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Automation may be the future, but it hurts employment

I went to see a movie a few weeks ago, and I was shocked at what I saw when waiting to purchase my tickets — a long row of automated machines and a single employee. The employee was there to deal with cash purchases only. Everyone else was encouraged to use their credit or debit cards at one of these computers to buy their movie tickets.

It’s not just Cineplex. Shoppers drug mart now has a series of machines for self-checkouts (Debit/credit only) and you can order fast food at Macdonalds using a fancy touchscreen.

Metro, the grocery chain, announced earlier this week they will be testing scan-and-go technology so they can increase the number of self-checkout machines in their stores. The reason? To offset the higher minimum wages in Ontario and Quebec.

Metro already has self-scanning checkouts in 30 stores across Ontario, and plans to add more by the end of the summer, including a few at the Food Basics discount store.  After the pilot, more machines will be added, assuming it is successful.

Automation may be the way of the future, but it will have a drastic impact on the younger generation, most of whom get their first jobs at places like Cineplex, Shoppers, and Metro. If those jobs disappear, where will these young people go to make an income? Where will they gain valuable work experience?

A study written by the McKinsey Global Institute predicts that by 2030, as many as 800 million jobs could be lost worldwide to automation, particularly in middle and low-skill occupations. This will create a two-tiered labour market, according to the report, in which “stepping stone jobs” are eliminated while high-paying creative jobs are not.

“New jobs will be available, based on our scenarios of future labor demand and the net impact of automation,” the report reads. However, people will need to find their way into these jobs. Of the total displaced, 75 million to 375 million may need to switch occupational categories and learn new skills.”

At the same time, the report says that worries about future jobs are unfounded, as the labour market will adjust over time. The benefits of automation, which were outlined in a previous report by McKinsey, such as an increase in productivity and efficiency, will outweigh the dangers. “Automation of activities can enable businesses to improve performance, by reducing errors and improving quality and speed, and in some cases achieving outcomes that go beyond human capabilities.” In the United States alone, automation will equal savings of approximately $2.7 trillion in wages.

The key in these findings is that change occurs slowly over time. Replacing minimum wage workers with automated machines the year the minimum wage increases, is moving rather quickly. Other jobs need to open up for younger people before their traditional positions are eliminated. The unemployment rate in Canada may be relatively low at the moment at 5.7 per cent, but for youth, that number is 10.3 per cent. That number is going to increase unless companies make room for young people, despite their move to automation.

What do you think? Let us know in the comments below.

Ontario set to increase minimum wage to $15

Tuesday, Ontario Premier Kathleen Wynne officially announced a plan that would see the province’s minimum wage increased to $15 by 2019.

“The economy has changed. Work has changed,” Wynne said in a statement. “It’s time our laws and protections for workers changed too.

Employees can expect the minimum wage to be raised to $14 per hour on Jan. 1, 2018 before the government phases in the last dollar in Jan. 2019. After that, minimum wage will be increased annually at the rate of inflation.

The province is also mandating equal pay for part-time, temporary, casual, and seasonal employees doing the same job as full-time employees. This is a critical statement to make, as too often changes to employment laws only affect full-time workers, leaving those struggling in short-term contracts behind.

Other changes to the Ontario’s employment and labour laws include:

  • Increasing vacation time to at least three weeks after five years within a company
  • Managing that employees be paid for three hours of work if a shift is cancelled within 48 hours of its scheduled start time
  • Employees can refuse shifts without repercussion if asked with less than four days notice
  • Expanding personal emergency leave to include two paid days per year for all workers

There will also be some slight changes to union laws, which will establish card-based certification for temporary workers, among other things.

It’s still unclear how the business community will respond to this announcement, but most employees living on the current minimum wage will be supporting it. At the current minimum wage, a full-time employee will make on average $23,712. As Women’s Post has previously mentioned, this kind of salary (especially considering the state of the real estate market) doesn’t leave a lot of wiggle room to pay for anything other than shelter, transportation, and amenities.

This will also give the Liberal party a leg up come the next provincial election. The $15 minimum wage is a big political issue for millennials and other young people venturing out into the working world. The timing of this announcement, along with the Liberal’s plan for free prescription medicine for those under the age of 25, is no accident.

 

NOTE: the NDP came out with a plan to increase minimum wage to $15 prior to the provincial budget release.

 

Are Canadians investing in women?

March 8 is International Women’s Day. During this time, it’s easy to think back to all of the trials and tribulations women have experienced. Just last week, there was a tragic case in Halifax in which the victim of sexual assault was wronged thanks to an outdated definition of consent. There has been a large investigation into “unfounded” sexual assault cases by the Canadian police. And of course, there is the incredible sexism women are facing in the United States from their own politicians.

