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Results: 1 - 15 of 22
Jerry Dias
View Jerry Dias Profile
Jerry Dias
2021-05-20 12:51
Thank you very much, Mr. Easter.
Good afternoon, Mr. Chair and members of the committee. I’m pleased to be here today to provide input on the budget implementation bill. My name is Jerry Dias, and I'm the national president of Unifor.
Just as an aside, it's always my pleasure to appear before many MPs I have had some stimulating debates and conversations with over the years. Once I give my presentation I'm going to have to get off the call. I'll be speaking to the Prime Minister very shortly on a variety of things, but also I have my national executive board meeting going on as we speak and I'm going to get to that once I'm finished with the Prime Minister.
Since the beginning of the pandemic, Unifor has advocated for governments at all levels to put policies in motion to build a fair, inclusive and resilient economic recovery. We call it our “build back better” plan. This year’s budget and the first budget implementation bill show the government is at least on the right track. There are a number of items in the bill that are a good start but need some improvement.
These are the items I will bring to your attention today. First, I want to address the minimum wage. Reinstating the federal minimum wage and increasing it to $15 an hour is a long overdue move. It will significantly impact more than 67,000 people working in the federally regulated sector, but $15 an hour is no longer adequate. The truth is that we’ve been calling for a $15 minimum wage for many years now. It may have been enough five years ago, but it's certainly not enough today.
Frankly, the government was talking about implementing this in 2019, and even then it would have been somewhat short. The minimum wage should be set at 60% of the median wage for full-time workers. This was the recommendation of the government’s own expert panel on modern federal labour standards. Following this policy would set the minimum wage at $16.73. Government should be adjusting the minimum wage annually by inflation or by the average annual wage increase, whichever is higher, and establishing a federal low-wage commission to monitor the impact of low wages on workers and the labour market.
Second, I want to address the employment insurance and recovery benefit extensions.
Extending the wage subsidy program is an important step in keeping workers employed during this tumultuous time. The ramp-down rates make sense in many circumstances, but for the hardest-hit sectors, such as air transportation, this change can make the difference between a worker keeping their job or not. We recommend increasing the top-up rate for companies with significant, persistent revenue decline, as they may not be eligible for the Canada recovery hiring program because they are not yet ready to hire new workers.
The executive compensation rule for publicly traded companies should be applied for all wage subsidy support received in 2021, and not just what is received after June 5.
The extension of the Canada recovery benefit and the temporary changes to employment insurance are important. Together, EI and the CRB have illustrated the incredibly important role income support plays in stabilizing workers' lives and the need to fix our currently broken EI system with permanent reforms. We recommend some additional items to strengthen the positive effects these programs can have, including reducing the qualifying hours from the current 420 to 360, and maintaining the minimum benefit rate at $500, while increasing the income replacement rate.
Third, the budget takes an important step in stabilizing employment at airports by reducing some of the negative effects of contract flipping. We support the change and encourage consultation on the regulations in order to ensure all workers are protected by it. In order to further reduce the negative effects of contract flipping, government should extend successor rights.
Fourth, implementing the digital tax on digital giants and extending HST to streaming services are important steps to creating a level playing field and ensuring that large, digital corporations are paying their fair share. We're very concerned that the laws put in place will result in the digital giants not paying their fair share. That outcome would be unacceptable.
Fifth, the modest changes to OAS acknowledge that the current retirement security system does not provide adequate income for retirees, but it is not enough. Government should be exploring innovation in providing defined benefit plans for workers instead of looking to modest changes for the worst off and annuities that mimic retirement security provided by a DB plan, but deliver less.
Finally, the nod to the importance of Canada-made, zero-emission vehicles through tax incentives is incredibly important and a worthwhile endeavour. I will take a moment to remind folks that we do not yet build ZEVs in Canada. We have to keep this in mind as we consider ways to encourage consumer adoption, but we don't need millions in public dollars subsidizing imports. If we want to build this industry in Canada, and I think we do, all policies, including the development of charging stations, must move in lockstep with our industrial development plans.
Thank you. Kaylie will look forward to taking your questions.
Once again, thank you all very much for your time today.
View Peter Julian Profile
NDP (BC)
Thanks very much, Mr. Chair.
Thanks to all our witnesses for coming forward with such compelling testimony. We also hope that you and your families continue to be safe and healthy during this pandemic as the third wave crashes on our shores.
I'd like to start by asking questions of Ms. MacEwen.
