Observation (CEACR) - adopted 2018, published 108th ILC session (2019)

Employment Policy Convention, 1964 (No. 122) - Canada (Ratification: 1966)

The Committee notes the observations made by the Canadian Labour Congress (CLC), received on 31 August 2017 and later transmitted with the Government’s report together with the observations of the Quebec Employers’ Council (CPQ).

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. In its previous comments, the Committee requested the Government to indicate how, pursuant to Article 2 of the Convention, it keeps under review the measures and policies adopted according to the results achieved in pursuit of the objectives of the Convention specified in Article 1. The Committee notes the detailed information provided by the Government concerning the labour market measures adopted and envisaged at the federal and provincial levels. The Government indicates that over 2 billion Canadian dollars (CAD) are invested each year in the Labour Market Development Agreements (LMDAs) with provinces and territories to support the unemployed with employment assistance and training. Under the LMDAs, employment benefits enable current and former Employment Insurance (EI) claimants to gain skills and work experience through a combination of interventions, such as training and wage subsidies. The Government adds that the EI Act was amended in 2016 and 2017 with a view to eliminating the higher EI eligibility requirements that restricted the access for new entrants and re-entrants to the labour market, extending the definition of former claimants from three to five years, and broadening worker eligibility to allow under-represented groups to access EI-funded skills training and employment support under the LMDAs. However, the CLC points out that the Government did not invest in significantly wider access to EI regular benefits, therefore workers may find themselves with access to EI-funded training opportunities, but without income support provided by eligibility for EI regular benefits. Furthermore, based on the outputs of the consultations held in 2016 with the provinces, territories and other stakeholders, the Government announced in Budget 2017 reforms to the LMDAs by introducing the new Workforce Development Agreements (WDAs), which complements the LMDAs and consolidates the Canada Job Fund Agreements, the Labour Market Agreements for Persons with Disabilities and the Targeted Initiative for Older Workers (TIOW). Under the WDAs, additional investment is provided for development and delivery of programmes and services that help Canadians get training, develop their skills and gain work experience. The WDAs offer flexibility to respond to the diverse employment and skills training needs of Canadians, including those with disabilities, those further removed from the labour market and employers. The Committee also notes that in its observations, the CPQ welcomes the Innovation and Competences Plan included in Budget 2017 with the objectives of creating a higher number of good and well-paid jobs and growing the middle class. In addition, in Budget 2018 measures are envisaged to increase the access to the Working Income Tax Benefit (WITB), which is a refundable tax credit that supplements the earnings of low income workers. By letting low-income workers take home more money while they work, the benefit encourages more people to join and remain in the workforce. Finally, the Committee notes the concern raised by CLC about the lack of an active policy to promote full, productive and freely chosen employment, and articulated and integrated into socio-economic decision-making, as required by Article 1 of the Convention. The CLC indicates that the aims set out in Article 2 are difficult to coherently implement through measurable objectives that could lead to concrete reporting for the evaluation of programmes. With regards to the employment trends, according to the Labour Force Survey of Statistics Canada, seasonally adjusted employment increased from 17,991,100 in June 2016 to 18,628,000 in June 2018, and the unemployment rate decreased from 6.8 per cent to 6 per cent during the same period. Nevertheless, the CLC points out that job quality has declined and part-time employment continues to represent a significant and growing share of the job market. The CLC adds that young workers, women, indigenous people, newcomers to Canada and workers with disabilities are more likely to be working in low-wage jobs with unpredictable schedules, no benefits or sick days, and low job security. The Committee requests the Government to continue providing up-to-date information on the measures adopted or envisaged to achieve the objectives of the Convention and, in particular, on how these have helped the beneficiaries obtain full, productive and sustainable employment. In light of the concerns expressed by the CLC, the Committee reiterates its request that the Government indicate the manner in which active labour market measures are kept under review within the framework of an overall coordinated economic and social policy. It also requests the Government to provide up-to-date information, including statistical data disaggregated by sex, age and economic sector, on the current situation and trends regarding the active population, employment, unemployment and underemployment.

Article 3. Participation of the social partners in the formulation and implementation of policies. In reply to the Committee’s previous comments of 2014, the Government indicates that under the Forum of Labour Market Ministers (FLMM), broad-based consultations on Labour Market Transfer Agreements were held in 2016 with experts, employers, workers and service providers. The Committee notes that consultations with workers’ and employers’ and other stakeholders on different employment measures are envisaged in Budget 2018. The Committee notes, however, that the CLC highlights deficiencies with respect to the application of this Article of the Convention in relation to consultations with workers’ organizations. It adds that despite the fact that workers’ organizations are informed about employment policies, their views are not taken into account. The CLC regrets the lack of an institutionalized process for taking into account the views of the social partners with respect to the development and implementation of employment policies. In view of the concerns raised by the CLC, the Committee reiterates its request that the Government provide detailed information on the frequency, content and outcomes of effective consultations held with the social partners on the matters covered by the Convention.