The federal government plans to move out-of-work Canadians into the employment insurance system when a key emergency benefit runs out in the fall, and provide an EI-like support for millions who can’t qualify under existing rules.
The change signals a potentially sweeping overhaul to the decades-old social safety net criticized in recent years for not keeping up with a modern labour force marked by increasing contract and gig work.
It was partly because of those holes that the government created the $80-billion Canada Emergency Response Benefit at the start of the pandemic, which is set to wind down over the coming weeks. Those who already qualify for EI will be moved to that program.
The government is promising a parallel, transitional benefit with EI-like components for those who can’t yet — “and I emphasize yet,” said Employment Minister Carla Qualtrough — get into the EI system.
It will include access to training and the ability to work more hours without having as steep a clawback in benefit payments.
The government is also promising to relax EI eligibility rules like the number of hours required to receive support payments.
Speaking Friday morning, Prime Minister Justin Trudeau said the goal is to move everyone receiving CERB to employment insurance, and cover anyone looking for work “with a better, 21st-century EI system.”
Details will be rolled out in the coming weeks.
The government’s most recent CERB figures show $62.75 billion in benefits to 8.46 million people. About half of those recipients have gone to EI-eligible workers.
Those eye-popping numbers were the reason the EI system was shelved in favour of the CERB in March, as federal officials worried the volume of claims would overwhelm the decades-old system.
Moving past the CERB
The government is still expecting millions to be on EI come the fall — about four million, Qualtrough said, adding that the system has been tested and was ready to handle the deluge upon its restart.
“We believe that the CERB has served its purpose and the reason it was created is no longer the main focus of our efforts as a government to support workers,” Qualtrough said during a mid-afternoon press conference. “We are going to move on to something different.”
The Liberals are hoping the change prods more Canadians to either go back to work or look for a job as the economy moves into what the Bank of Canada has described as a recuperation period before a long, bumpy recovery.
The recuperation appears to have started in May when the economy grew by 4.5 per cent, Statistics Canada reported Friday, re-emerging from severe lockdowns in March and April.
Extending commercial rent break
That figure beat expectations, and a further sign of optimism was a preliminary estimate of five per cent growth in June, which will be finalized next month.
The national data agency said rebounds in May were seen across multiple industries, including retail trade registered that saw its largest monthly increase since comparable readings began in 1961.
“May’s GDP numbers demonstrate that our economy is rebounding from all-time lows, but the growth numbers we’re seeing simply represent businesses reopening after needed lockdowns,” said Trevin Stratton, chief economist at the Canadian Chamber of Commerce.
Despite the two months of growth after two months of negative readings, Statistics Canada’s preliminary estimate is that economic output contracted by 12 per cent in the second quarter compared to the first three months of 2020, which would be a historic drop.
Statistics Canada said economic activity still remained 15 per cent below pre-pandemic level despite the gains over May.
Recouping the remaining percentage points will take months, if not longer. Much will rest on how many companies may yet close, how many jobs disappear with them.
“It’s a question of uncertainty at this point and how much damage the shutdowns have done,” said Benjamin Reitzes, BMO’s director of Canadian rates and macro strategist.
“We don’t really have that much information at this point, but if you consider the number of small businesses that are under significant pressure, maybe not surviving this period and the scarring broadly on the economy from things like that … it’s going to take time to recover from that.”
The federal government also announced Friday that it is extending a commercial rent-relief program through August as a lifeline to many small businesses whose revenues, while slowly returning, still lag behind their fixed costs.
So far the program has helped about 63,000 small business tenants through forgivable federal loans totalling $613 million. It is well below what the government hoped when it rolled out the aid.
The Canadian Federation of Independent Business said the announcement is good news for those who can access the program, but called it a “slap in the face” for those whose landlords refuse to apply.
The organization called on the federal government to allow tenants to apply directly for help. “Rent relief needs an overhaul now,” said Laura Jones, CFIB’s executive vice-president.
Elgin singer one of first to get back on stage for live gig
AN ELGIN singer will be one of the first local acts to get back to gigging this weekend at an Inverness venue.
