The Pearson Centre for Progressive Policy

Progressive Dialogue and Policy for a Better Canada

BILL MORNEAU ON FUTURE OF WORK

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November 3, 2015

BILL MORNEAU ON FUTURE OF WORK

By Igor Delov, Ontario Building Trades

Summary – “The Future of Work” Seminar hosted by
The Pearson Centre for Progressive Policy

Notes by Igor Delov, Executive Assistant – Provincial Building & Construction Trades Council of Ontario

Event Participants:
Andrew Cardozo (Co-Chair), President – Pearson Centre
Patrick Dillon (Co-Chair), Business Manager – Provincial Building & Construction Trades Council of Ontario
Adam Vaughan, Member of Parliament – Trinity-Spadina
Bill Morneau, Executive Chair – Morneau Shepell
Trish Hennessy, Director – Canadian Centre for Policy Alternatives
Katrina Miller, Partner – Public Interest Strategy and Communications
Dr. Maria Wallis, Adjunct Faculty – York University and Ryerson University
Alexander Cohen, Student – University of Toronto
David Suess, Director – Manufacturing Skills Centre; Canadian Manufacturers & Exporters

Adam Vaughan
-poverty in major Canadian cities has been driven outside of the downtown cores resulting in multi-layered geographic constellations in which high income earners attract low-income workers to serve their particular neighbourhood needs (mostly in the food and service sector)
-sweeping public policy reforms like a minimum wage increase in the end make it more expensive to be poor in the sense that rents and other costs go up soon after such increases are implemented
-it is not enough to pump more money into the economy. A comprehensive vision and better planning are needed to tackle congestion which emanates from economic dislocation and income inequality, not just the sheer volume of people
-the federal government has the fiscal capacity to envisage and implement a national housing strategy but has not done so
-daycare is another area requiring federal attention and leadership. Mixed with mentoring the parents, daycare can have huge benefits to communities
-employment standards at the Canadian Broadcasting Corporation (CBC), a once-revered organization for its emphasis on progressive values, have been reduced significantly, with the growth of temporary contract work absolving the CBC of any responsibilities towards workers (in terms of pensions, benefits, training, etc.). In some cases, workers were hired on two-week contract intervals for months or years on-end
-there is evidence of incremental calls for more accountable and participatory decision-making in government which is more likely to improve the quality of public policy outcomes

Bill Morneau
-the ‘knowledge’ worker is at the centre of the ‘new economy’
-‘knowledge’ workers are those who are formally educated and through their high incomes, drive demand for services that are provided by other workers. ‘Knowledge’ workers also get burned-out more quickly
-globalization and technological change have given rise to this fragmentation in the labour market; high income workers are co-existing with the working poor who live in abject poverty
-technological changes and automation have reduced the relevance and prevalence of menial jobs, most of which have been outsourced overseas thanks to liberalized trade regimes
-because there is no choice but to compete with other jurisdictions as a result of free trade and globalization, organizations are forced to become leaner and leaner, resulting in ever-more outsourcing and an explosion in contract work
-labour relations have been impacted by these changes as well. Workers exist in a climate of intimidation and zero-sum competition with each other
-there is more training at the top, and less at the bottom as the working poor are governed by the ease with which they can be replaced
-businesses have cleansed their balance sheets of entitlements which have been redefined as ‘burdensome’
-if we turn the clock back and put in the wrong rules, we will no longer be competitive and the jobs that we’re trying to enhance will simply disappear
-targeted government intervention is needed
-employers must step up and train, and show leadership on pension coverage for their employees
-Employment Insurance is the biggest fund that provides training (and re-training) in the country, which is a sad commentary on the current state of affairs
-Canada needs to meet job targets for post-secondary graduates