First, on behalf of the committee, I deeply thank the workers of the Canadian Union of Public Employees, who are often the frontline workers, health care workers and first responders across the country who have shown incredible courage in helping as many Canadians as possible get through this pandemic.
I also want to congratulate you, Ms. MacEwen, on your new book Share the Wealth!, which you co-authored with Jonathan Gauvin. Hopefully we can get a bulk rate for the finance committee, because I think each member of the finance committee should read your book. That's my first question, really.
You've raised an astounding figure that I wish our mainstream media would talk about more often—the $50 billion annually that has been lost as a result of tax cuts and a whole variety of loopholes. It goes to the ultra-rich in our country, $50 billion every year. In terms of what that would mean for seniors, what it would mean for students, what it would mean for families, what it would mean for the homeless and what it would mean for indigenous communities, it's absolutely unbelievable. Instead, we've seen, as you mentioned, a slashing of public services when what we really need to do is to stop the massive leakage from the very wealthy among us.
How important is it for us to put into place a fair tax system so that every Canadian pays their fair share and we have the wherewithal to ensure that Canadians get their needs met?
Angella MacEwen
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Angella MacEwen
2021-05-20 13:24
I think it's critically important, and it's really important to look at the whole system, as we say, instead of having small token pieces. The token tax on aircraft singles out a tiny sliver of what we're talking about in terms of wealth, as one of the presenters here today said, and there are huge amounts of wealth in Canada that are going untaxed right now.
We could increase taxes, as I said, by $50 billion a year, and only be taxing the top 1% of wealth owners and top 10% of income earners more, and we could afford pharmacare and we could afford to eliminate student loan payments. We could implement dental care and we could train workers for the coming change in the economy. It's recently been said that we're going to be creating too many green jobs for the number of trained workers that we have, so all of these issues are of the utmost importance. We need to have the resources available to act on them.
I just want to say I agree with Mr. Balsillie that we also need those economic frameworks in place in order to act on them. We can't just be handing out money. This is not about helicoptering money to make the economy work better. We need to be very strategic and thoughtful about how we're spending this money in order to get the most benefit out of it.
View Gabriel Ste-Marie Profile
BQ (QC)
Great.
We have less than two months before the summer recess. At the moment, work on Bill C-10, introduced by the Minister of Canadian Heritage to amend the Broadcasting Act, is not very advanced. In addition, the minister wants to propose a bill against hateful content online. And that's not counting the bill on the web giants that he promised you this spring. That's a lot of work to do in less than two months.
Furthermore, we know that an election will be called this summer. Are you concerned that the bill meant to support you will not be introduced until after the election, unfortunately?
Benoit Chartier
View Benoit Chartier Profile
Benoit Chartier
2021-04-29 16:43
Yes, that's our concern.
We would like to see the priority given to the bill to support the media. In our opinion, it is even more urgent than Bill C-10 and the bill against hateful content online. It is a matter of survival. Not just the weekly newspapers are in trouble; every newspaper in Canada, from the smallest to the largest, is in a state of crisis.
Sylvain Poisson
View Sylvain Poisson Profile
Sylvain Poisson
2021-04-29 16:44
It would also be possible to combine the three into one huge bill, but that may well complicate things.
Benoit Chartier
View Benoit Chartier Profile
Benoit Chartier
2021-04-29 16:44
It would be a mammoth bill.
Sylvain Poisson
View Sylvain Poisson Profile
Sylvain Poisson
2021-04-29 16:44
Yes, absolutely.
Thank you.
View Peter Julian Profile
NDP (BC)
Thank you very much, Mr. Chair.
My next question is for Mr. Poisson and Mr. Chartier.
Right now, we are seeing unfair competition. The numbers you just gave us are quite shocking. Half of the titles have been eliminated in recent years. Facebook, which pays no taxes, can cancel all the publications, weekly and otherwise, for our communities.
Where will it end? Should the government act in the next six months, as we believe is needed? If we do nothing in the next few years, what will be the results in Quebec and elsewhere in Canada?
Benoit Chartier
View Benoit Chartier Profile
Benoit Chartier
2021-04-29 17:13
The results will be the same in Quebec and elsewhere in Canada. The issue is national, not provincial.
As mentioned earlier, the government must provide legislation right away. It could introduce a mammoth bill that would encompass Bill C-10, the anti-smear bill, and the bill against Facebook and Google to help Canadian newspapers. Whatever happens, it needs to happen as soon as possible.