Live music is returning to a second city venue this weekend as The Botanic House gets ready to welcome back performers and music fans.
Singer Colleen Murphy (36), from Elgin’s Barlink Road, will kick off the first night line-up on Saturday, December 6, at 5pm.
Colleen said: “It’s been a long and hard road for all us entertainers.
“This is definitely a light at the end of the tunnel.
“I want to wish everyone to ‘break a leg’ over the next few weeks and welcome all from tier 1 to join us. Let the music play.”
The Castle Street venue, which opened just over a year ago, has had strict Covid-19 procedures in place since its post-lockdown return in September.
Further precautions have now been taken, including social distancing at all times within the venue, to allow a return to live music.
The return of live gigs will be music to the ears for local acts – many of whom have found themselves out of work for nine months.
The Botanic House general manager Tom Wilding said: “We are really excited to get live music back into The Botanic, as a live music and entertainment venue.
“The past months have been challenging with the constantly changing restrictions.
“In true Highland spirit though, we have risen to the challenge, reinventing ourselves to give our loyal customers a great venue with new and exciting food and drink options to enjoy.”
Gigs are planned until the end of the year.
Last month fellow Inverness venue The Ironworks held what was believed to be the first live indoor show in Scotland since lockdown in March when folk-rock band Torridon performed to a socially distanced audience of 100 people.
Back in April, Colleen, a full-time social work student at the Robert Gordon University, raised nearly £500 for Moray Women’s Aid by staging an online gig from her living-room.
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the hard road to safety in the gig economy
As the federal government prepares to unveil its industrial relations omnibus legislation next week, ACTU secretary Sally McManus said a key lesson of the coronavirus pandemic was the need to confront the insecurity of casualised and precarious work. “We need to finally confront our biggest weakness – the fact we have far too many insecure, casualised, labour hire, gig jobs that have no security and few rights,” she said.
For Bruna, who arrived in Sydney in February, the pandemic created a huge demand for home delivery and it seemed a decent job option until the accident.
On May 8, the 26-year-old was riding through Chatswood delivering Asian takeaway when she was hit by an opening car door, throwing her off her rented bicycle. She had two surgeries to insert, then remove, a steel plate. Her arm was in plaster for six weeks before the bandages finally came off this week.
The accident meant she could not work until September, but she was one of the lucky ones: the car insurance covered her medical bills and provided her with about $170 in weekly payments to cover lost wages. Uber Eats had signed her up for a Chubb insurance policy that provided her with a lump sum of about $5000 in compensation.
“Sydney is unsafe for cyclists,” she says. “There are not enough cycleways and the city can be confusing.”
SafeWork NSW has so far reported 65 dangerous safety incidents involving food delivery riders since January this year. They include injuries and deaths.
But who will take responsibility for providing a solution in what is a notoriously unregulated industry? As independent contract workers, food delivery riders have no employment rights under the Commonwealth Fair Work Act to legal minimum rates of pay, sick leave, superannuation or unfair dismissal protection. The federal government shows no sign of wanting to regulate the gig economy. Its industrial relations changes next week are not expected to include any proposals to change the work rights of gig workers.
In response to the recent spate of deaths, it says it will make rider safety a priority agenda item for the next meeting of national work health and safety ministers.
The NSW government has launched a SafeWork investigation into the deaths to inform a taskforce that will consider “potential avenues for regulatory reform to improve safety”.
NSW Labor, the Greens and peak body Unions NSW have all urged the state government to expand the coverage of the workers’ compensation scheme to cover food delivery riders and to boost the enforcement of occupational health and safety rules. Unions NSW general secretary Mark Morey, who has worked with Airtasker to introduce minimum pay rates for workers, says “all work, regardless of the employment definition, should attract a minimum wage, leave loadings, superannuation and injury insurance”.
Tim Fung, Airtasker co-founder and chief executive officer, says it promotes public liability insurance for job taskers and optional accident protection insurance.