Trish Hennessy
-both the language and expectations of what is economically reasonable and just have evolved
-a transformation has occurred leading people to go from down-sizing to “right-sizing”
-the promise of yesterday was to have a good education, followed by up to five steady careers and a secure retirement – today’s millennials have absorbed that message
-in reality however, the overwhelming majority of jobs do not follow this trajectory
-the economy tends to overvalue formal learning and devalue on-the-job training
-since 1997, the number of low-wage workers has grown to 94%
-people simply don’t know anymore, what their work schedule is, from week to week or even from day to day
-the new economy is essentially based on a permanent state of servitude
-the grass roots minimum wage movement in the United States is something that should be closely observed
-Daco credit union embraced the Living Wage in Toronto
-the Windsor Chamber of Commerce has also embraced the Living Wage; such initiatives are growing in prominence across North America
-governments can and should serve as models in setting the benchmarks
-50 years ago, the federal election produced a government on a campaign slogan of “good things happen when government cares about people.” Such a slogan is unlikely to be replicated in today’s political discourse
-the Canada Pension Plan, and the federal commitment to provide long-term health care funding for Canadians were things that strengthened the fabric of the country
-a national affordable housing strategy and a national child care program are sorely needed

Katrina Miller
-the October 2014 ‘Good Jobs Summit’ convened in Toronto to promote the value of fair compensation and the boost that well-paid jobs have on the economy
-the summit produced a consensus with respect to the need to update legislation and regulations to better reflect realities on the ground, as well as ensuring greater equity and inclusion so that more people have opportunities to succeed
-there is also a desire to ensure that such commitments are directly beneficial to the business community
-Community Benefits Agreements are one mechanism to ensure greater opportunities for people
-unions themselves must stop in-fighting in order to contribute towards the goal of bringing expanded opportunities
-public institutions should become leaders in building the new workforce and supporting business needs in matching what workplaces require
-universities, colleges, credentialing bodies, trades training centres, and unions all have a critical role to play within the post-secondary space
-employment retention is very important to meaningful work and prospects for a lasting career

Dr. Maria Wallis
-Canada is in deep denial about the extent of poverty feminization and racialization
-a joint study by McMaster University and the United Way found that white men are 27% more likely to be in permanent, full-time employment compared to other demographic groups
-the same study found that white women are 18% more likely to me be in permanent, full-time employment compared to other demographic groups
-one way to get people’s attention to what’s going on is to be provocative, so the term ‘Economic Apartheid’ has been coined to describe economic realities in Canada
-investments that are made in the workforce pay off down the road, in the form of increased productivity
-inclusion can actually impact work performance
-society proclaims and pretends to be fully inclusive, but the statistics show a very different reality of marginalization, racialization, and gender-based inequality

Alexander Cohen
-the youth unemployment rate has not recovered to pre-recession levels; it is currently at 13.8% and is almost always higher than the general unemployment rate
-older workers are staying in their jobs longer, depriving the next cohort of workers from new opportunities
-young workers are always ‘canaries in the coalmine’ when it comes to detecting looming job loss crises
-unpaid internships are also a huge problem that young people face, as they seek experience that will prepare them for what they ultimately aspire to: meaningful employment
-63% of paid interns end up receiving a job offer after their internship ends
-Norway and Sweden have free education from kindergarten all the way through to the PhD level
-early childhood education is just as important as higher learning, and there should be state supports for both
-there are various government programs like the Aboriginal Work Program and the Youth Entrepreneurship Fund which incentivize these groups, but such programs are not enough
-the federal government needs to show leadership on a number of files in order to jump-start the Canadian economy

David Suess
-sometimes, disruptive innovation is needed to move things forward
-entire industries have disappeared in Canada, dislocating many workers and communities
-readjusting to a new economic climate is not easy and requires training
-precarious work is usually the alternative for many people
-a lot of workers are in vulnerable positions, fighting for the same dollar
-federally, Sector Councils have largely been disbanded leaving behind an even greater gap in understanding what labour market conditions require in various sectors of the economy
-Canada is lagging instead of leading, in that regard
-there are 13 ways of doing apprenticeships in Canada and harmonization is needed, but it has to reflect realities on the ground
-an Ontario auto worker with a Red Seal certificate cannot work alone in an Alberta oil field without prior training and mentorship to adjust to and master the new work environment
-we need a national pool of workers with transferable skills that employers can use to deliver their product or service in a quick, competitive way. This requires a better training architecture in the economy so employers and workers need to figure it out together

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