No, Women’s Post is not going to focus on that this March 8 (at least, not too much). Instead, Women’s Post is choosing to celebrate this important day by speaking with successful business women, gathering their advice for other women, and learning about who they invest in. Here is a teaser with some of the results:

 

Visit our women of the week page for profiles of successful Canadian women.

When will the minimum wage reflect reality?

Earlier this month, the Ontario government announced an increase to the minimum wage from $11.25 to $11.40.

In a statement, Kevin Flynn, Ontario Minister of Labour, said that “our government understands that cost(s) of living increases every year. In order to help families keep up, we’ve tied the minimum wage to increases in inflation, putting more money into the pockets of Ontario workers each year.”

And man, have they ever helped! An extra 15 cents! Ontario residents should be pleased, over the moon even. Ever dreamed of owning a car, being able to take your family on trip, or even just splurging on a movie once a week? Well, now you still won’t be able to do it, but you are closer to to the dream, right?

Let’s do some simple math.

Assuming you are a full-time worker (40 hours a week) living off of minimum wage, this will increase your bi-weekly salary to $912 — before taxes of course. That means your annual income prior to taxes is about $23,712.

The average cost of an apartment in a city like Toronto is approximately $1,500, which means that over $17,000 of that money will be spent on rent, not including amenities like hydro or Internet. Groceries are an extra one to two thousand dollars a year depending on how big your family is and how hungry you plan on being.

Of course, then there are medical bills, transportation costs, and cell phone charges. But hey, you got a raise, so not to worry.

The problem with these minimum wage hikes is that it is tied to inflation, as was explained by the honourable minister of labour. Canada’s workforce is expected to be grateful with this small pay increase, but in reality, it’s not going to help. And pretending it will is extremely dangerous.

While the price of labour increases with inflation, so does the cost of goods. This means that a minimum wage rises at a similar interval as the cost of bread and will do nothing to alleviate the poverty rate.

If the government really wants to make a difference, it will work towards raising the minimum wage to a level that allows families to live in a sustainable way.  Society needs workers who perform these minimum wage jobs, and they should be paid accordingly. Minimum wager earners work hard, with no benefits or security. And yet they are rewarded with a dismal pay cheque.

No one should have to choose between a roof over their head or groceries for the month. Ontario CAN do better and it’s time the government seriously and actively considers a higher minimum wage.

 

Minimum Wage in Canada*

  • Ontario: $11.40
  • Alberta: $12.20
  • British Columbia: $10.85
  • Manitoba: $11.00
  • New Brunswick: $10.65
  • Newfoundland and Labrador: $10.50
  • Northwest Territories: $12.50
  • Nova Scotia: $10.70
  • Nunavut: $13.00
  • Prince Edward Island: $11.00
  • Quebec: $10.75
  • Saskatchewan: $10.72
  • Yukon: $11.07

 

*According to the Government of Canada.

Meet YWCA Toronto’s 2016 Women of Distinction

Half of the federal government’s Cabinet is made up of women, but 90 per cent of women do not report sexual abuse. Investment in community infrastructure is on the agenda again, but in Toronto alone, there are 95,000 households on the social housing waiting list.

While it would be wrong to claim there has been little or no improvement on so-called “women’s issues,” it would be equally erroneous to suggest that continued progress is inevitable, especially for women and girls living in poverty, fear, and isolation. The work to secure equality and social justice remains an ongoing challenge. That’s why we need to support associations like YWCA Toronto.

For 140 years, YWCA Toronto has provided shelter and support to those seeking refuge from violence and abuse; offered training and resources to help women into jobs and out of poverty; increased participation and empowerment among girls; and advocated for a fairer and more equitable society.

Over the past year alone, more than 6,000 women received training, job-seeking assistance and links to community resources through YWCA Toronto’s employment and skills development centres. More than 900 women and their families found permanent homes through YWCA Toronto and 1,300 women and their children were able to escape and recover from violence. Working together, YWCA Toronto was able to help 1,000 more women and young girls than the previous year.

YWCA Toronto has also played host to the launch of the provincial government’s Action Plan on Sexual Violence and Harassment; advocated for better child care, poverty reduction and national housing strategies; and called for action on Truth and Reconciliation recommendations, among other things.

YWCA Toronto recognizes that these results can only happen if women work together. For the past 35 years, YWCA Toronto has honoured extraordinary women who have worked tirelessly to make a difference for women and girls across the city, country, and the globe.

