Following the introduction of Bill 85: The Saskatchewan Employment Act, the Saskatchewan Union of Nurses (SUN) commissioned Dr. David Doorey, from York University to provide an analysis of the proposed legislation. The House amendments introduced in May of 2013 are included in this review.
Saskatchewan’s Bill 85: A Rebellion Without a Cause
Professor David J. Doorey, York University
Executive Summary
Introduction
A government undertaking substantial labour law reforms should clearly set out its policy objectives in concrete terms, engage in meaningful consultation to ensure balance and address the concerns of stakeholders, and support reform proposals with careful research. By this standard, the contents of Bill 85 and the process by which they were arrived at leave much to be desired. There was no rigorous or independent study of the possible impacts of the reforms on workers, employers, unions, and the broader industrial relations system. There was no attempt by the government to develop a package of reforms that would be considered fair and balanced.
The contempt for collective bargaining embodied in Bill 85 is strangely at odds with the major challenge facing Saskatchewan: creating stable, well-paying jobs with benefits that can attract and retain the large number of workers required to meet the province’s labour needs. In this context, weakening employees’ individual and collective rights by undermining collective bargaining and eroding statutory protections is counter- productive. Unfortunately, this appears to be the primary aim, and likely effect, of the majority of the reforms contained in the new legal regime.
This review of Bill 85 examines the stated aims and likely outcomes of the new Saskatchewan Employment Act in light of current employment law and industrial relations scholarship, and the available empirical evidence. It finds a confusing and ill- considered overhaul of the legal regime governing work in Saskatchewan that promises greater conflict, instability, and costs, and that delivers few benefits from either a legal or a public policy perspective.
One-Sided Labour Law Reform: What Does Bill 85 Seek to Accomplish?
Laws governing work and employment should help to produce decent, safe jobs and a fair distribution of a society’s wealth among its citizens as an important condition for a vibrant and healthy democratic community. This has historically been accomplished in two ways. First, through the establishment and enforcement of a basic legal floor of minimum conditions of work; and secondly, through laws and regulations that facilitate and regulate collective bargaining between employers and employees, and govern the conflicts that arise between them so as to minimize their disruptive and destructive potential.
Both history and employment law scholarship teach us that one-sided and haphazard labour law reform driven by ideology rather than evidence is disruptive and unsustainable. It is easy, and tempting, for a majority government to impose an entirely new vision of work law on citizens and industrial relations actors – one that will reward its most ardent supporters. But making such a model function, and sustaining it over the longer term, is considerably more difficult. If the process and substance of the law are obviously one-sided, the goodwill and legitimacy that are such important components of the industrial relations and employment law systems are endangered: conflict escalates, the willingness to compromise fades, and short-term resistance overwhelms the potential for actors to work towards longer term, cooperative solutions.
Rather than a balanced and evidence-based public policy initiative to modernize and simplify the laws of work, Bill 85 is quite clearly an ideologically-driven legislative move to accomplish the following:
• Limit access to collective bargaining by making it more difficult for workers to organize unions and obtain certification;
• Weaken or undermine existing collective bargaining relationships by: encouraging smaller and more fragmented bargaining units; lengthening or removing ‘open periods’ so that unions are under constant threat of decertification and raiding; imposing greater administrative burdens on unions; imposing new limitations on the right to legally withdraw labour services; introducing new mechanisms for employers and factions of workers to challenge union bargaining committees with “final offer” votes.
• Give employers greater discretion to control the workplace and their employees by making employment standards more malleable and reducing the oversight role of the state.
The government has described its intent as one of “modernizing” and “simplifying” Saskatchewan’s labour legislation. This review finds little evidence that it accomplishes either of these goals in any meaningful sense. In key respects, for example by eroding fixed labour standards and by encouraging greater fragmentation, conflict, and instability in the industrial relations environment, Bill 85 looks to bygone eras rather than to the future. The vagueness of the Bill means that rather than simplifying the laws of work in Saskatchewan, Bill 85 will introduce a much greater degree of legal uncertainty into labour relations, with the conflict, distrust, instability, and increased costs for all concerned that this breeds. The nature of the Bill guarantees years of expensive and disruptive litigation, at both the labour board and in constitutional cases.
1. Labour Relations
“Confidential Employee” Exemption
Bill 85 introduces a peculiar new definition of “confidential employees” whose implications remain unclear. It seems likely that the law is intended to extend the number of jobs and employees that may be excluded from the scope of collective bargaining by legal definition. Depending on how regulations clarify the law’s intent, and on the interpretation given to its provisions, a good number of Saskatchewan employees may be stripped of their right to collective bargaining and find that their collective agreement entitlements have been torn up overnight. In addition to the costly litigation that will be required to get clarity on the its implications, this measure will raise important charter issues for employees whose effective exercise of their rights will have been made impossible by legislative fiat.
