FEWO Committee Report

ACTIONS TO IMPROVE WOMEN’S ECONOMIC SECURITY AND REMOVE BARRIERS TO ECONOMIC JUSTICE FOR WOMEN IN CANADA

A Supplementary Report submitted by the New Democratic Party of Canada

To the Government of Canada

June 8, 2018

We must act now to address the economic barriers holding women back. As the Progressive Opposition, the NDP has always fought against discrimination against women in all its forms. New Democrats have played a leadership role in promoting women’s rights, including: equal opportunity, income security, equal pay for work of equal value, full political participation, supports for caregivers, and many more.

However, despite Canada’s ratification of the Convention on the Elimination of All Forms of Discrimination against Women, discrimination against women continues to exist in Canada.

WHY IS GENDER EQUALITY SO IMPORTANT FOR CANADA’S ECONOMIC SECURITY?

The International Monetary Fund says that “greater inclusion of women in the economy has been an important source of growth in Canada,” and that “without women, Canada’s economy would have been much smaller.”[1] The McKinsey Global Institute also say that “Narrowing the gender gap in Canada can potentially add $150 billion to GDP in 2026 […] If Canada were to go even further and close the gender gap completely […] Canada could add $420 billion in 2026.”[2]

THE HUMAN COST OF INEQUALITY:

Canada’s childcare costs remain some of the highest in the world, but Canada continues to invest only a fraction of what is needed to solve the childcare crisis. Over 40 years ago, and again in 2016, the Liberals promised pay equity, but still no legislation has been tabled in Parliament, and there is zero funding for the implementation of pay equity in Budget 2018. Other services and programs, including employment insurance and parental leave, do not reflect the modern work experience for women, who generally do not work a 35-hour work week and therefore cannot access EI or even the “use it or lose it” parental leave benefits introduced in the budget. Recognizing that many of these challenges are faced even more prominently by racialized and Indigenous women, it is clear that Budget 2018 fails to address some of the most systemic issues that contribute to gender inequality, as well as inequalities between women in Canada.

These leadership failures have had long-standing effects on women’s economic insecurity. Because of the lack of pay equity legislation, women earned less than their spouses, so when they couldn't find affordable child care it was the woman who dropped out of the workplace. Then there is the unpaid care associated with that, and lost earnings. When she moves back into the workplace, the work tends to be part-time and precarious, without the social safety net and unemployment insurance and pension associated with it. Then, if there is domestic violence, divorce, or separation, she is that much more vulnerable.

FEDERAL GOVERNMENT’S FAILURE TO ACT:

Successive Liberal and Conservative governments have consistently failed to act, ignored recommendations and cut social programs. These cuts have further exacerbated inequality for women. The current Liberal government was elected with high hopes of real change, but women are now facing the disappointing reality of a government that fails to back up feminist rhetoric with actual policies to improve women's equality. While Justin Trudeau has said time and time again that he is a feminist Prime Minister, his government has failed to act on some of the most critical challenges facing women in Canada today.

CHILDCARE CRISIS

A universal childcare program is the #1 action needed for women’s access to the workforce and true gender equality. But it’s missing from Budget 2018. Trudeau’s Budget 2018 says the lack of childcare is a major challenge for most Canadians families, but failed to act. The current system barely serves 1 in 4 children and childcare costs in Canada are among highest in the world.

•  Families need universal, accessible, affordable publically-funded childcare to get women into the workforce
•  Universal childcare would generate jobs, and the fiscal surplus generated would mean no net cost to taxpayers and Early Childhood Educators(ECE) need to be paid better wages.

Committee evidence:

