Changes Will Hurt Job Creation, Consumer Costs and Economic Growth
The Keep Ontario Working coalition, in partnership with the Ontario Chamber of Commerce and Ontario Chamber Network, expressed concern that the Government of Ontario’s Fair Workplaces and Better Jobs Plan, commits to unproven sweeping reforms without ensuring protection against unintended consequences, including job losses, rising consumer costs and economic hardship.
The Keep Ontario Working Coalition (KOW) is a broad-spectrum group of business sector representatives concerned with sound public policy to help produce jobs and grow Ontario.
As noted in the Business Prosperity Index of the Ontario Chamber of Commerce’s 2017 Ontario Economic Report, despite projections that Ontario will lead Canada in economic growth in the coming years, diminished profitability, lower labour market participation, and sluggish market activity; along with other key factors have resulted in a risk-averse atmosphere that businesses are disinclined to grow production. Businesses are questioning if they should grow in Ontario or expand offshore.
Despite that, Ontario’s private sector is still doing its part to support workers. As the Government pointed out in Budget 2017, 98 per cent of all new jobs since the recession in Ontario have been full time, and 78 per cent in above-average wage industries. This positive economic activity by Ontario’s private sector demonstrates a clear commitment to good jobs throughout our province.
OCC AND KEEP ONTARIO WORKING STATEMENT
The following is a statement by the Keep Ontario Working Coalition on the Government’s proposed workplace reforms:
We share in the Government’s desire for broadly inclusive growth. However, in order to achieve this, we need to ensure that we are not risking job losses, rising consumer costs, and economic hardship as a result of over-regulation.
“Government cannot regulate prosperity. To demonstrate true fairness and compassion for workers, we must ensure Ontario has a strong economy to help create jobs and increase economic growth.
“That is why we are urging the government to take time this summer to have an independent third party conduct a comprehensive economic impact analysis on the proposed reforms to consider the unintended consequences to employers. In addition, as the province’s biggest employer, the government must fully understand what these changes will cost in relation to the provincial treasury as well as social services and other government agencies.
“Why is evidence-based policy important? Only three years ago, the Premier’s own Minimum Wage Advisory Panel conducted extensive research and concluded: ‘In the Canadian context, researchers have generally found an adverse employment effect of raising minimum wages especially for young workers…typically those studies find that teen employment would drop by 3 to 6 per cent if the minimum wage is raised by 10 per cent.’
“While the Changing Workplaces Review cautioned that any regulatory change shouldn’t impair the competitiveness of businesses in the province, the reforms outlined in Fair Workplaces and Better Jobs Plan thus far do not provide the balance needed to help ensure a competitive environment for Ontario.
“But we have time. Now we must work cooperatively with government to identify the scale of the economic impact of these changes and help employers transition into any new policy regime. We will continue to be cooperative partners with government to find solutions that will, where possible, inhibit negative impacts on the growth of Ontario’s economy, our people, and our communities.”
Your business could be eligible to save on their bills the the Ontario Government’s Industrial Conservation Initiative (ICI) program. This program offers significant cost saving for businesses with average peak demand of over 500 kilowatts (kW). Many of your members might be eligible to save on average one-third off their electricity bills if they apply before June 15, 2017.
The Ontario Chamber of Commerce has developed an Informational Flyer on the details about the ICI program and how and when to apply. The deadline to apply for the ICI is approaching, please share with your members as soon as possible. Eligible businesses must apply between June 1 – 15. For additional information see the Ministry of Energy’s backgrounder on the ICI program.
You can also help us collect data to inform our future policy work on electricity pricing. Please fill out the Ontario Chamber’s short survey. It is only 3 questions and takes 1 minute to complete!
Take the Survey Now!
As a result of wage settlements resulting from the provincial arbitration system, the costs of emergency services have increased at over three times the rate of inflation annually since 2002.
Today the Oakville Chamber of Commerce, in partnership with the Ontario Chamber of Commerce, formally released an open letter to Premier Kathleen Wynne addressing deficiencies in the arbitration system. Cc’d on the letter were Minister of Labour Kevin Flynn and Minister of Municipal Affairs Bill Mauro.
