Ford government to give benefits to gig & hospitality workers, but only if re-elected

The Ontario government will move ahead with a plan to give “portable” health and wellness benefits to those working in retail, the gig economy, hospitality and others who move between jobs without coverage, CityNews has learned. However, it is contingent on the government getting re-elected this June.

Labour Minister Monte McNaughton announced on Dec. 9, 2021 that the government was considering such a move. Now he intends to move ahead with the plan, though the details of it won’t be available until after the next provincial election on June 2.

McNaughton is expected to announce later today that the government will form an advisory panel to look at how best to administer the new program.

“We going to move forward with ensuring that millions of workers who currently don’t have health and dental benefits will have those benefits,” McNaughton told CityNews

It will mean more workers could get health, dental, and vision care coverage even if they change jobs, though the labour minister was unable to say how the program would be funded or how much it will cost taxpayers, employers and employees. McNaughton did not say who would be on the advisory panel.

“There will be more to come on that, but certainly we’re going to ensure we have experts that know how to bring benefits forward for part-time workers.”

Asked if employers might take issue with the added cost after a difficult two year pandemic battle, McNaughton contended the benefit package will help businesses attract employees.

“Adding benefits for workers is going to be a competitive advantage. It will allow us to attract more workers to Ontario,” he said.

The advisory panel won’t report back with its recommendations until July, meaning Ontarians won’t know the details of the benefits package or how much it will cost taxpayers when they go to the polls on June 2.

DEVIL IS IN THE DETAILS

Brice Sopher, a courier and vice-president of Gig Workers United, said his organization is still advocating for gig workers to have access to existing statutory benefits, like the Canada Pension Plan.

He said workers are concerned that the proposed portable benefits program could require that workers pay for it and see their wages drop as a result, or have some other trade-off baked in.

“We’re kind of skeptical of why it has to be different,” he said. “I think it’s not going to work without the employment standards. I don’t endorse it at all.”

Sopher said he’s also bothered by the timing of the announcement – with no concrete details to come until after the election – given the dire working conditions many have faced during the pandemic, like COVID-19 infections and lost income.

Jim Stanford, economist and director of the Centre for Future Work in Vancouver, said the “devil is in the details” on the portable benefits ideas, versions of which he noted already exist in some trades like construction.

But he said the idea “must be rejected” if it’s aimed at replacing existing universal benefits like the Canada Pension Plan, employment insurance, workers’ compensation and the Ontario employer health tax. He said the government should focus on “closing loopholes,” making gig companies participate in those programs and pay workers fairly.

“Why is the government moving on this issue right now? Is it to actually make sure that everyone gets health and dental? Or is it because they’re being lobbied hard by Uber and other gig platforms to come up with some halfway measure that allows those businesses to pretend that they’re being fair?” he said. “I’m worried about the latter.”

The Opposition NDP also criticized the Progressive Conservatives for not addressing the benefits gap until after the scheduled election.

“All that was really promised today is that the (Doug) Ford government will do absolutely nothing during their term in office about the millions of Ontarians without decent health benefits,” labour critic Peggy Sattler wrote in a statement.

The Ontario Federation of Labour also raised concerns that the plan would further exclude gig workers from full employment rights. President Patty Coates argued that expanding drug and dental coverage for everyone could help more.

“Where access to health care is falling short it should be improved to ensure all workers have the support they need. The answer to that challenge is the provision of universal dental care and pharmacare for every Ontarian,” she said.