Advocating Workplace Integrity

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1 Advocating Workplace Integrity

2 The Ageing Workforce May 25, 2016 Heather Hettiarachchi

3 Generations in the workforce Traditionalists born between Baby Boomers born between 1946 mid 1960s. Generation X mid 1960s Generation Y (Millennials) igen or Gen Z born after 1996

4 Some Statistics As of 2013, the number of year olds in Canada is higher than the number of year olds. In 2011, 42.4% of the working-age population was between the ages of It is estimated that employees over the age of 55 years will comprise 18 20% of the workforce in With the elimination of mandatory retirement, the average of retirement in Canada, has increased over time.

5 What does this mean for employers?

6 CHALLENGES OF AGEING WORKFORCE Increased wages Age related physical/mental decline Relationships between younger and older workers Performance issues Discomfort with new technologies Employers reluctant to train older workers

7 ADVANTAGES OF OLDER WORKFORCE Institutional knowledge/corporate memory. Stability. More conscientious. Require less supervision Better quality of work.

8 AGEING WORKFORCE KEY ISSUES This is a very broad topic, so we are going to look at some key issues: Human Rights Benefits Severance Succession Retention

9 HUMAN RIGHTS Mandatory retirement was eliminated in British Columbia on January 1, 2008 Prior to 2008 legal for employees to have to retire at age 65. After 2008 requiring employees to retire at age 65 would violate human rights legislation. So employment agreements that require employees to retire at a certain age, could amount to age discrimination.

10 HUMAN RIGHTS contd. However, there are exceptions to mandatory retirement: Safety sensitive positions transit operators Pilots, police, firefighters Employer must be able to meet Meiorin Test for an age related retirement to be upheld.

11 HUMAN RIGHTS contd. MEIORIN TEST Did the employer adopt the policy/standard for a purpose rationally connected to the performance of the job? Was the policy/standard adopted in an honest and good faith belief that it was necessary to fulfill that work related purpose? Is the policy/standard reasonably necessary to accomplish a legitimate work related purpose?

12 HUMAN RIGHTS contd. Under Human Rights, we will further review: Accommodating health issues Accommodating eldercare responsibilities Discrimination in the hiring process Discrimination in corporate downsizing Targeted termination of older employees

13 HUMAN RIGHTS - Accommodation Older workers may require significant accommodation. Employers need to address requests for accommodation in a timely way. When a request is made, clarify whether employee actually needs the accommodation. Ask for medical confirmation of the requested accommodation and employee s capabilities.

14 HUMAN RIGHTS - Accommodation Duty to accommodate is a multi party responsibility. Undue hardship Employers should expect to face some hardship.

15 HUMAN RIGHTS Accommodation of Eldercare Responsibilities Devaney v. ZRV Holdings Ltd., 2012 HRTO 1590 IUEC v. Otis Canada, [2013] N.S.L.A.A. No. 4

16 HUMAN RIGHTS Practical Tips Employers may need to adapt physical environments Flexibility Aspects of flexibility include: 1) Changing job description. 2) Introducing alternative forms of work scheduling 3) Using technology to reduce commuting. 4) Increasing ability of an employee to change positions within same company 5) Assessing skills of individuals periodically

17 DISCRIMINATION IN HIRING THE AGEING WORKFORCE

18 HUMAN RIGHTS Age Discrimination Hiring employees Terminating employees Promotions Reiss v. CCH Canadian Ltd., 2013 HRTO 764 Cowling v. Alberta (Employment & Immigration) 2012 AHRC 12

19 DISCRIMINATION IN DOWNSIZING

20 DISCRIMINATION IN DOWNSIZING

21 TARGETED TERMINATION OF OLDER WORKERS

22 TARGETED TERMINATION OF OLDER WORKERS THE AGEING WORKFORCE

23 BENEFITS Higher benefits and insurance costs. Older workers report more physical health problems. Estimated that over 30% of Canadians between years have some form of disability. Two-tiered benefit plans

24 BENEFITS contd. Practical Tips Increase the ceiling for disability. Increasing benefits. Review health benefits and consider changing benefits package. Examples: Adding health screening, optical and dental checkups, physiotherapy, to existing plans.

25 SEVERANCE ISSUES Common law severance is determined by looking at a number of factors. Generally, the older the worker, the longer the notice period

26 SEVERANCE ISSUES Practical Tips Written employment agreements. Enforceable termination provisions. Consideration for employment agreement/changing terms.

27 SUCCESSION Retirement of older workers: Loss of institutional knowledge Loss of experience/wisdom Loss of leadership skills Loss of network

28 SUCCESSION Practical Tips Implement mentoring/shadowing. Think ahead and plan proactively for impending retirements. Phased retirement. Implement plans to transfer knowledge/skills Train younger workers.

29 RETENTION Retaining older workers Provide incentives Flexible hours Retain as consultants Part time arrangements Training and retraining Combining older and younger workers in teams

30 THANK YOU! HEATHER HETTIARACHCHI TEL:

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