Ministry Role and Services

Ministry Overview

The Ministry of Skills Development and Labour is working to build a modern employment environment that meets the needs of employees, employers, unions and business in British Columbia.

The core programs of the ministry involve the development, implementation and enforcement of employment standards, workplace safety standards and labour relations rules. Programs are delivered through one of the ministry's three program areas:

1. Skills development and employment standards,
2. Industrial relations, and
3. Workers' compensation.

The ministry administers 10 statutes — the Labour Relations Code, the Employment Standards Act, the Workers Compensation Act and several statutes concerning the collective agreements of particular service sectors. Some of these statutes are administered in whole or in part by independent agencies, such as the Labour Relations Board, the Employment Standards Tribunal, and the Workers' Compensation Board.

Our key stakeholders are everyone who participates in the B.C. economy, as workers (both unionized and non-unionized), as public or private sector employers, or as unions or industry associations. Major contextual factors include the state of the provincial, national and global economies.

Ministry Vision, Mission and Values

Vision

A modern work environment for British Columbians that encourages innovation, rewards creative thinking and increases productivity. Employees and employers are treated fairly and equitably. A prosperous British Columbia where employers and employees have confidence in the future.

Mission

The mission of the Ministry of Skills Development and Labour is to create an employment environment with dynamic workplaces that meet the needs of workers, employers and unions. Vulnerable workers will be protected. The ministry will ensure that British Columbians have the tools they need to foster working relationships in safe and healthy workplaces. It will develop programs and legislation that contribute to provincial competitiveness and prosperity.

Values

The following values will be integral to achieving the goals of the Ministry of Skills Development and Labour:

1. Fairness — We seek fair and balanced workplaces in all sectors and will ensure that all related ministry decisions are made in a consistent, professional, fair and balanced manner.
2. Competitiveness — We support a competitive business environment that attracts investment to British Columbia and retains our skilled employees.
3. Respect — We will protect the most vulnerable workers in the province and ensure they are treated equitably, compassionately and respectfully.
4. Simplicity — We will encourage small business to prosper through simple and streamlined processes.
5. Responsiveness and Flexibility — We strive to be relevant and responsive to constantly changing workplaces.
6. Accountability — We promote responsible fiscal responsibility and management and the implementation of affordable public policies.
7. Teamwork — We value the hard work and expertise of all ministry employees.

Ministry Operating Context

The Ministry of Skills Development and Labour has operated and made decisions under the following strengths and challenges.

Strengths

In 2003/04, the B.C. economy experienced significant job growth, more work opportunities for youth and rising investor confidence.

• Statistics Canada data show that between December 2001 and March 2004, B.C. created over 128,000 new jobs, resulting in the highest employment increase in Canada at 6.7 per cent.
• A report prepared in October 2003 for the 2010 Winter Games Human Resources Planning Committee estimates that between 2003 and 2015, the growing B.C. economy will generate more than one million job openings, including new jobs, vacancies created through retirements, and opportunities generated by the Olympic Games, construction of the Vancouver Convention and Exhibition Centre, Sea-to-Sky Highway improvements, and construction of the Richmond-Airport-Vancouver Rapid Transit Line.
• Other signs of B.C.'s economic improvement are increases in residential and non-residential building permits, real estate sales, business incorporations, retail trade, oil and gas exploration and lumber and paper shipments.

Through the preventative endeavours of workers, employers, unions, industry associations and the WCB, the injury rate in B.C. workplaces has declined steadily every year since 1991, for an overall decline of 52 per cent in 12 years.

• The Workers' Compensation Board reports that in 2003, the injury rate declined by nearly seven per cent from the previous year to a record-low of 3.0 accepted short-term disability claims per 100 person-years of employment.
• The Board calculates that an injury-rate reduction of one percentage point translates into approximately 600 fewer workers experiencing a time loss injury, $9 million in lower claims, and approximately 27,000 productive days gained for the economy.

Challenges

British Columbia's economy is growing, but faces significant competition with international markets.

• The global economy is highly competitive for both investment and skilled workers. While B.C.'s growing economy is expected to generate over one million job openings between 2003 and 2015, there may be skill gaps — meaning demand will exceed supply unless appropriate measures are taken — in certain regions and specialized occupations.

Several public sector collective agreements will expire in 2004 requiring government to begin negotiating new contracts with the hospital employees, nurses and teachers.

