2003/04 – 2005/06 SERVICE PLAN Ministry of Skills Development and Labour

Goals and Core Business Areas

Goals

1. Promote productive and competitive workplaces from which good relationships in the labour relations community can be developed.

The ministry’s initiative to contribute to a more positive investment climate continues.

The ministry will continue to move to a labour relations framework that:

• helps promote a vibrant, productive and competitive economy;
• balances the rights and obligations of employers, trade unions and employees; and
• protects the rights of third parties not involved in industrial disputes.

The ministry provides broad-based, all-inclusive industrial relations services that are focused and efficient.

2. Fair and balanced employment standards that promote mutually beneficial relationships between employees and employers.

While being responsive to the needs of business the ministry will ensure minimum standards are enforced to protect vulnerable workers. New employment standards legislation passed in 2002 fulfills a government commitment to give employees and employers greater flexibility in negotiating mutually beneficial relationships that help them compete and prosper.

These changes provide for:

• a shift from blanket coverage, prescribed practices and government enforcement to a system of focused coverage and enforcement;
• greater flexibility to support practices that work for employers and employees; and
• the creation of a relationship between government and industry that encourages good practices and exerts pressure on non-compliant employers.

This focused approach to employment standards will allow the Employment Standards Branch (ESB) to better fulfill its core mandate while supporting the deregulation aims of government.

Regulatory changes that address unique circumstances of specific sectors such as high technology, oil and gas and agriculture also proceeded in 2002. Further ongoing discussions with various sectors continue as government shifts from “one-size-fits-all” to a more industry-specific approach. The intent is to provide the appropriate combination of flexibility and enforcement to ensure these industries, their employees and communities can grow and prosper together.

3. Safe and healthy workplaces and a workers’ compensation system that is responsive to the needs of employees and employers alike.

Over the next three years the ministry will make changes to the workers’ compensation system. Legislative changes to the Workers Compensation Act in the spring 2002 legislative session provide that the act is more appropriate for today’s work environment.

Core reviews and overarching government strategies aimed at deregulation and “red tape” elimination will increase the responsiveness of the Workers’ Compensation Board (WCB) for employees and employers.

Core Business Areas

The following section describes the core business areas of the Ministry of Skills Development and Labour.

1. Skills Development/Industry Adjustment

The ministry has two areas of core business related to skills development. The first is the development of a provincial human resource strategy and the second is participating in the development of a youth employment strategy.

In June 2001, the ministry was tasked with developing a provincial human resource strategy in partnership with the Ministry of Competition, Science and Enterprise. The focus of the strategy is to ensure that labour market planning issues are clearly linked to economic priorities, and that there are mechanisms in place to anticipate future skill shortage situations. To guide this process two steering groups have been formed. These steering groups include representatives from the following agencies: Ministry of Competition, Science and Enterprise; Ministry of Advanced Education; Ministry of Education; Ministry of Community, Aboriginal and Women’s Services; Ministry of Human Resources; Ministry of Health Services; the Intergovernmental Relations Secretariat; and the Public Sector Employers’ Council.

To date, a framework of business strategies that could be adopted to address both cyclic and structural skills shortages has been developed. These business practices range from recruitment and compensation practices, which could help ease labour shortages in the short-term, to investment in training and succession planning, which will have longer-term benefits.

The ministry has assisted the Public Service Employers’ Council in the development of a labour market planning template that could help public service employers anticipate and avert specific skill shortages. The ministry does not have new funding for any programs related to this area. Future work on implementation of this strategy will require cabinet decision.

The ministry is continuing to work jointly with the Ministry of Competition, Science and Enterprise on a youth employment strategy for British Columbia. While this will take shape separately from the human resource strategy, the linkage to the issues of skills shortage is a direct one, as helping to reduce youth unemployment will be necessary in order to offset pressures due to skills shortages. A youth employment strategy will be completed by the end of 2002/03. No funding has been allocated for any program recommendations arising from this strategy.

In January 2002, the ministry announced that administration and funding of Industrial Adjustment Services was no longer a core service for the ministry. These services have been phased out, and related funding and staffing allocations were completed by September 30, 2002.

2. Workplace Programs (Employment Standards)

Employment standards activities aim to foster fair, productive and harmonious workplaces that promote prosperous businesses, quality working lives and a strong, growing economy.

The ESB administers the Employment Standards Act (ESA) and Regulation, which set minimum standards of wage payments, overtime, vacation, statutory holidays, leaves, compensation for length of service, hours of work, employment of children and licensing of certain employment services.

