Mr. Speaker, I am pleased to rise today to speak to Bill C-45, the jobs and growth act 2012.
I will be sharing my time with my colleague from the riding of Fort McMurray—Athabasca.
The bill is a continuation of our government's steady focus on the Canadian economy. It is what Canadians want and it is what they expect.
In March the Minister of Finance introduced our government's pragmatic and prudent vision for the future of Canadians, one that looked forward to not only the next few years, but also the next generation.
Since 2006, our government has worked to build a strong economic foundation for Canadians. While the effects of the economic downturn of 2008 were felt in homes and businesses across the country, it was through the steady, constant leadership of the Prime Minister and the Minister of Finance, as well as our Conservative government, that ensured the Canadian economy emerged from the recession well ahead of every major developed economy in the world.
We have delivered for Canadians. Our strong record speaks for itself: the creation of 820,000 net new jobs since July 2009; a 3.9% increase in year-over-year growth in manufacturing output; a reduction of personal income taxes and cuts to the GST; income splitting for seniors' pensions; the creation of a landmark tax-free savings account; and lower taxes on Canadian businesses, with Canada having the lowest tax rate on new business investment among major advanced economies.
Our banking system is regarded as the most stable in the world. The OECD and the IMF predict Canada's economy to be one of the international leaders over the next coming years.
Therefore, when we sift through the partisan rhetoric and the inaccurate facts and figures thrown about by my opposition colleagues, our government's record on the economy is laid to bare.
Ours is a low tax-plan that would help create jobs, while the NDP pushes high taxes that would kill jobs and growth.
Ours is a plan that would promote clean energy and enhance the neutrality of the tax system, while the NDP's massive carbon tax would not only take $21 billion out of the pockets of hard-working Canadians, it would also cripple Canadian businesses and kill Canadian jobs.
We are also extending the popular hiring credit for small business, which benefited nearly 534,000 employers last year. In my riding of Simcoe—Grey, business owners from Alliston to Collingwood spoke to me about how this measure provided needed relief to small businesses by helping defray the costs of hiring new workers and allowing them to take advantage of emerging opportunities.
My first job was as a small business owner. I ran a moving company to get through university. I took my inspiration and direction from my father, a construction company owner: hard work, dedication to employees and a commitment to service.
Like my father, Simcoe—Grey small business owners, like Fred Hamilton in Glen Huron, do not want handouts or government telling them how they should be running their businesses. All they want is a fair shot, an equal playing field and a government that gets out of their way, or at least works with them as opposed to against them.
Small businesses are the backbone of the Canadian economy. As Winston Churchill wisely said:
This is no country of vast spaces and simple forms of mass production...it is by the many thousands of small individual enterprises and activities that the margin by which alone we can maintain ourselves has been procured.
The hiring credit for small businesses does just that. It supports all those small businesses, like the Home Hardware run by Todd Young in Wasaga Beach in my riding. A huge benefit of this program is the tax credit is actually automatically applied. Business owners need not waste their time filling in forms. We have cut red tape as well as deliver a tangible benefit for Canadian businesses.
I am now pleased to speak about the amendments our government proposes to part III of the Canada Labour Code under this legislation.
As members will see, the proposed amendments will not represent significant changes to either employer or employee rights or obligations under part III of Canada's Labour Code. These changes will be part of an overall effort to reduce red tape, cut the cost of government and make our programs and services more responsive to the needs of Canadians.
Part III of Canada's Labour Code establishes minimum working conditions for employees in federally-regulated industries, such as banking, telecommunications and cross-border transportation.
Part III covers hours of work, general holidays, annual vacations and statutory leaves.
Part III also has provisions to help employees recover unpaid wages and get recourse in case they are unjustly dismissed.
The second budget implementation act 2012 contains a number of amendments aimed at making it easier for employers to comply with part III requirements. These proposed amendments will streamline processes, reduce the costs of administering the Labour Code and facilitate the resolution of complaints. We will all benefit from this: workers, employers, and taxpayers.
First, we will be simplifying the calculation for holiday pay for employees from the nine annual paid general holidays provided for in the code. The current method of calculating general holiday pay is highly complex and difficult to apply. Different formulae have to be used, depending upon whether an employee is paid on a monthly, weekly or hourly basis.
In addition, the current eligibility requirements also exclude many employees, for example, part-time workers, from entitlements to holiday pay. The amendments we are proposing will make things simpler so that employers will find it easier to make the necessary calculations for employees' pay and will also make more employees eligible to qualify for these benefits. For regular employees, little will change. General holiday pay will be one-twentieth of total wages, not counting overtime earned in the four week period preceding the week of a general holiday.
For example, Paul, a regular employee working full-time as a manager for a shipping company and earning $1,000 a week would be entitled to $200 in general holiday pay for Thanksgiving.
For employees on commission whose earnings fluctuate, the formula would be one-sixtieth of total wages, not counting overtime, over the preceding 12 weeks. Therefore, Julie, who works as a sales representative on commission and earns a total of $12,000 of the 12 week period before Thanksgiving, would also be eligible for $200 in general holiday pay.
The proposed amendments will also simplify eligibility of requirements for general holiday pay.
It will still be necessary to have 30 days of employment with the employer, but employees will no longer be required to have earned wages for 15 of the 30 days preceding the holiday. This will be beneficial for part-time employees.
We are setting a clear 30-day deadline for employers to pay any vacation pay owed to an employee once his or her employment ends. This will serve to clarify employers' wage payment obligations under the code.
Currently, any person affected by a payment order or anyone who has been notified that his or her complaint is unfounded can appeal the decision. Appeals are heard and adjudicated by external referees appointed by the minister on a case-by-case basis.
Through these amendments, we are establishing an administrative mechanism to review inspectors' payment orders and their decisions to reject a complaint. The internal review will be conducted by the labour program officials and will confirm, amend or rescind inspectors' decisions. This will create a win-win proposition.
The new administrative review process is intended to lead to a quicker and more cost-effective resolution of complaints, while remaining fair for employers and employees.
As members can see, these proposed changes to part III of the code are mainly administrative in nature. Some of them simply formalize existing policy directives.
I should also mention that these proposed amendments will establish provisions in the Canada Labour Code that are similar to existing provincial legislation.
Finally, we are also proposing amendments to the Merchant Seamen Compensation Act to eliminate the Merchant Seamen Compensation Board. While these amendments will streamline the administration of the act, benefits to affected seamen will not be altered.
The board currently consists of three part-time members who adjudicate claims and determine benefits. The Merchant Seamen Act applies to only five shipping operators. Most of these seamen have eligibility coverage under provincial jurisdiction. In a typical year only one claim is made.
Given the very small workload, there is no good reason for the board to be retained and have yet another unnecessary administrative layer. Therefore, under the current legislation, we will remove the Merchant Seamen Compensation Board and provide that authority to the Minister of Labour.
Many of these changes we have proposed to part III of the Canada Labour Code were recommended by the Federal Labour Standards Review Commission, also known as the Arthurs Commission, in a 2006 report. Overall, these changes will not significantly alter the balance of rights or obligations of employees and employers under the Canada Labour Code. I think both employers and employees will benefit from these amendments, which will reduce the administrative burden and hopefully will result in a quick resolution of complaints.
Bill C-45, the economic action plan 2012, would provide my constituents in Simcoe—Grey a plan for jobs and growth, something that all Canadians want. Our government is responding to that by having an action plan in place.