What is in Budget 2021 for Coquitlam for Business?
Establishing a $15 Federal Minimum Wage
Canada’s prosperity and stability depend on every Canadian having a fair chance to join the middle class. Yet, some Canadians struggle to do so while supporting families in part-time, temporary, and low-wage jobs—often working several jobs to make ends meet. The COVID-19 pandemic has also increased focus on the essential work done by a large proportion of minimum wage-earning workers. To support low-wage workers in the federally regulated private sector:
- The Government of Canada is announcing its intention to introduce legislation that will establish a federal minimum wage of $15 per hour, rising with inflation, with provisions to ensure that where provincial or territorial minimum wages are higher, that wage will prevail. That will directly benefit over 26,000 workers who currently make less than $15 per hour in the federally regulated private sector.
Enhancing the Canada Workers Benefit
The Canada Workers Benefit was designed to reduce barriers to employment for low-income workers by providing them with a sizable tax refund—up to almost $1,400 for single individuals without children and $2,400 for families—delivered through the tax system. But currently, the threshold of eligibility leaves many of Canada’s low-wage workers out of the program; a person earning minimum wage and working full-time can still live in poverty but receive nothing from the Canada Workers Benefit.
In Canada, hard-working people with full-time, low-wage jobs should be able to make ends meet for themselves and their families. To support low-wage workers who have been most negatively affected by the pandemic and make our workforce stronger:
- Budget 2021 proposes to expand the Canada Workers Benefit to support about 1 million additional Canadians in low-wage jobs, helping them return to work and increasing benefits for Canada’s most vulnerable.
The government also recognizes that benefits targeted based on family income can deter secondary earners in couples from going back to work. More often than not, this impacts women. An inclusive recovery is a feminist recovery, and the Canadian economy cannot be competitive when everyone does not have the chance to succeed. To further boost workforce participation by reducing these barriers:
Budget 2021 proposes to allow secondary earners to exclude up to $14,000 of their working income when income-testing the Canada Workers Benefit.
Better Labour Protection for Gig Workers
As demand for gig work (short-term contracts with firms or individuals to complete specific and often one-off tasks) increases with the rise in new digital platforms, more and more Canadians rely on jobs that do not come with the same level of job protection as other employees in the economy. The COVID-19 pandemic has exposed the vulnerability of these workers to income shocks when demand for their services suddenly drops. For this reason:
- Budget 2021 reiterates the government’s commitment to making legislative changes to improve labour protections for gig workers, including those who work through digital platforms. Following the conclusion of consultations recently launched on this topic by the Minister of Labour, the government will bring forward amendments to the Canada Labour Code to make these new, modernized protections a reality.
Enhancing Protections for Contract Workers in the Air Transportation Sector
The pandemic has highlighted the importance of protecting employees, particularly those who provide essential services to Canadians. Many employees in the air transportation sector have continued to work through the pandemic, deep cleaning aircraft, safely handling baggage, and performing the other critical services that have allowed necessary air travel to continue safely.
Many of the services provided by these employees are contracted out by airports and air carriers. When these contracts change hands, workers are at risk of earning less money for the same job.
- To better protect these employees, the government announces its intention to introduce legislation that would extend equal remuneration protection to more employees in the air transportation sector. That would ensure that, when a service contract changes hands, affected employees are not paid less if they are laid off and rehired to do the same work they were doing before.
Support for Personal Support Workers
The 2020 Fall Economic Statement announced that, to support personal support workers, homecare workers and essential workers involved in senior care, the government would work with labour and healthcare unions, among others, to seek solutions to improve retention, recruitment, and retirement savings options for low and modest-income workers, particularly those without existing workplace pension coverage. To follow through on this commitment:
- Budget 2021 proposes to provide funding of $27.6 million over three years for my65+, a Group Tax-Free Savings Account offered by the Service Employees International Union Healthcare.
Taking Action to Address Predatory Lending
Many lower and modest-income Canadians rely on high-interest short-term loans to make ends meet, such as paying for everyday living expenses, or for unanticipated emergencies. This leaves some Canadians living in a cycle of debt.
- To help fight predatory lending, the Government of Canada will launch a consultation on lowering the criminal rate of interest in the Criminal Code of Canada applicable to, among other things, installment loans offered by payday lenders.
To read the Budget 2021 speech or to review the budget documents, please visit https://www.canada.ca/en/department-finance/services/publications/federal-budget.html