In addition to enforcing the legislation, the branch provides education, training and early intervention to ensure all parties in the workplace are aware of their rights and responsibilities and the enforcement of legislation.

Branch staff answer employee and employer inquiries, receive and address complaints of contraventions, and deliver professional, neutral mediation services to assist parties to come to a mutually satisfactory resolution to workplace disputes. Where resolution is not possible through less intrusive means, the branch adjudicates disputes under the act.

The branch also carries out sector-specific enforcement in areas identified as having exceptional difficulties with compliance.

The ministry also assists other ministries in addressing sector-specific issues to promote a more prosperous economy. These include the development of sector-focused regulations such as oil and gas, agriculture, mining, forestry, silviculture and the film industry.

The Employment Standards Tribunal (EST) aims to provide timely, efficient and neutral resolution of appeals of ESB determinations. Legislative, regulatory and operational amendments have been implemented that reflect the government’s vision for fair and effective standards.

3. Industrial Relations

The ministry’s industrial relations activities aim to provide fairly administered industrial relations models. The ministry oversees the Labour Relations Code (LRC), which sets a framework for the rights of employees to choose trade union representation, collective bargaining between employers and trade unions in unionized workplaces, and mechanisms to address changes in the employment structure of the workplace.

The LRC establishes the Labour Relations Board (LRB) as an independent tribunal to establish and regulate relationships between employers, trade unions and employees, and to resolve disputes arising in those relationships through mediation and adjudication. As a quasi-judicial tribunal, the LRB’s ability to deal with industrial relations disputes is faster and more efficient than the courts. The LRB also provides alternate dispute resolution services which focus on assisting parties in resolving collective bargaining disputes. It also assists parties in improving labour relations, conflict prevention and resolving contractual disputes during the term of a collective agreement. Votes ordered under the provisions of the LRC are supervised by staff from the Employment Standards Branch (ESB).

The ministry actively monitors the industrial relations environment in B.C. Self-reliance in resolving disputes through free collective bargaining is encouraged, but occasionally the ministry plays a direct role in helping parties to settle difficult disputes. This helps maintain industrial relations stability — particularly when the public may be adversely affected by a dispute. For example, the Minister may appoint a mediator or special mediator to work with the parties, appoint a commission to report on the issues involved in a dispute, or direct the LRB to designate essential services.

Additionally, the Minister and ministry staff provide assistance to other ministries responsible for addressing health, education and social services concerns in the development of labour relations legislation.

4. Workers’ Compensation

The ministry oversees the Workers Compensation Act (WCA), which sets out the workers’ compensation system for B.C., provides a framework to protect workers by promoting safe and healthy workplaces, and establishes the Workers’ Compensation Board (WCB) as an independent statutory agency to administer the WCA. The ministry’s role is to ensure that the workers’ compensation system is responsive to the needs of employees and employers alike. This includes setting standards for the Workers’ Advisers Office and the Employers’ Advisers Office.

The WCA was amended in spring 2002 to establish a new governing structure to oversee the operation of the WCB. The first appointments to the new board were made in the fall of 2002. The directors will be responsible for WCB’s performance measures and standards and implementing service delivery improvements recommended by Allan Hunt.

As an independent statutory agency, the WCB provides compensation services including wage-loss benefits and vocational rehabilitation to workers suffering injury or disease.

It creates and enforces provincial workplace health and safety regulations. The board is wholly funded by employer payroll assessments.

An appeal system is available to workers and employers involved in the workers’ compensation system. In spring 2002, following review of the workers’ compensation system and administrative justice tribunals, legislation was introduced to make the appeal system more responsive to the needs of employees and employers. The legislation, modified slightly and passed in the fall 2002 sitting of the legislature, provides for a two-level appeal system consisting of an internal review by a new WCB department and an independent external appeal to a new Workers’ Compensation Appeal Tribunal.

The Workers’ Advisers and Employers’ Advisers offices are administered by the ministry and provide support and advisory services to workers and employers involved in the workers’ compensation system. The Workers’ Advisers and Employers’ Advisers offices are funded by employers through the accident fund.

A review of WCB policies and operations took place in fall 2001, with a report and recommendations made to the Minister in February 2002. Legislative amendments in spring 2002 introduced a number of changes in the compensation paid to injured workers. Further potential changes relating to occupational health and safety, benefits for the surviving family members of deceased workers, and rights of an estate are expected in a future session.