Fragmentation: “Supervisory Employees” and “Partial Raiding”
Bill 85 defines a new category of “supervisory employee” that may have far-reaching implications for some employees’ access to collective bargaining, for the structure of bargaining units, and for the stability of labour relations. Section 6-11 orders the labour board to carve out “supervisory employees” from all others unless the union and employer agree to maintain the status quo. One purpose of this change may be to effectively exclude the new category of employees from collective bargaining altogether by making it much more difficult for them to maintain or re-acquire union representation.
The Bill encourages the fragmentation of bargaining units by making provisions under Section 6-10 encouraging unions to apply to carve out portions of existing units consistent with the new class of “supervisory” employees. New unions or units representing these employees may proliferate, leading to more collective agreements, more complicated and costly bargaining and agreement administration, and a greater likelihood of disruptive industrial conflict. Indeed, by intentionally promoting bargaining unit fragmentation, the legislation moves in a direction opposite to that which most experts agree reduces the costs and conflicts involved in collective bargaining.
Instability and Mistrust: Open Periods and Final Offer Votes
Bill 85 changes the rules surrounding the “open periods” during which applications to displace (raid) or decertify a union can be entertained. Section 6-10 doubles the time period during which applications to raid can be made, and Section 6-17 all but eliminates the “open period” restriction on decertification applications. The result may well be a near-constant campaigning mode on the part of unions, workers, and employers, with added distraction and conflict, and a corrosion of relationships that promote long-term cooperation and productivity.
A higher frequency of representation ballots can be expected, and without substantial new funding to administer the Act, greater delays in conducting votes will result. Together with the government’s decision in Bill 6 to break with the traditional Canadian “quick vote” model, the apparent intent of Bill 85 is not only to encourage raiding and decertification campaigns, but also to give employers more time to use their superior access to, and power over, workers to lobby against collective bargaining and attempt to defeat new certifications.
Section 6-35 permits an employer, or a group of workers representing at least 45 percent of the bargaining unit (or 100 employees, whichever is less) to request a vote on the employer’s “last offer” in bargaining. The “final offer” provisions promise to inject greater hostility and mistrust into the negotiation process, and similar laws have been linked empirically to higher strike frequency. The new provisions undermine the traditional role of elected bargaining committees and will have major and unpredictable consequences for bargaining strategies and relationships. In this case as in others, the likely result will be higher levels of conflict, uncertainty, and instability in Saskatchewan’s industrial relations environment.
2. Employment Standards
It is well established that employees without access to union representation and collective bargaining are much less likely to be able to monitor employers’ adherence to employment standards or to enforce their statutory rights. Yet, basic employment standards remain the main line of legal protection for employees making individual contractual bargains with employers. In these circumstances, the clarity of the rules is key for encouraging employers to abide by, and employees to insist upon, minimum standards of work. With few exceptions, Bill 85 does not simplify the relevant law but actually makes it more complex and ambiguous, undermining basic employment standards.
The most obvious case is Bill 85’s provisions around overtime pay. In the place of a simple rule – overtime payment will be made when an employee works more than the prescribed number of daily or weekly hours – we are now faced with a complex layer of exceptions, exemptions, waivers, and special arrangements that erode the basic standard and expand the opportunities available to employers to avoid paying overtime.
Bill 85 gives employers greater discretion to manage the workplace in other areas. It drops the longstanding direction to employers to grant two consecutive days off, ending the longstanding legal protection of a ‘weekend’ period to spend with family and friends. The bill eliminates the requirement that employees’ wishes be taken into account in substituting another day for a public holiday. It also gives employers the right to deny employees a meal break based on “unexpected or unusual” circumstances, or if the employer simply deems it “not reasonable” for an employee to have a meal break.
Viewed in isolation, each of these changes can be considered relatively minor tinkering with the system, yet the pattern overall is clearly a move towards greater employer control over work, and fewer checks and balances over how employers exercise that discretion.
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Dr. David Doorey is an Associate Professor of Labour and Employment Law at York University. He is Director of Osgoode Hall Law School’s Professional Master of Law program in Labour and Employment Law, and was called to the law Bars of British Columbia and Ontario. He was educated at Osgoode Hall Law School (LL.B., Ph.D.), the London School of Economics and Political Science (LL.M), and the University of Toronto (B.A., M.I.R.). Professor Doorey is Articles Review Editor for the Canadian Labour & Employment Law Journal, and a member of the Canadian Labour Law Casebook Group. He is the recipient of the Morley Gunderson Award for outstanding contribution to Canadian industrial relations, the David Watson Memorial Award for the law journal article making the most significant contribution to legal scholarship, and the Simon
Fodden Award for the Best Law Blog in Canada (The Law of Work).
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