As recognized in the letter, the cost escalation resulting from settlements is unsustainable, particularly in an era of fiscal restraint generally, and especially in an environment where municipalities are greatly restricted in their options to raise new revenue.
“Our principal concern is that the current system does not adequately consider the capacity of municipalities to pay” stated John Sawyer, President of the Oakville Chamber of Commerce. “In order to ensure the fiscal sustainability of municipalities, we believe that immediate action is required to address deficiencies within the provincial interest arbitration system.”
Therefore, the Oakville Chamber of Commerce is calling on the Ontario Government to take 3 important steps:
- Reform the provincial interest arbitration system to reflect the current capacity of Ontario municipalities to pay for increased service costs
- Improve efficiency by requiring that arbitration decisions be delivered in less than 12 months.
Read the letter here.
- Improve accountability and transparency for the taxpayer.
As 2016 comes to an end, we’ve come to reflect on our meaningful advocacy wins for our members throughout 2016.
Here is a snapshot of some of the most recent progress we’ve made:
Closing Ontario’s Tourism Gap
Ask: In our recently release Closing the Tourism Gap: Creating a Long-Term Advantage for Ontario the Ontario Chamber Network advocated that the Ontario Government develop a government-wide Ontario tourism strategy with measurable targets. We also highlighted the need to work with tourism operators to reduce the regulatory and cost burdens within the industry by adding tourism to the Red Tape Challenge.
Win: In Ontario’s Strategic Framework for Tourism in Ontario the government explicitly acknowledged the efforts and leadership presented by the Ontario Chamber Network through our solution based advocacy approach in the tourism sector. The report recognizes our efforts stating, that “The government is encouraged by the leadership that industry is already taking. Recently, the Ontario Chamber of Commerce released a forward-looking report on how the sector can collaborate to improve avenues for success. The report provides an examination of provincial tourism industry trends and presents recommendations for government and industry to work together to boost long-term competitiveness and generate sustainable demand for Ontario tourism.”
Win: The mission set out within the report “to meet or exceed global industry growth over a five-year period, which the world tourism organization estimates will grow by an average of 3.3 percent per year until 2030” satisfies the Ontario Chamber Network’s recommendation of a long-term strategy with a clear industry growth target.
Win: The Ontario government has signalled that it will add tourism to the Red Tape Challenge, a direct recommendation of the Ontario Chamber Network to help improve the operating environment for businesses.
Enhancing Ontario’s Agri-Food Trade Relationships
Ask: As recognized in our recent report Fertile Ground, global awareness and trust in Ontario agri-food products enhances the competitiveness of our industry abroad.
Win: On November 14, 2016 Jeff Leal, Minister of Agriculture, Food and Rural Affairs and Michael Chan, Minister of International Trade, arrived in India to lead Ontario’s first-ever agri-food trade mission. The mission was an attempt to attract new investment and aimed to continue to grow the agri-food sector globally. We are confident that the mission will enhance Ontario’s agri-food trade relationship with India. We look forward to continuing to work alongside government to ensure that the business community is well positioned to leverage new trade opportunities in the global marketplace.
Increasing the Number of Economic Class Immigrants
Ask: In our recent report Passport to Prosperity: Ontario’s Priorities for Immigration Reform, the Ontario Chamber Network urged the federal government to reinstate the economic category immigration target to the 2015 range of 172,100 to 186,700 by no later than 2017/18.
Win: During his keynote address at the launch event of the Ontario Chamber Network report in April 2016, Minister McCallum indicated his support for this and the remaining recommendations in the report.
Win: In October 2016, Immigration Minister John McCallum announced that the Federal government plans to keep the immigration targets for 2017 at 300,000. However, the new plan represents an increase in a higher target for economic immigrants – increasing from 160,6000 in 2016 to 172,500 in 2017. This measure will contribute to the ability of Canadian employers to attract the global talent that they need to remain competitive.
Shaping the Future of Provincial Regulatory Reform
Ask: Over the course of our five-year Emerging Stronger series and in our pre-budget submissions, the Ontario Chamber Network has regularly called for a reduction in the regulatory burden on Ontario businesses.