•  Why a publically-funded, national universal childcare program is needed
  •  Childcare is needed to ensure that women can go back to work if they choose
    •  In 2008, due to the Quebec universal childcare program there were 70,000 more Quebec mothers in employment[3]
  •  A lack of access to childcare endangers the economic security of women; when they don’t have access to childcare, they cannot take employment opportunities [4]
  •   Parents can’t afford to pay higher fees, so government investment is needed to ensure that ECE are making a living wage
    •  Early childhood educators are “subsidizing the cost of childcare” with their low wages[5] and do not usually have pensions.
•  The benefits of universal childcare
  •  Universal childcare is the necessary model as it’s less costly and more effective than targeted childcare[6]
  •  Universal childcare generates jobs, and could have no net cost to taxpayers: the Quebec model created a surplus of $900 million for the provincial and federal government[7]
  •  Fee subsidy systems for childcare are ineffective[8] and do not address the issues of shortages of spaces, high fees and quality.[9]
•   Women across Canada need access to universal childcare
  •  Immigrant women need it so they can access  language training needed to enter the workforce[10]
  •  Women with disabilities need it, as they often work entry-level jobs with non-standard hours[11]
  •  Women with children with disabilities are more likely to take time off work and even leave the labour market. Inclusive childcare would help them continue to work while caring for their child.[12]
  •  Childcare is the “number 1 demand” from Inuit women to access  employment and the labour force[13]
  •  Women in post-secondary education need it to continue to go to school[14]
•  Why the federal government should take leadership
  •  Although childcare is a provincial jurisdiction, the federal government has the legal responsibility and international commitment to use its spending power to create a universal childcare system across the country[15]
  •  Canada should meet the international standard of 1% of GDP spent on childcare[16]
  •  Oxfam has called on the government to “sustain and increase funding for childcare so that quality care is accessible to all by 2020”[17]

We believe the Committee’s final recommendations don’t reflect that the majority of expert witnesses[18] urging the federal government to immediately take leadership to create a national, universal childcare system that provides affordable, quality childcare to all families in Canada.

Recommendations:

-That the Government of Canada in Budget 2019 take leadership on creating a national, universal childcare system that provides affordable, quality childcare to all families in Canada.

-That Canada in Budget 2019 reach the international standard of 1% of GDP spent on childcare.

-That in the universal childcare system in Budget 2019, Early Childhood Educators be paid a living wage so that they are retained in the field and so that women working as ECEs have economic security

INFRASTRUCTURE SPENDING

•   Proactive policies are needed to hire women into physical infrastructure projects
•   More focus should be placed on social infrastructure spending rather than just physical infrastructure spending

Committee evidence:

•   What’s wrong with the current infrastructure spending model
  •  Infrastructure spending that benefits traditionally male jobs led Canada to ranki 25^th for gender equality, compared to 1^st[19]
  •  Gender-based analysis (GBA) should be used for all infrastructure spending so that investment does not just create jobs for men[20] and spending should be balanced with provisions for women[21]
  •  Natural resource projects are some of the highest paid employment in the North, but disproportionately employ Inuit men rather than Inuit women[22]
•   How infrastructure spending can benefit women
  •  The construction of the Vancouver Island Highway used equity hiring, and shows how the government could use infrastructure spending benefits women and Indigenous individuals[23]
  •  The Vancouver Island Highway project had the impact of going from 2% of women at the beginning to 20% in the labour force[24]
•   Investing in social infrastructure
  •  Infrastructure spending is generally on physical infrastructure, not on social infrastructure like childcare[25]
  •  Investment in social infrastructure including education and health provides better returns than investment in physical infrastructure[26] Social infrastructure is more labour intensive, and more likely to employ women.[27]

We agree with the Committee’s recommendations on infrastructure spending; the NDP’s report reinforces why proactive hiring policies and investing in social infrastructure are so important for women’s economic security.

PENSIONS

•   Defined-Benefits pensions must be protected to ensure that senior women do not fall into poverty
•   Drop-out provisions in CPP for childrearing and eldercare must be added

Committee evidence:

•   Why women need secure pensions
  •  Women rely disproportionately on defined-benefits for economic security as seniors because of lower lifetime earnings and therefore less private savings.[28]The elimination of defined-benefits will put senior women in danger of living in poverty[29]
  •  Defined benefits pension plans are the gold-standard of pensions, and ensure a secure retirement[30]
•   The gap in CPP coverage for caregiving
  •  There needs to be CPP coverage for primary caregivers for the elderly[31]
  •  There is no reason why a dropout provision for childrearing should not be included in CPP. The lack of a childrearing dropout provision is “penny-pinching.”[32]

The Committee’s report failed to reflect recommendations from the labour movement urging the government to protect Defined-Benefits pensions[33] as they provide a secure retirement future for plan members.[34] Furthermore, many witnesses asked the government to withdraw Bill C-27 as the “bill’s proposals are harmful to seniors’ economic security”.[35] But we agree with the Committee’s recommendations on drop-out provisions in Canada Pension Plan for childrearing and eldercare and are adding extra context on why it is important for women’s economic security.

