Sunday, September 20, 2015

'Wild West' scheduling holds millions of Ontario workers hostage

News stories like these are not so obvious to a majority of people in Canada & pretty much none abroad. The public thinks that since I am doing great in a permanent, full time position, everyone else must be in the same boat. We don't realize how the proverbial graph of labour conditions in US & Canada has consistently being going down for the past decade.

Employment is rising fast in retail industry in Canada. Search jobs in any one of the hundreds of job search websites & apps & you will definitely come across some retail sector jobs, regardless of what position you are searching for. However, most retailers are operating in a cut-throat market, & hence, try to be efficient by cutting down on their labour costs.

That happens despite some of the owners of the retail sectors becoming filthy rich & continuously becoming rich, for example, Walton family of Wal-Mart, Sobey family of Sobeys, Weston family of Loblaws etc.

These retailers try to find any loophole which can benefit them. For example, the article mentions that retailers hire new part-time staff, when the sales in store increases, instead of offering those extra hours to their existing staff. It doesn't provide any reason, but the reason retailers do that is because if existing part-timers are offered those extra hours & their hours get past the minimum threshold at which retailers are obliged to give those part-timers medical & dental benefits, then it will cost those retailers even more. So, retailers hire new staff, & this way keeping the hours of all part-timers below the minimum threshold of benefits.

People, who don't know what retailers do, very easily say that take a job at a store. They don't realize how hard life would become once you get in that cycle. As the article mentions, you won't even have the time to take a second job to cover your expenses, since erratic scheduling will demand your full schedule to be opened. You might be required to work at the store at any time.

But then, can we blame the retailers for this?

After all, as I said above, they are operating in a cut-throat environment & they need to cut costs wherever they can. Labour costs are a big chunk of total operating expenses. A majority of consumers demand lowest prices possible. They can easily do comparison shopping through websites, flyers, apps etc. & look for the cheapest price possible for the same product. There is no such thing as customer loyalty.

Most consumers, of course, are looking for lowest prices because they themselves are living on meagre wages. They don't have extra cash lying around to splurge on even organic & healthy food (which is generally more expensive than regular, non-organic food), forget then that they will spend extra on general products.

To keep prices so low, for example, like Wal-Mart, stores need to cut costs as much as they can. Of course, that means using technology as much as they can, for example, use of self-checking kiosks. Technology, though, take away jobs even from those part-timers. So technology makes more people unemployed.

Root of the problem lies at the mentality of owners that accumulation of wealth at the top is good. Owners think it is their entitled birth-right to accumulate as much wealth as they can. Rich elites, in general, are looking forward to keep hoarding money in their bank accounts. They cut costs brutally in their businesses; whatever industry they are in. Their workers are paid meagre wages. Those workers then spend their salaries very carefully. The rich owners also try to avoid, as much as they legally can, to pay for benefits; vacations, health, pensions etc. Workers then are required to buy those benefits & save for their pensions themselves ... from their already meagre wages.

Government, on the other hand, keep cutting social services & health benefits. I remember a decade ago that eye tests in Ontario were free for all every 2 years. Now, they are free only for diabetics, children & seniors. Adults have to pay for their eyes to be checked. Governments are cutting social services & health benefits because they don't have enough money in their public coffers (at least that's what the government says). They don't have enough money because rich business & political elites find ingenious ways to dodge taxes.

So, the rich business elites try to save big in their business operations through cutting wages, hiring more part-timers, cutting benefits etc. & then also save money by not paying their fair share of the taxes, which will, at least, help provide social services for those same poor workers whose wages & benefits they are cutting. So, the rich business elites have both their hands & the head in the money pot.

And we thought that this would be done by some unscrupulous, corrupt, unethical businessmen in the developing world !!!
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In Ontario, employers don’t have to provide workers with their schedule in advance.


There are no penalties for cancelling an employee’s shift even an hour before it’s due to start.

There is no obligation to guarantee part-time workers a certain number of hours.

There is no law preventing more part-time workers from being hired before offering existing employees more hours.

There is nothing that saves part-time workers from being paid less than full-time workers — even when they do the same job.

Many low-wage workers desperately need to take on second jobs but can’t, because employers expect full-time availability from their part-time employees.

Experts call erratic work scheduling the “Wild West” of employment standards, a practice that causes havoc in the lives of millions of Ontario workers but is almost completely ignored by provincial law.

The result in many industries is a “brutal combination” of unpredictable schedules, insufficient hours & poor wages, says Deena Ladd, who heads the Workers’ Action Centre, a Toronto-based labour rights advocacy group.