Win: In the Ontario Economic Outlook and Fiscal Review, the government announced a series of steps to address the cumulative burden facing Ontario business:
- The Red Tape Challenge, a strategy encouraging Ontarians to submit comments to a Regulatory Modernization Committee regarding regulations that impact them;
- A Regulatory Centre of Excellence, which identifies and champions best practices from around the world;
- A Government Modernization Fund to address the cost of modernizing outmoded regulatory processes;
- A pledge to reduce the time taken to review air and noise approvals by at least 50 percent within the next two years, allaying concerns surrounding environmental compliance; and,
- A promise to maintain the industrial exception in the Professional Engineers Act.
Shaping the Future of Mining in Ontario
Ask: The Ontario Chamber Network called for matching federal and provincial commitments for infrastructure investment in the mining sector in its report, Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire.
Win: The Ontario Government announced it was committing $1 billion to the mining sector irrespective of federal funding.
Establishing Greater Transparency and Lower Costs in Energy Pricing
Ask: The Ontario Chamber Network called on the Ontario government, in its July 2015 report Empowering Ontario: Constraining Costs and Staying Competitive in the Electricity Market, to provide greater transparency in energy pricing.
Win: The updated Ontario Energy Report, released in March 2016, included an industrial price chart that provides a clearer cost picture for Class A businesses.
Win: In the September 2016 Throne Speech, the government announced that the Industrial Conservation Initiative will be expanded so that any company that consumes more than 1MW will be eligible. Accordingly, an additional 1000 companies in Ontario are now eligible to save between 14% to 30% on their bill, a noticeable increase from the 300 companies currently enrolled in the program.
Win: The removal of the Debt Retirement Charge on commercial, industrial, and other non-residential electricity users on April 1, 2018, nine months earlier than expected.
Supporting Investment in High-Speed Broadband Infrastructure
Ask: In the Ontario Chamber Networks’s federal pre-budget submission, we urged the federal government to move beyond its Connecting Canadians initiative and invest in critical broadband infrastructure.
Win: The federal government announced in its most recent budget that it is investing $500 million over five years in a new program to increase high-speed broadband service in rural and remote communities.
Ask: On July 19th, 2016, the Ontario Chamber Network sent a letter to Premier Kathleen Wynne asking the provincial government to commit infrastructure dollars to developing and expanding broadband infrastructure across rural and remote Ontario.
Win: On July 26th, 2016, the Ontario government announced their plans to invest $90 million dollars to bring high-speed Internet access to over 300 communities in Ontario.
Improving Income Reporting Practices
Ask: In the August 2015, report Harnessing the Power of the Sharing Economy, the Ontario Chamber Network called on the provincial government to analyze income reporting levels in order to better understand the motivating factors behind providers’ decisions to report or not report income, and establish and clarify appropriate rules moving forward (e.g. minimum income thresholds).
Win: On February 19th, 2016, the Ontario government announced a pilot project with Airbnb to help educate the home-sharing service’s hosts on how to report their income and other key regulatory aspects of their service industry.
Modernizing the Workplace Safety and Insurance Board
Ask: Recognizing that the proposed Preliminary Rate Framework from the Workplace Safety and Insurance Board could increase the premium rates paid by employers and, subsequently, the cost of doing business in the province, the Ontario Chamber Network provided the WSIB with a written submission outlining 10 recommendations that the WSIB and the Government of Ontario should adopt to mitigate the impact of the proposed reforms.
Win: In December 2015, the WSIB released an updated Rate Framework that incorporates a number of suggestions and recommendations from the Ontario Chamber Network, including 6 of the 7 recommendations directed to the WSIB in our September 2015 submission:
Win: In September 2016, WSIB Chair Elizabeth Witmer announced a 5% reduction on the average premium rates for 2017, the first rate reduction since 2001.