“When we spoke with Unions NSW, we realised our interests were aligned,” he says. “We want people to get paid fair wages. We want people to be able to work in a safe and trusted environment and we want people to have real opportunity to progress their careers.”
Federal Labor has floated the idea of extending the Fair Work Commission’s powers to regulate the gig economy and deal with vulnerable workers in “employee-like” circumstances.
“The claim that a visa worker whose only asset is a second-hand bike is somehow an empowered independent contractor is ridiculous and dangerous,” Labor’s industrial relations spokesman Tony Burke says.
A spokeswoman for Uber Eats declined to comment on individual cases, but said it covered road and bike safety in online education modules and an annual cycling safety test. She says the company was always looking for ways to improve safety.
“We will continue to advocate for minimum insurance standards across platforms to ensure all those earning through independent work have access to insurance regardless of which app they are using,” she added.
Employment law experts and unions have long argued that food delivery riders are not truly independent contractors and should be deemed as employees because of the control technology companies exercise over their pay rates and conditions.
Law professor Joellen Riley Munton from the University of Technology Sydney and Transport Workers’ Union national secretary Michael Kaine support a pragmatic approach to providing gig workers with some rights, if they do not qualify for full employment rights.
In late 2018, the TWU won an unfair dismissal case in the Fair Work Commission on behalf of Foodora delivery rider Josh Kluger by proving he was an employee and not an independent contractor. But that decision only applies to him. Other workers would need to make an argument on a case-by-case basis.
While gig platforms including Uber have proven that they might lose occasional battles in courts and tribunals over the legal status of drivers and delivery riders, they are still winning the war against being bound by legal definitions.
Last month, California voters supported Uber, Lyft and delivery service Doordash by rejecting a 2018 State Supreme Court ruling, enshrined in a 2019 state law, that said workers who were controlled by the companies and did not operate their own business were deemed employees.
The companies reportedly spent more than $200 million (A$270 million) on a campaign to convince Californians to approve a ballot measure known as Proposition 22 which exempted gig workers from state laws. This meant the gig economy companies could continue to treat their workers as independent contractors.
Kaine says that decision demonstrates how hard gig companies are prepared to fight against any attempt to squeeze them into the legal definition of an employee.
“If you just deem everyone to be employees, you get the type of nuclear response we had from California. That is not in anyone’s interest,” he says.
Kaine favours extending protections provided to independent owner-drivers to bicycle delivery workers. NSW, Victoria and Western Australia have laws that allow them to regulate the working conditions of transport workers.
Professor Riley Munton says Chapter 6 of the NSW Industrial Relations Act could be extended to food delivery cyclists among other transport workers. Chapter 6 provides owner drivers’ rights to collectively bargain over minimum rates of pay and basic working conditions. Improved pay and conditions would help reduce the imperative to rush jobs to improve poor earnings and avoid being blocked from job apps.
Workers’ compensation legislation could also be amended to deem delivery cyclists to be “workers”, and the platform companies to be their employers. Because safety training for the cyclists “will never be enough while their work is poorly paid and precarious”.
Law firm Slater and Gordon has lodged a workers’ compensation claim on behalf of Lihong Wei whose husband, Xiaojun Chen, was killed in September while working for food delivery company Hungry Panda in Sydney.
Practice group leader Jasmina Mackovic says it was not clear whether government insurer EML would recognise Chen as a “worker”, entitling his wife to claim death benefits. “At the moment, it is a grey area,” she says.
Australian lawyer Sheryn Omeri, who practises as a barrister in Britain, said legislation was needed to hold food delivery operators responsible for the safety of their riders.
Omeri successfully argued in the Employment Appeal Tribunal and the Court of Appeal that London Uber drivers are “workers”. In the UK, a “worker” has basic employment rights including to the legal minimum wage and holiday pay, but not to the full range of protections, such as against unfair dismissal. The Supreme Court recently heard a final appeal but is yet to hand down a decision.
In March, France’s highest court for civil matters, the Court of Cassation, determined that Uber drivers are employees rather than independent contractors.
