The WE Charity investigation is troubling for many reasons. One reason employment lawyers are interested is because the federal government’s plan was to pay student volunteers less than minimum wage for their so-called “volunteer work”.
In April of this year, the federal government announced a COVID-19 relief program for youth. It included the controversial Canada Student Services Grant. The grant was intended to provide students with up to $5,000 in compensation for their volunteer activities. This may seem fine at first: what’s wrong with compensating students for volunteer activities that would otherwise be unpaid?
According to a federal government backgrounder, the program was set up so that students would qualify for $1,000 in grant money for every 100 hours worked. Students could earn up to a maximum of $5,000. There are two problems with this system: (1) students would effectively be paid $10 per hour, less than the minimum wage in any province, including Ontario; and (2) students had to work in 100-hour segments to qualify for payment. Someone doing 199 hours would still only receive $1,000, the same as a student who volunteered for the minimum 100 hours.
This payment scheme was problematic on many levels. At best, it blurred the line between volunteerism and work. At worst, it took advantage of students—a group plagued by precarious employment in the best of times—and set a precedent for other charitable organizations and even private companies to do the same thing. It is deeply concerning that our highest level of government would encourage such a program.
In the midst of a pandemic, which has already caused mass job loss and is projected to continue stifling employment opportunities, we must all be concerned about precarious employment. Undoubtedly, cheap ways to do work will gain traction even as the pandemic subsides and employers try to recover. Contract, temporary, and casual work is already on the rise as employers look for new ways to lower their employment costs. Legal challenges are becoming more prevalent. Companies such as Uber and Foodora have already found themselves in hot water as their workers try to use Canadian tribunals and courts to improve their situations. To reduce costs, employers will usher in the era of the “independent contractor”. Companies will find ways to make the employee pay for benefits and insurance. Employers will try to limit termination costs to only the minimums provided by the Employment Standards Act, 2000. The concept of common law reasonable notice will be under attack as too expensive. These issues are especially likely in the wake of the economic pressures created by the pandemic.
The last thing we need to see are students working for less than the minimum wage. Our federal government should promote responsible employment practices not questionable ones. A record number of workers are and will continue to be vulnerable in the coming months. This problem may exist for years. Now more than ever, we all should know that we need to work towards a collective good, where competing interests are balanced. Employers should do their part by offering lawful employment, while employees should become more willing to help their employers adapt in unprecedented times.
We, at Dunsmore Law, provide context. We help employers build positive and productive workplaces, and we encourage employees to understand and exercise their rights responsibly. Please call today to find out more!