• The ability of the ministry to maintain labour peace will be challenged by negotiations between these high-profile employers and unions. In 2003, government began negotiations with the Hospital Employees Union and the B.C. Government and Service Employees Union. The Insurance Corporation of British Columbia also initiated contract discussions, and B.C. Ferry Services Inc. and the B.C. Ferry and Marine Workers' Union agreed to binding arbitration in 2003.

The ministry is concerned about maintaining employment standards for the most vulnerable employees while allowing B.C. business to compete both nationally and internationally.

• The ministry is committed to protecting vulnerable employees, including garment workers and agricultural workers. As these groups have historically been the most disadvantaged and the least able to advance their own interests, the ministry's challenge is in trying to involve the sectors in achieving employer compliance with employment standards.

The ministry faces the challenges of fostering continued growth in the film and television production industry in view of a labour relations climate that has the potential to limit that growth.

• British Columbia has created a positive climate for the film and television production industry with a range of programs providing financial support and incentives. The Ministry of Small Business and Economic Development reports that the industry grew from $176 million in 1991 to $1 billion in 2002. However, continued growth is threatened by the potential for labour unrest in this sector. The ministry's appointment of an Industrial Inquiry Commission to study labour issues in the B.C. film industry will help to ensure that B.C. continues to be an attractive destination for film production.

		Ministry Structure (March 2004)

Ministry Structure and Core Business Areas

Industrial Relations

Through its industrial relations activities, the ministry oversees the fair administration of B.C.'s industrial relations to promote a healthy labour relations environment. The ministry is responsible for the Labour Relations Code. The Code establishes the rights of employees to choose trade union representation, the system for collective bargaining between employers and trade unions in unionized workplaces, and mechanisms to address changes in the employment structure of the workplace.

The Labour Relations Code also establishes the Labour Relations Board (LRB) as an independent tribunal to govern the establishment and regulation of 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, preventing conflicts and resolving contractual disputes during the term of their collective agreements. Votes ordered under the provisions of the Labour Relations Code are supervised by staff from the Employment Standards Branch.

The LRB has a budget of $5,995,000 and 43 employees. The Chair of the LRB is also the Chair of the Employment Standards Tribunal, which has four additional employees and funding of $691,000.

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.

Employment Standards

Employment standards activities aim to increase compliance with the Employment Standards Act and to foster fair, productive and harmonious workplaces that promote prosperous business, quality working lives and a strong, growing economy.

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

There are 116 staff in the branch serving in nine sites throughout the province, with a budget of $11,396,000.

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

Outreach to workplaces includes random audits to ensure general compliance and a level playing field for employees in various sectors. The branch also carries out targeted enforcement in areas identified as having greater difficulties with compliance.

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, the branch adjudicates disputes under the Act and issues a determination.

Determinations made by the Director of the Employment Standards Branch can be appealed on three grounds: error of law, failure to observe principles of natural justice, or new evidence has become available. Appeals are made to the Employment Standards Tribunal, an independent adjudicative body, for timely, efficient and neutral resolution.

In addition to the responsibilities the branch has under the Act, branch staff provide services to the Labour Relations Board by conducting and monitoring certification and decertification notices.

Through this program area, the ministry also continues to monitor labour market conditions in B.C. for signs of emerging skills shortages, and undertakes research on the effective solutions to mitigating skills shortages. The ministry also provides assistance and advice to industry associations who are engaged in sector-wide human resource planning, and assists other ministries in addressing sector-specific employment standards issues to promote a more prosperous economy. These include the development of sector-focused employment standards regulations for the oil and gas, agriculture, mining, forestry, silviculture, aquaculture and film industries, and the development of sector specific skills development initiatives.

Workers' Compensation System

The ministry oversees the Workers Compensation Act (WCA), which provides a framework for promoting safe and healthy workplaces and sets out the workers' compensation system for B.C. The workers' compensation system includes the following components: the Workers' Compensation Board, the Workers' Compensation Appeal Tribunal, and the ministry-based Workers' and Employers' Advisers Offices.

The Workers' Compensation Board (WCB) is an independent statutory agency mandated to administer the Workers Compensation Act. The Board creates and enforces provincial workplace health and safety regulations. It also adjudicates claims and administers wage-loss benefits and vocational rehabilitation benefits for workers suffering injury or disease and their dependents or survivors. Under the Workers Compensation Act, the WCB Review Division has a role in providing reviews of the WCB's claims decisions. The board is wholly funded by employer payroll assessments (the accident fund).