Now, Ontario’s so-called “precariously employed” are demanding change on these issues, as Premier Kathleen Wynne’s government embarks on a review of employment & labour laws that is expected to conclude in August 2016.

It’s just incomprehensible that we’re asking people in our province today to try to manage their lives under these kinds of conditions,” says Kendra Coulter, a professor of labour studies at Brock University.

So-called flexible schedules are often welcomed by employees who want greater control over their work-life balance. But for the growing number of people in low-wage part-time positions, “flexibility” provides little in the way of control or balance.

41% of work in Ontario is now done outside a full-time, permanent relationship with a single employer.
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Expecting full-time availability from part-time employees, the action centre’s Ladd says, makes it difficult for many low-wage workers to take on much-needed second jobs.
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Ontario’s Employment Standards Act, last reviewed in 2000, is almost completely silent on the subject of scheduling, containing just one provision to protect workers.

The “three hour rule” forces bosses to give their employees 3 hours of pay if they arrive at work only to have their shifts abruptly shortened or cancelled. The rule does not apply to workers who are regularly scheduled to work less than 3 hours, which labour activists say is increasingly common.

Beyond that, employers have no responsibility to provide workers with a predictable schedule.
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Erratic scheduling is most common in booming sectors such as retail, where jobs tend to be low-wage & non-unionized.

In Toronto alone, the number of people employed in retail has grown by 34% over the past 15 years, to more than 300,000 in 2014 from just under 227,000 in 1999.

Angelo DiCaro, Unifor’s lead researcher on the retail sector ..., says negotiating scheduling rights for union members is tough since there are no province-wide standards.

Flexible scheduling is popular with employers because it allows companies to spend less on payroll when sales slow down. Managers are often evaluated based on their success.

It’s a pure efficiency argument from the retailers’ viewpoint,” explains Joseph Milner, a professor at Rotman School of Management. “The more flexible you can get your resources — your human resources, in this case — the more you would expect to get efficiencies.”

In addition to keeping wages low, hiring a large pool of part-time employees who work limited hours minimizes employers’ obligation to pay benefits such as medical & dental. Even in unionized settings, workers must often work a certain number of hours to be eligible for such entitlements.

Mary Gellatly of Parkdale Community Legal Services argues this “shifts what’s traditionally been the cost of doing business onto workers, especially low-wage precarious workers who can least afford it.”

The reality is that at this point (scheduling) is a ‘Wild West’ when it comes to employment standards,” adds Brock University’s Coulter, who calls the reforms proposed by the Workers’ Action Centre “thoughtful, comprehensive & achievable.”

She also points out that not all employers take advantage of loose rules.

Costco Canada, for example, guarantees its full-time staff 40 hours a week, & its part-timers 25 hours. Schedules are posted at least 1 week in advance, & both full-time & part-time employees are entitled to health benefits.

The upshot, says Ross Hunt, the company’s vice-president of human resources, is one of the lowest employee turnover rates in the industry — 12%, compared with the retail average of about 21%.

It gives (workers) a better quality of life. And if they’re stable & they stay with us, it’s great for us, too,” he told the Star in an interview.

But the political push for province-wide standards has so far lagged. In the US, the proposed federal Schedules that Work Act sets out much stronger protections, including mandatory two-week scheduling notice for many low-wage sectors.

The Act will face tough passage through the Republican-controlled House of Representatives, but that hasn’t stopped San Francisco from enacting game-changing municipal legislation with similar provisions, including providing retail workers with two weeks’ notice of their schedules.

I think we’re way behind many jurisdictions in the US where they’re trying to put a halt to the unfettered growth of just-in-time scheduling,” says Parkdale’s Gellatly.

But campaigners say the Ontario government’s current review of the Employment Standards Act is a golden opportunity to fix what the action centre’s Ladd calls a “massive, gaping hole” in the province’s laws.


Proposed solutions

A recent report by the Workers’ Action Centre on precarious work in Ontario recommends reforming the Employment Standards Act to:

• Require two weeks’ advance posting of work schedules

• Give employees the right to one hour’s pay if their schedule is changed with less than a week’s notice, & 4 hours’ pay if less than 24 hours’ notice

• Mandate minimum three-hour shifts for all workers

• Require employers to give existing part-time & casual employees preference for available hours before hiring additional workers

• Give workers protection from reprisal when requesting schedule changes

• Mandate equal pay for equal work, regardless of part-time or full-time status


BY THE NUMBERS

40%: Pay difference per hour between part-time & full-time workers in Ontario

$11: Median wage for a Toronto grocery store worker in 2014

60%: Grocery store workers in Toronto who are not unionized

88%: Retail workers in Toronto who are not unionized

87%: Retail workers in Ontario who are not unionized

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