More than 200 women have received a Women of Distinction Award since the first awards ceremony in 1981. They are game changers in their respective fields – law, education, health, culture and the arts, politics, environment, international development and corporate leadership. These women have used their talent to improve the lives of other women and young girls, and helped raise awareness about inequities in local, national, and international communities, and create systemic change.

See for yourself. On May 26 YWCA Toronto is hosting the 2016 Women of Distinction Awards ceremony – the organization’s biggest fundraising event of the year. Proceeds support the over 30 programs that serve more than 12,000 women and families in the Greater Toronto area.

There will be eight women receiving the honour of a Woman of Distinction award. These women are truly awe-inspiring:

Roberta L. Jamieson (President’s Award) First Nations leader, highly acclaimed public figure and CEO of Indspire, Roberta has spent five decades in numerous breakthrough positions advocating for change and justice for Indigenous people and Canada.

Tessa Hill and Lia Valente (Young Women of Distinction) Tessa Hill and Lia Valente were 13 when they took on rape culture as a documentary project and turned it into a successful public campaign bringing sexual consent into Ontario’s health education curriculum.

Colleen Johnston (Corporate Leadership) This senior executive from TD Bank Group and women’s leadership guru has successfully championed for stronger representation of women in corporate leadership, which helped to significantly increase the number of women in TD’s executive ranks.

Georgia Quartaro (Education) Georgia created innovative education programs and violence-against-women training that reaches women and marginalized groups who have experienced trauma and responds to their needs and potential.

Reeta Roy (International Development) Reeta Roy saw that opportunities and conditions for girls and women farmers in African countries were disturbingly unequal to men’s. The MasterCard Foundation she heads guarantees that at least 50 percent of program participants are women and girls.

Elizabeth Shilton (Law and Justice) Elizabeth argued before the Supreme Court to uphold the rape shield law; won a pay equity case ending wage inequities; defended the right of sexual assault survivors to keep their names out of the public eye; and prevented the disclosure of counselling records of sexual abuse survivors.

Dr. Cheryl Wagner (Health) When HIV/AIDS first hit women, Dr. Cheryl Wagner was one of the first – and few – Toronto physicians to whom they could turn for expertise, help and health care. She extended her work to include researching and advocating for services to address their distinct needs.

Celebrate these women and what they have accomplished! To get your tickets to the exciting event at The Carlu (444 Yonge St.), visit www.womenofdistinction.ca.

Separate parental leave for dads could become a Canadian reality

Having a newborn is a life-changing and miraculous experience, but can leave parents exhausted if they are forced to split their time between work and taking care of an infant.

Luckily, the Canadian government is looking into granting new dads separate parental leave so that both parents can help raise a new baby together. Currently, the government splits employment insurance (E.I) benefits for new parents, which puts unnecessary stress on the first year of a child’s life. Maternity leave is 35 weeks and is most often taken solely by the mother.

The system of splitting parental leave allows the mother to take the first 17 weeks of maternity leave and the father can take the remaining 18 weeks of leave if desired with E.I benefits. This leaves both parents in a tough position and most often, the mother will continue to stay home during the second half of parental leave.

Quebec is the only province that has a different parental leave arrangement set in place for families. Quebecois dads can take an extra five weeks of parental leave and will continue to make up to 70 per cent of their pay check while they do so. Seventy-eight per cent of dads decided to stay home in 2012 . Federal Labour Minister, MaryAnn Mihychuk will be opening discussions to obtain similar standards for every province in the country.

Changing these standards and encouraging paternity leave more would benefit families, and women. First of all, both parents could take parental leave together. Raising a baby is hard work, especially in the initial years, and removing the need to work right way would lower stress for both parents.

Parental leave is also beneficial for women because it would reduce the stigma that men are more dependable employees because they don’t take parental leave as a mother is expected to. Having equal opportunity for both parents to stay at home would even the playing field in the job spectrum.  Any opportunity that increases gender equality in the workplace and at home is a welcome one.

Furthermore, discussions around parental leave will also potentially allow parents to have 18 months of parental leave rather than 12 months. When a child is only one year old, it is very difficult to  leave them in someone else’s care to return to work. At 18 months, toddlers have reached more substantial milestones such as walking and beginning verbal skills. From experience, it is much easier to leave a child that can walk and communicate at childcare than a baby who is still crawling.

Even if the necessary approvals for separate parental leave lie well in the future, it is exciting that these discussions are occurring at a federal level. The Canadian government is finally moving away from monetary solutions, such as childcare benefits as a replacement for extended parental benefits. Instead, the liberals are seeing the value in staying at home with your kids. This quality versus quantity approach to governing feels like a fresh start for Canada and, hopefully, these discussions will become realities for families in the future.