In terms of the media, the equivalent of the Australian legislation that was passed this winter needs to be implemented in Canada. I am speaking on behalf of 100 weeklies in Quebec, but I also include all the newspapers associated with News Media Canada, of which Hebdos Quebec is a part. It includes all the weeklies and community newspapers across Canada. They are in every riding. All of the members of Parliament here on the Standing Committee on Finance have a special relationship with the newspapers in their ridings: they know the editors and the reporters, and the reporters know the members of Parliament, their press secretaries and political staffers.
Newspapers across Canada are under great strain right now, and the COVID-19 pandemic is not helping.
We cannot wait a few years, or even six months. Legislation must be introduced by the end of this parliamentary session in Ottawa, before the summer recess, so that there is some hope for the summer, and before an election is called. If an election is called, the process will take even longer, because we will have to wait to find out whether there will be a majority or minority government, which ministers will form the new cabinet, and so on. I think the Minister of Canadian Heritage needs to speed up the process and introduce legislation as soon as possible.
View Maxime Blanchette-Joncas Profile
BQ (QC)
There are other ways to make retail businesses more competitive. We've noticed in the past few years that taxation is the main way to accomplish this. How can a retailer compete with a web giant? We've also noticed that tax collection isn't necessarily fair to our local retailers. The federal government is unable to collect GST from web giants located outside the country. I'd like to hear your thoughts on this.
The announcements made yesterday as part of the budget had already been discussed recently. As of July 1, all digital platforms will be required to collect GST. In your opinion, is this measure timely for well-established businesses in our municipalities? Do you think that the impact is already too severe and that it's too little too late to reverse the trend?
Jean-Guy Côté
View Jean-Guy Côté Profile
Jean-Guy Côté
2021-04-20 16:59
I'll tell you right off the bat that it's better late than never.
Basically, you must understand that the QST is currently being collected by most online platforms in Quebec. Some aspects are already in place. The Quebec experience shows that, when asked, most major online sales platforms readily comply with government requests to register and collect taxes.
Since 2015, we've been talking about this issue and we've been wanting to see this money come back home. There will always be work to do to ensure fairness between retailers and online businesses located outside the country. One option would be to decide that the buyer's place of residence will now be the primary factor in determining whether to collect the tax, instead of relying solely on the business to collect the tax.
Again, I want to point out that tax collection in Quebec is going well. The fact that this measure will be extended to the rest of Canada is good news. In Canada, 86% of online sales are made to businesses outside the country. In 55% of cases, these businesses are located in the United States. In 31% of cases, the businesses are located in other parts of the world. A huge number of non-Canadian or non-Quebec online businesses aren't subject to Canadian borders. It's good news that elements of fairness are being introduced.
View Maxime Blanchette-Joncas Profile
BQ (QC)
In your opinion, Mr. Côté, what would have been the impact if the GST collection had started before the pandemic, following the example of Quebec, which started collecting the GST in 2015?
Jean-Guy Côté
View Jean-Guy Côté Profile
Jean-Guy Côté
2021-04-20 17:01
I can't say what the impact would have been.
However, it's important to acknowledge that the major trends in online shopping and retail were already under way. Did they pick up speed during the pandemic? Would some consumers have behaved differently? Would they have shopped at local businesses instead of through the major platforms? Perhaps.
However, it's important to note that the pandemic has made buying local more popular. People connected with their local businesses. They wanted to know about local businesses, so they searched online to find them. Also, the fact that people were working from home had a positive impact on businesses on nearby streets or on the main street in their neighbourhood. This helped the retailers and the small, local businesses. I like to say that we'll go back to the days when the retailers knew our first name. In our opinion, this is a great trend and great news. It's probably one of the silver linings of the pandemic.
View Peter Julian Profile
NDP (BC)
Thanks, Mr. Chair.
During this pandemic, we've seen banks earning $29 billion and we've seen Canada's billionaires now increase their wealth by over $53 billion. So far, the only reply that you've had for us, Minister Freeland, is a partial closing of the stock option loophole, and we know that is something the government has been promising now for five years.
The question is very simple. At a time when it should be a shared sacrifice, at a time when everybody should be paying their fair share, why is this government so opposed to a wealth tax like the ones other countries have put in place, an excess profits tax like we had in place in the Second World War to avoid profiteering, or even letting the web giants pay their fair share?
I know your reply will be that, well, the consumers will be paying GST/HST. The reality is that the web giants are not paying the corporate income tax. They are tax-free competition, undermining many of our Canadian businesses.
I still am struggling with why the government seems to be opposed to solutions that would actually provide more resources so that we can provide what Canadians need in this time of pandemic and in the important rebuilding that will last for years afterward.
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