Child Care Algoma is proposing a series of cuts that the non-profit corporation says is necessary to stay afloat once Bill 148 — known as the fair workplaces, better jobs act — comes into effect April 1.
In a memorandum to Child Care Algoma employees dated March 22, executive director Anne DeLuco says that employees with ‘appropriate education credentials’ and ‘fulfill a specific job classification’ will be entitled to wage increases due to the new provincial legislation.
“The consequence of meeting this regulation has placed Child Care Algoma in a challenging financial predicament,” reads the internal memo. “For this year alone we must try to recover $300K.”
Here are some of the claw backs proposed by Child Care Algoma:
- Removal of 15 minute break, resulting in reduction of hours for some staff workers starting April 16, 2018, at an estimated savings of $75,000
- Child Care Algoma cuts its contribution to group benefit plan, effective July 2018, at an estimated savings of $75,000
- Employer contribution to group RRSP will be cut in half, at an estimated savings of $45,000
- Sick days frozen until further notice. Memo adds that removing paid sick days altogether would save Child Care Algoma $45,000
- Closure of program(s)
- Reduction in pay by $1 per hour, at an estimated savings of $110,000
“Unfortunately this comes with hardship and these difficult decisions have to be made,” reads the memo. “We have approached this trying to be as transparent as possible and it is for this reason that I provide this notice as to what is occurring as we move forward.”
Child Care Algoma’s executive director declined to comment on any specifics of the proposed cuts.
An information night for employees is set for March 28, according to the memo.
Sault Ste. Marie Chamber of Commerce CEO Rory Ring says that Ontario could witness some businesses and organizations scaling back, whether it’s reduced store hours or reduced shifts for part-time and seasonal workers.
“It’s really impacting the way businesses have to manage their human resources,” said Ring. “From even just an administrative perspective, it puts a significant burden on the employer to ensure that it is meeting the requirements that are put out through Bill 148.”
“It’s the accumulative effect of having to deal with red tape, now dealing with the rules and regulations around labour, dealing with the higher cost of labour, dealing with the higher cost of electricity, dealing with the cost burdens associated with cap and trade. The list just goes on.”
Nusrate Aziz, who’s an assistant professor of finance and economics at Algoma University, says that the reaction to wage increases as a result of the new legislation will continue to evolve.
“The reaction comes in different ways,” Aziz said. “It depends on how are they planning to reply to new legislation which may affect them in terms of their high costs.”
“Less hiring happens, less work hours and then benefit cuts, and of course production cuts as well.”