“In France, as in Australia, the intermediate category of “worker” which was created in England to extend some employment protections to those who have some independence but are essentially dependent on the supply of work by another, does not exist. The choice for the French court was accordingly, a stark one,” Omeri says.
University of Adelaide professor of law Andrew Stewart says there is a strong argument that food delivery riders should be treated as employees “and if not, at least be given rights as employees for many purposes, particularly to workers’ compensation”. He described the California decision on Proposition 22 as an “outlier”, saying Australians had a stronger affinity with labour rights and the concept of a ‘fair go’ at work than Americans.
Labor Senator and former TWU national secretary Tony Sheldon says that extending employee definitions “is not without merit, but it’s last century”, and the issue of rights for contract workers needs to be dealt with more urgently.
Most gig workers including freelancers on Airtasker who serve clients around the world are among gig workers who could not reasonably argue they should be treated as employees. But Professor Stewart says they should still be able to argue for some protections as workers. He warned that an emerging, and potentially bigger concern, was the rapid growth of online job platforms in the community service sector.
The federal government, through the Department of Health and the National Disability Insurance Scheme, has promoted online platforms including Mable which faced criticism in the aged care royal commission for not providing enough adequately trained workers to facilities including Newmarch House in Sydney at the height of the pandemic.
Mable chief executive officer and co-founder Peter Scutt says it connects independent contract workers with people seeking support services, but does not set prices, schedules or conditions. He says his platform provides online safety training and arranges insurance cover on behalf of workers who pay the premiums. The platform checks references and qualifications and vets police and working with children checks. Scutt says complaints from Anglicare related to early “teething problems”.
“We take our responsibilities really seriously, we are very thorough in our vetting,” Scutt says.
“Once people are approved on the platform the people that are looking to engage the services contact the workers and choose who is right for them.
“The parties when they come to Mable engage directly and agree all aspects of their service arrangement with each other.”
Australian Services Union NSW/ACT branch secretary Natalie Lang says thousands of registered disability service providers that employed skilled and experienced workers were overlooked at the height of the coronavirus pandemic when the federal government promoted 15 gig platform providers including Mable.
“The implication of that is to drive down working conditions in an essential service industry which is a really big problem for the quality of service,” she said.
Brett Holmes, the general secretary of the NSW Nurses and Midwives Association, says the online job-matching platforms did preliminary checks on the qualifications of people using their platform.
“They take no responsibility for their vetting of staff and there are no employment responsibilities undertaken by these platforms,” he says. “A preliminary scan confirming their registration and whether they have a police record is about as far as these organisations go in determining the suitability of the nurse for the client and there is no responsibility around work health and safety.
“All those responsibilities are transferred to the contracting nurse.”
Andrew Richardson is the chief executive officer of Aruma, one of Australia’s largest registered disability service providers. He says that while the NDIS was a great social reform and some gig platforms had a good business model, he was concerned that the federal government and the National Disability Insurance Agency was trying to drive down labour costs by “applying low-cost business models in inappropriate settings, at the expense of service quality and employee and client wellbeing”.
“It’s false economy to say cheapest is always best,” he says. “The federal government needs to set a playing field that works and they aren’t doing a very good job of that. We won’t have a workforce if it’s all piece rate.”
A well-trained workforce was needed to safely support people with disabilities and “ultimately you need a workforce willing to work, be trained and make disability support their career”.
Minister for Aged Care and Senior Australians, Richard Colbeck says he considered a range of options and determined the Mable platform “offered a scalable, national platform to provide initial workforce surge to Commonwealth funded aged care providers, particularly during the height of the second wave of COVID-19 infections across Victoria”.
“The department is continuing to refine and explore additional workforce supports to complement existing arrangements,” he says. “The Commonwealth contractual arrangement with Mable ceased on 30 September 2020.”
Anna Patty is a Senior Writer for The Sydney Morning Herald with a focus on higher education. She is a former Workplace Editor, Education Editor, State Political Reporter and Health Reporter.
