B.C.’s paid sick leave program will add pressure to employers: chamber of commerce

Nov 24, 2021 | 3:50 PM Pete McIntyre

The B.C. government’s new paid sick leave program is raising some red flags for local businesses and non-profits.

The province has announced plans for a minimum of five paid sick leave days a year for workers, paid for by employers, starting Jan. 1, 2022, including for part-time workers.

The Greater Vernon Chamber of Commerce is concerned the program does not strike a sufficient balance between the needs of workers and employers.

“There is no question that employers in both the private and non-profit sectors want to do what is best for their employees as a healthy workforce is critical to success,” said Dan Proulx, the chamber’s general manager. “In fact, many employers already invest significantly in their workforce, including Employer Health Tax, WorksafeBC, vacation pay and extended health benefits.”

Proulx said it’s important to remember that the vast majority of businesses in B.C. are not large corporations.

“Ninety-eight per cent are small businesses. Our concern with the government initiative is that it puts additional pressure on already tight financial margins for employers in the private, non-profit and public sectors. When all of the employee-related costs are combined, the impact is more than 30 per cent above wages. We had hoped the government would embrace a compromise that benefits both employees and employers,” he stated.

Proulx said the chamber will be contacting local MLA Harwinder Sandhu to outline its concerns, and questioning why the government didn’t consider partial reimbursement to employers.

He said chamber directors and members from various sectors participated in a virtual meeting with Labour Minister Harry Bains and Sandhu in October and recommended the government reimburse employers up to $200 a day for permanent paid sick leave, similar to what is currently available for Covid-19 related paid sick leave for up to three days per employee.

“We had even suggested the government cover the cost of permanent paid sick leave for a fix period of time so businesses and non-profits could adjust their financial plans to reflect this new cost,” said Proulx.

Proulx added businesses and non-profits are committed to a healthy workforce but significant challenges arise from the cumulative impact of government taxation, employee benefits and the rising cost of living for utilities, rent, fuel and food.

“With fixed expenses climbing, employers may have to make tough decisions regarding equipment purchases, hiring new staff or providing raises. If employers can’t cut expenses elsewhere then this will create inflationary pressures as those costs will have to be passed on to consumers,” Proulx remarked.

In making the announcement of a five day program today, Labour Minister Harry Bains noted the initiative has had a lot of support, saying 60,000 workers and employers responded to a public survey to have their say in a paid sick leave program, and after reviewing all the responses, he believes the province has created a program that fits the needs of everyone.

“Not surprisingly, some had called for three days or less, while others had asked for 10 days or more,” said Bains.

“Five days is a sustainable solution given the challenges faced by many sectors.”