- Provide a public and detailed analysis of how the proposed rate framework changes will impact employers;
- Introduce a surcharge mechanism to ensure that employers with effective health and safety programs don’t pay the cost of poor performing employers within their class;
- Expand the proposed class structure;
- Reconsider implementing the predominant class model;
- Retain the Second Injury and Enhancement Fund (SIEF);
- Implement a weighted cost claims ‘window’; and
- Eliminate the Fatal Claims Adjustment Policy.
Mitigating the Impact of Retirement Security Reform
Ask: Recognizing the burden of the proposed Ontario Retirement Pension Plan (ORPP), the Ontario Chamber Network called on the government to delay its implementation to provide more time for businesses to adjust to the new financial obligations. We also asked that the government provide greater clarity and broader classification for “comparability” to include some Defined Contribution plans. All the while, the Ontario Chamber Network was working toward our stated, preferred option to support retirement security through a national Canadian Pension Plan (CPP) enhancement instead of a stand-alone ORPP.
Win: In June 2016, Finance Minister Charles Sousa announced that the Government of Ontario would be abandoning the ORPP in favour of an enhanced CPP, avoiding increased regulatory fragmentation and thus administrative burden – avoiding significant consequences for Ontario’s business community.
Win: In February 2016, Premier Kathleen Wynne announced that her government was delaying the first phase of ORPP contributions from January 1, 2017 until 2018.
Win: The government expanded the definition, meaning that employers who already provide certain DC pension plans for their employees will be exempt from contributing to the new ORPP.
The Oakville Chamber is asking businesses and residents to help identify and improve regulations that are unclear, outdated, redundant or unnecessarily costly through the Ontario Government’s new online consultation tool – The Red Tape Challenge.
Through this platform, the government is looking for input from business, industry associations and other stakeholders to identify regulatory challenges in an effort to streamline services that will ultimately help businesses and economy grow. Community engagement is critical to helping the government create faster, smarter and more streamlined government-to-business services.
“The Oakville Chamber of Commerce is encouraged to see the Ontario Government taking steps to reduce the regulatory burden through the launch of the Red Tape Challenge. Last summer, the Ontario Chamber called on the province to adopt a crowd-sourced approach to regulatory change. We encourage the government to make burden reduction a priority. By seeking new opportunities to reduce the cumulative regulatory burden on businesses, we are helping to grow Ontario’s economy.” said Kerry Colborne, Chair of the Oakville Chamber of Commerce. “The Province wants to hear from Oakville businesses and residents.”
Making sure that regulations are up to date and relevant is part of the Ontario’s Business Growth Initiative – the government’s plan to modernize business regulations, lower business costs and make more Ontario firms into global industry leaders.
“By ensuring our regulations are up to date and relevant, the government is creating the right climate to help Ontario including Oakville businesses invest and grow, creating rewarding , high paying jobs and a more prosperous economy.” said Kevin Flynn, MPP Oakville.
Based on a number of economic factors, including investment and export opportunities, the Ontario Government identified 6 business sectors to focus on over the next 2 years:
The Province is currently consulting on auto parts manufacturing sector regulations until May 31, 2016.
To provide your input or learn more, visit https://www.ontario.ca/page/red-tape-challenge today.
- Auto parts manufacturing
- Food processing
- Financial services
- Chemical manufacturing
The Ontario Chamber of Commerce released a new report, Harnessing the Power of the Sharing Economy, which calls on governments to move quickly and boldly to ensure that Canada and Ontario realize the full potential of the sharing economy. The report calls for immediate action to be taken to fill any insurance gaps and ensure tax compliance.
If adopted, the recommendations would make Ontario the first jurisdiction in the world to take a comprehensive approach to address the growth of the sharing economy.
The past several years have witnessed the rise of new models of consuming and accessing goods and services, often referred to as the “sharing economy”. Fueled by companies such as Uber, Autoshare, and Airbnb, the sharing economy enables individuals to obtain rides, accommodations, and a wide range of other goods and services via online platforms in exchange for monetary and non-monetary benefits.
The report finds that nearly two thirds of Ontarians believe that the growth of companies in the sharing economy is good for Ontario’s economy. It also finds that nearly 40 percent of young Ontarians (18-34) are consumers in the sharing economy.