Employment agency found in contempt of paying gig workers
After months of suffering in legal limbo, some self employed and independent contractors may receive a lifeline by Christmas.
The Department of Employment, Training and Rehabilitation has three weeks to release Pandemic Unemployment Assistance jobless benefits to more than 9,000 people the department had previously paid and later froze, a Washoe County judge ruled Thursday.
Judge Barry Breslow held the department in contempt for failing to follow his July 22 order that the agency resume paying benefits to those workers by July 28 “or shortly thereafter.” He fined the state $1,000 Thursday and warned of further punishment if the department fails by Dec. 24 to release 9,481 “start-stop” claims it froze due to concerns of potential eligibility in other benefits programs.
“Once started, payments may not be stopped,” said Breslow, doubling down on his mandate.
Andrew Stettner, senior fellow at The Century Foundation, said a ruling of this kind is a first.
“Jobless workers have a right to timely payment of jobless benefits and due process if a question is raised,” he said. “It is not just Nevada, but across the country, where workers are having benefits stopped. I have never heard of a judge issuing a fine like this, but there is no doubt it is a travesty.”
Las Vegan Dave Cherkis is still waiting to receive his unemployment benefits, after filing under the PUA program in May. The self-employed photographer said DETR should have received a heftier fine to ensure PUA filers get their money.
“It’s like putting a Band-Aid on a compound fracture—it doesn’t work,” he said. “If you’re going to fine them—fine them.”
Bradford McEwen, an independent contractor who had PUA payments frozen after receiving 21 weeks of compensation, said he was disappointed with the ruling.
“I really thought the ruling would be much more harsh towards DETR,” he said. Everybody who had their payment stopped should have received $1,000 each from DETR instead, he said.
“We should be paid for the hours, and hours, and hours on the phone. People would never have had to make any of those calls to the DETR hotlines if they just answered and picked up the phone calls to address our issues,” he said.
Waiting since May
Breslow’s order was part of a lawsuit filed in May on behalf of independent contractors and self employed workers seeking immediate payment of pending PUA claims. The July 22 order said DETR cannot stop paying claims, with some exceptions for failing to meet certain eligibility benchmarks and suspected fraud, until a worker has had a hearing or some other means of protest.
At the conclusion of the eight-hour hearing, which saw testimony from three PUA claimants, Employment Security Division employees and DETR Director Elisa Cafferata, Breslow praised state employees for their work under trying circumstances. He also conceded his previous July deadline was too short a timeframe for DETR to reasonably identify and release claims under his order.
“But it’s been four-to-five months. These people need to be paid,” he added.
Cafferata said the department was doing everything it could to comply with the order. DETR struggled to square Breslow’s order with guidance from the Department of Labor saying workers are eligible for PUA only if they are first determined ineligible for other benefits programs, like traditional unemployment insurance, state attorney Robert Whitney argued.
The guidance is clear, and DETR could lose federal funding by failing to obey, said one of the state’s witnesses, Brian Bracken, a former department employee who temporarily returned to help adjudicate claims.
‘On the fence’
Breslow contended he had already considered the labor department’s guidance in his original order, citing U.S. Supreme Court precedence as the overriding foundation of his decision.
Plaintiff attorneys argued the state had an obligation to follow the order and failed to do so. If DETR took issue with the ruling, it should’ve filed an appeal or asked for a stay, said Mark Thierman, of Reno-based Thierman Buck Law Firm.
“They didn’t take your order seriously,” he told the judge.
Breslow said he was “on the fence” but ultimately declined to extend the order to PUA workers whose claims were frozen due to concerns of fraud.
He scheduled a hearing on Dec. 31 to determine whether the department followed through on its Dec. 24 deadline.
As of Nov. 21, 74,049 Nevadans are continuing to receive jobless pay through the PUA program, and 649,615 new claims have been filed since the program rolled out in May.
Contact Mike Shoro at firstname.lastname@example.org or 702-387-5290. Follow @mike_shoro on Twitter. Review-Journal staff writers Subrina Hudson and Jonathan Ng contributed to this report.
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