Recommendation: That the Government of Canada immediately withdraw changes made to Defined Benefits pension plans in Bill C-27.

DOMESTIC VIOLENCE LEAVE

•   We need federal leadership to create paid legislation for domestic violence leave

Committee evidence:

•  The government’s response to help women experiencing domestic violence should be to follow the lead of provinces like Manitoba who have passed legislation to provide domestic violence leave[36]
•  Some unions in Canada have already passed domestic violence leave provisions, but all women should have it regardless of belonging to a union or not.[37]

Last year, the Trudeau government strongly defended their new “three unpaid days” measure, but thanks to the pressure of labour unions and NDP MP Sheri Benson, five days paid leave was funded in Budget2018. Paid leave provisions are a welcome change for this government.

Recommendation: That the Government of Canada immediately introduce legislation to guarantee paid leave for individuals experiencing domestic violence

FUNDING FOR WOMEN’S ORGANIZATIONS AND GROUPS SERVING WOMEN

•   Organizations that support women need access to reliable operational funding and direct investment to deliver vital programs and services

Committee evidence:

•   A growing demand without growing government support
  •  Shelter and support services for women are seeing an increase in the number of women coming to them for help[38]
  •  Women’s organizations are facing stagnant funding, and a trend towards program funding rather than money to run basic programs
  •  Front-line community organizations that provide support services need stable, core, ongoing funding that is adequate to address the actual needs[39]
•   The situation for immigrant women
  •  Funding for immigrant centres must be increased to match growing demand

We agree with the Committee’s recommendation for secure, multi-year operational funding to women’s organizations and front-line community group. However, the Committee report failed to reflect the recommendation we heard from witnesses asking for that federal spending be delivered to service providers, not spending within government.

Recommendation: That Budget 2019 invest in strategies to address violence against women that direct federal spending to service providers, not spending within government.

PAY EQUITY

•   Pay equity legislation is required to address the gender wage gap, where women make approximately 82 cents to every 1 dollar earned by men.
•   The Liberals promised pay equity over 40 years ago, and again in 2016, but still no legislation has been tabled and zero funding in Budget 2018 for the implementation.

Committee evidence:

•   Pay equity legislation is needed immediately
  •  There are no barriers to the government implementing proactive pay equity legislation immediately[40]
  •  The 2004 Federal Pay Equity Task Force recommendations should be implemented[41]
•   Why pay equity is needed
  •  Traditionally low wages for women mean that many senior women are vulnerable to poverty because they have not been able to save enough over their lifetime[42]
  •   Indigenous women earn 36% less than non-indigenous men. Women with disabilities earn 48% less than men without disabilities. Racialized women earn 34% less than non-racialized men.[43]

Recommendation: That the Government of Canada immediately introduce pay equity legislation, following the recommendations of the 2004 Federal Pay Equity Task Force, and that the implementation of this legislation be appropriately funded.

MINIMUM WAGE

•   Women disproportionately work in precarious minimum wage jobs that threaten their immediate economic security, and make them more likely to fall into poverty
•   Indigenous women, immigrant women, racialized women, young women, LGBTQ women and women with disabilities are more likely to work minimum wage

Committee evidence

•  Precarious work continues to be gendered, with women disproportionately taking on precarious work and unpaid internships[44]
•  An increase in the minimum wage would help immigrant women out of poverty, especially women who are providing for large families[45]
•  Many witnesses called for the creation of a $15-per-hour[46] federal minimum wage[47].

Recommendation: That the federal government immediately create a federal minimum wage of $15/hour.

TRANSPORTATION

The Trudeau government should immediately fund rural public transit, as bus companies are withdrawing services and dropping routes. The federal government should follow the example of the BC government who recently launched a new bus service for northern B.C. to replace service cancelled by Greyhound Canada.[48]

•   Women rely disproportionately on public transport because they generally have lower incomes.
•   Transportation affects women’s economic security and their physical safety, when they can’t get to jobs or are placed in dangerous situations.
•   Lack of access to transportation puts Indigenous women at economic disadvantage and risks their safety.

Committee evidence:

•  Women experience issues of affordability, accessibility, and schedules in urban centres, and safety issues in rural and Northern areas when they are getting to jobs.[49]
•  Immigrant women rely on public transportation to access the labour market[50]
•  For Indigenous women, “Transportation is the number one barrier to accessing health care, accessing educational opportunities, and accessing employment.”[51]
•  The Highway of Tears is an example of the safety risks of women not having access to safe transportation.[52]

We agree with the Committee’s recommendation to increase investment in public transportation that will guarantee full access to affordable, frequent and safe transit services for all women.

