'Little bit of virtue signaling': NDP Labour Critic slams new employment legislation citing Dutchies as example

Law makers and an employment lawyer say they are disappointed with Ontario’s new employment legislation Working for Workers Five Act.

The latest version of the act received Royal Assent in October. The province said the latest changes will support frontline workers, encourage more women to start a career in the trades and crack down on bad actor employers.

In a news release, the government said they have increased penalties for employers who violate the Employment Standards Act in an effort to protect workers.

“In my opinion, the government's not doing enough about this, they're doing a little bit of virtue signaling,” said Ontario NDP Labour Critic Jamie West.

West is upset over the lack of attention to wage theft and the government’s attempt to protect workers.

According to the new law, the maximum fine for wage theft has doubled from $50,000 to $100,000 dollars.

According to West, this will do very little.

“I couldn't find a record of the member using the maximum of the $50,000 in the first place,” said West, adding, “If you don't implement the maximum fine, the lower one, then double it, triple it, add seven zeroes, you're sort of wasting everyone's time and pretending you're standing up for workers.”

West’s interest in wage theft was sparked after hearing Waterloo-based employment lawyer Joanna Mullen speak to lawmakers about Dutchies Fresh Market.

“The entire purpose of going down and speaking to the standing committee was to let them know what has been going on in Waterloo Region, particularly with this employer, Dutchies Fresh Market,” Mullen said about speaking at the Oct. 8th meeting.

Despite Mullen’s presentation, and interest and outrage from all political parties, no further action was taken.

“Certainly there is some disappointment in the fact that our recommendations were not incorporated,” Mullen said.

Mullen provided MPP’s with a list of recommendations that could help protect workers. The recommendations included businesses posting a $25,000 security that goes towards paying victims of wage theft.

She also recommends publicly posting employers who are found guilty of wage theft, similar to how municipalities list health code violations for restaurants.

“If there is an employer engaging in wage theft, the public should be aware of it and should be able to make a decision about whether or not they want to support this business,” said Mullen.

She also put forward an idea to strip businesses of their licenses if other measures to pay their employees fail.

“Basically, say you can't continue to operate a business until you pay these wages.”

According to MPP West, public awareness is a valuable tool.

“Sadly, the first part of it is going to be public pressure, but most people aren't aware this is happening … I think that there has to be a little bit of name and shame in order to get the government to do what should be happening,” said West.

Dutchies’ Waterloo location remains open.

According to Mullen Dutchies and its business director are going to trial for Employment Standards violations on Dec. 17th.

“If you want more information about how to watch the proceedings, and I think it's important that the public participate by observing, you can contact the provincial offenses court to get information about how to observe or you're welcome to contact us at Waterloo Region Community Legal Services, and we can share that information with you as well,” Mullen said.

Ministry responds

In a statement, Michel Figueredo, press secretary to Ontario Minister of Labour, Immigration, Training and Skills Development David Piccini, said, "“Under Premier Ford’s leadership, our government has made significant strides in strengthening enforcement and introducing tougher penalties for employer violations under the Employment Standards Act (ESA) and Employment Protection for Foreign Nationals Act (EPFNA). Most recently, Bill 190, the Working for Workers Five Act, made an amendment to increase the maximum fine for an individual convicted of contravening the Employment Standards Act from $50,000 to $100,000. Employment standards officers conduct proactive inspections across Ontario to ensure compliance with the law.

 

Additionally, the ministry has improved overall enforcement tools and increased fines for those who contravene the Employment Standards Act and Employment Protection for Foreign Nationals Act, including:

• Increasing the administrative penalty for repeat offenders who have contravened the same provision of the Employment Standards Act three or more times within a three-year period from $1,000 to $5,000. 
• Establishing the highest maximum fines in Canada for persons who are convicted of taking or retaining a foreign national’s passport or work permit under Employment Protection for Foreign Nationals Act ($500,000 for individuals, $1,000,000 for corporations).
• Increasing the administrative penalty for taking or retaining a foreign national’s passport or work permit, to begin at $100,000 for the first contravention, and increasing for the second and third or subsequent contraventions within a three-year period."