, Northwest Territories
A review of Nunavut and the Northwest Territories joint workers’ compensation system has been handed to the territorial governments. Feedback and comments are invited. The 132-page document can be accessed in PDF format at www.gov.nu.ca/wcbenglish.pfd.

Federal
The United Nations Suppression of Terrorism Regulations came into effect on Oct. 2. The regulations require pension plan sponsors to determine whether any members, former members or beneficiaries appear on the list of known terrorists and terrorist organizations identified by the United Nations.

If there is a match, plan sponsors must report it to federal authorities and freeze the transfer of assets to the person or organization. Banks and insurance companies must perform more rigorous security checks and file monthly reports with the Office of the Superintendent of Financial Institutions. Failure to comply with the regulations may result in summary conviction, with a maximum penalty of $200 and/or imprisonment for up to three months. A conviction on an indictable offence carries a maximum fine of $5,000 and/or imprisonment for up to five years.

Two changes are pending to the Pension Benefits Standards Act. One concerns the minimum funding requirements for federally regulated private pension plans. If passed, this amendment would come into effect on Jan. 1, 2003.

The other proposed change is to the regulations. It would require annual pension statements to set out a member’s information rights to access documents establishing the plan, as well as financial and actuarial information, investment policies and procedures, and information regarding the solvency ratio of the pension plan, where the ratio is less than one.

Marcia McDougall is a consultant with Hewitt Associates and the editor of The Canadian Employer, a monthly newsletter published by Carswell. She may be contacted at (416) 225-5001. She is grateful to Hewitt’s research consultants for their assistance in the preparation of this column.

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