HOUSING

•   The shortage of affordable housing disproportionately forces women to live in poverty and violence
•   A lack of affordable housing forces many immigrant women into poverty
•   The housing crisis in the North threatens the safety of Inuit women

Committee evidence:

•  A shortage of affordable housing leads to a shortage of shelter spaces because women can’t afford to leave the shelter. And some women become homeless when they leave domestic violence
•  Without affordable housing, women leaving violence are forced to choose between staying with their abuser or moving themselves and their children into poverty[53]
•  The housing crisis in the North causes Inuit women to be forced to stay with abusers and constrains them from having the space to start their own businesses.[54]
•  Immigrant women who are working at minimum wage jobs can’t afford housing, so they are forced to live in poverty.

We feel that the Committee report doesn’t convey the urgency to act to address Canada’s housing crisis.

Recommendation: That the Government of Canada immediately introduces legislation that recognizes housing as a basic human right and that the National Housing Strategy invests, without delay, in affordable housing to address the housing affordability crisis.

CHANGES TO EMPLOYMENT INSURANCE (EI)

•   Many women in precarious or low-paid work do not make enough money or work enough hours to qualify for the EI requirements
•   “Use it or lose it” parental leave for second parent, where the non-birthing parent can take non-transferable parental leave, helps to encourage fathers to share the work of childrearing

Committee evidence:

•  EI requirements based on number of hours worked is discriminatory to women[55]
•  The EI system needs to be reformed to reflect modern work experience because many women are not working the 35-hour standard work week, especially in precarious jobs. A woman working full-time as a cashier for 25hrs/week, a standard, for 6 months will not qualify for EI[56]
•   “Use it or lose it” parental leave for the second parent will help men take on more childrearing responsibilities[57], and will also decrease discrimination against women based on pregnancy because men are more likely to go on leave as well.[58]

The Committee report doesn’t reflect recommendations that we heard from a number of witnesses who request immediate reforms to EI in order to prevent further harm to women’s economic security.[59] The Liberals need to reform the employment insurance system to reflect modern work experience, as many women are not working standard 35-hour work weeks, especially for precarious workers. EI requirements based on number of hours worked can be discriminatory towards women. But, we agree with the Committee’s recommendation of ”use it or lose it” parental leave for second parent. The NDP has been urging the Liberal government to introduce this measure.

Recommendation: That the Government of Canada immediately reform EI requirements to reflect the new reality of precarious, low-wage work done disproportionately by women.

MANDATORY GENDER-DIVERSE BOARDS OF DIRECTORS

•  In 2016, women represent only 12% of the board seats of Toronto Stock Exchange’s publicly listed non-venture companies.[60]
•  Only 27% of boards of directors of crown corporations, agencies, and commissions members are women.
•   73% of Canadian technology firms do not have women on their boards.[61]
•   Under-representation of women in these positions is detrimental to the Canadian economy as a whole.[62]

The Committee recommendation to use the discredited “comply or explain” model doesn’t reflect the recommendations we heard from expert witnesses.

•   Caroline Codsi, the President and Founder, Women in Governance explained that the “comply or explain” principle has been in effect for two or three years, and the results are, at minimum, lukewarm.” On the other hand, she said that “quotas' effectiveness is glaring […] When we legislate, we have women. When we don't legislate, we have excuses. It's that clear.”[63]

The Committee on the Elimination of Discrimination against Women (CEDAW) recommended that the federal government “adopt quotas to enhance the representation of women in managerial positions in companies”[64].

Recommendation: That the Government of Canada require that half of all government appointments to the boards of Crown corporations and government agencies be women and require that publicly traded, federally regulated companies have a minimum of 40% women on their boards.

CONCLUSION

A key test of Prime Minister Trudeau’s feminist agenda will be whether he immediately implements the NDP’s concrete measures to ensure that Canadian women do not fall further into precarious work and poverty.

We urge the Canadian government to demonstrate leadership, by walking the talk, and dedicating the political and financial support, resources and funding to improve women’s economic security and ensure equal participation of women in the Canadian economy. It’s beyond time to put words into action.