Effective March 3, 2003, the Workers' Compensation Appeal Tribunal (WCAT) replaced both the former Workers' Compensation Review Board and the former Workers' Compensation Board Appeal Division. WCAT is the second and final level of appeal in the restructured appeal system, which was introduced to simplify the process and enhance the consistency, timeliness and finality of decisions. Autonomous from the WCB, it is the responsibility of the Ministry of Skills Development and Labour, and is funded by employers through the accident fund. For the first three years of operation, WCAT has been provided with additional resources to reduce the backlog of appeals built up under the old appeal system. In 2006/07, gross expenditures will be reduced from the current level of $22.7 million to $18.9 million, and employees will be reduced from 185 to 167 FTEs.

A third component of the workers' compensation system are the ministry-based workers' and employers' advisers, who provide support and advisory services to parties involved in claims under the workers' compensation system. The ministry administers the Workers' Advisers Office and the Employers' Advisers Office, which are authorized by the Workers Compensation Act and funded by employers through the accident fund.

The Workers' and Employers' Advisers Office directly support the ministry's goal of safe and healthy workplaces and a workers' compensation system that is responsible to the needs of workers and employers.

Employers' Advisers are mandated to work with employers and the Workers' Compensation Board to resolve claims, assessments and safety issues. They advise employers on the interpretation of the Workers Compensation Act and any decisions under the Occupational Health and Safety Regulation, and provide information and training to employers on legislative and regulatory changes to assist employers in meeting their obligation and responsibility to provide a safe work environment for their workers.

Workers' Advisers are mandated to advise and assist injured workers in resolving issues with respect to benefits, claims and the interpretation of the Workers Compensation Act. Program clients include injured workers and their dependents, professional associations, union representatives, injured workers' associations and members of the public. They contribute to public policy improvements and provide information and public education.

Skills Development

The ministry has two areas of business related to skills development: the development of a provincial human resource strategy and the development of a youth employment strategy.

In June 2001, Cabinet directed the Minister to develop a provincial human resource strategy that focused on identifying potential skills shortages that would undermine economic growth in B.C. The framework for the strategy was presented to Cabinet in January 2004, and the Strategy was released on May 3, 2004. The ministry has developed this strategy through a process of internal consultation across government ministries; discussion with employers in eight key sectors; discussions with academics with expertise in labour market dynamics, and extensive analysis undertaken by ministry staff. The strategy includes an inventory of programs and policies that impact human resources, as well as a range of ideas for addressing skills shortages within firms, and concrete examples of businesses who have adopted tactics on their own. Through this process, the ministry has worked with the following agencies: Ministry of Small Business and Economic Development; 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. Private sector business organizations also played an important role in facilitating the employer discussions. The Business Council of British Columbia, the BC Chamber of Commerce and the Canadian Federation of Independent Business provided advice to the ministry on how best to solicit employer perceptions about skills shortages, and helped ensure that ministry staff had representative feedback from the eight sectors.

During 2003/04, the ministry participated as a member of the 2010 Winter Games Human Resources Planning Committee. The committee has now concluded its work, and released its final report "Planning for Gold" in February 2004. Ministry analysis and expertise on labour market issues is one of the key inputs for the development of the strategy. The work of sharing information and coordinating initiatives to meet the 2010 human resource challenge continues through the 2010 Multilateral Stakeholder Committee — a less formal committee with representation from federal, provincial and municipal governments, First Nations, Legacies Now, and the Organizing Committee for the Olympic Games (OCOG).

Through 2004/05, ministry staff will focus their efforts on supporting industry-led human resource planning initiatives. Examples of this include the Agriculture Labour Partnership Committee and the Construction Sector Council Labour Market Information working group for B.C. Staff also serve as a resource for other ministries who require expertise on labour market issues.

The ministry will continue to monitor the state of youth unemployment in British Columbia, in order to determine the impact that broader economic recovery will have on lowering youth unemployment.

Strategic Shifts and Significant Changes in Policy Direction

The Ministry of Skills Development and Labour has experienced no shifts or changes from the goals outlined in the 2003/04 – 2005/06 Service Plan Report, and will stay the course with those targets.

Update on New Era Commitments

Many of the New Era commitments for which the ministry is responsible were completed in 2001/02. Substantial work was done during 2003/04 towards achieving the following remaining commitments:

• Give workers and employers greater flexibility in employment standards to negotiate mutually beneficial relationships that help them compete and prosper;
• Make the Workers' Compensation Board more responsive to the needs of workers and employers alike;
• Focus on reducing B.C.'s youth unemployment.