Tag Archives: legal aspects

(308) Royal what?

Royal_Bank_Building Toronto“That’s not what we’re doing.”

“What we are doing is perfectly legal.”

“We’re sorry.”

That’s pretty much how one of Canada’s largest, richest businesses responded to a burst of public outrage over what it thought would be a run-of-the-mill outsourcing of 45 Toronto-based IT employees to an Indian firm called iGate.  Could it be that Canadians are waking up to corporate power and abuse?

RBC can hardly cry poverty, they are a profitable bank capitalized at something like eighty billion dollars, so to get caught dismissing established employees to make use of a temporary worker program that allows for fifteen percent lower wages is a public relations disaster.  A turn that squanders a lot of the moral capital the bank shared with the rest of the sector for not having dumped Canadians into a sub-prime mortgage or bailout nightmare like their risk-worshipping British and American cousins came up with.

Also tough are the wider questions raised.  The list of major businesses lined up for the temporary worker program includes some of the most recognized names in the Canadian corporate caravan.  For example, Tim Hortons, the inescapable coffee shop so beloved of Canada’s working- and wish-they-were-working-class is on the list for the program.

The mass media has picked up the public’s indignation and the story seems to have legs, despite RBCs damage control effort via full-page print ads in major newspapers and online.  If all the cranky comments and Facebook flutter translates into closed accounts, loss of transaction fees and the like then this might be a learning moment for management and the board of the bank.  Certainly, Mr. Nixon, President and CEO of the bank, can’t have enjoyed the last week or so very much.  It isn’t in the selfish self interest of the bank to have a precarious, underpaid workforce and alienated customers.

Perhaps the public has learned something about the vulnerability of Canada’s massive and historically well-protected banks.  After two centuries of building profitable businesses in the second largest country in the world and emerging as global players the brand of Canada’s banking sector is perhaps more fragile than it realized.  The leverage of the public when it comes to modifiying the harmful behaviour of the banks has been glimpsed this week.  For the record, RBC puts its transaction fees up recently.

Labour groups have expressed doubt about the temporary worker program since it got going.  Unions are threatened in an economy based on flexible labour.  Additionally, word is not very good on the program from the workers inside it.  The whole deal says exploitation.  Conservative commentators like Andrew Coyne and Terence Corcoran are all over this controversy in their columns as an overblown emotional diversion which does a disservice to corporate Canada in its efforts to be its best possible self.  Such daring contrarians!

Corporate power and abuse like this, sanctioned by Ottawa, supports suburban poverty.  Adding insult to injury is the fact that the Greater Toronto Area, where the outsourcing was planned to take place, has a slightly higher rate of unemployment than the country at large, RBC is in the black and has paid out record bonuses in recent times.

Good work RBC!

Outsource Canada “I spent two days on this site!” matches the number of foreign workers in each province with the number of unemployed there.

Huffington Post Canada has added the RBC outsourcing fiasco to its ongoing coverage of middle class decline.
Temporary Insanity: RBC vs Canada’s middle class

RBC’s CEO Isn’t the Only Boss With an Obscene Salary

image: Siqbal via Wikimedia Commons

(297) Not rocket science [Report]

V-2 and MeillerwagenCanadians have been watching right-to-work developments in Wisconsin and Michigan for the last couple of years.  In those states and at home such packages of legislation are dear to neoconservative hearts and unfortunately are proving effective at putting downward pressure on wages and undermining unions.  Something like 200 laws restrictive to labour rights have been passed in Canada in nearly every province and by the federal government since the early 1980s.  The resultant discouragement of unions has contributed to rising inequality and given Canada a large volume of complaints regarding restricted union rights at the International Labour Organization.

Such developments are the topic of a labour conference held this week in Toronto and a new research report from the Canadian Foundation for Labour Rights.  CFLR is an agency of the National Union of Public and General Employees which has 340,000 members.  The report is strong on the details of why we need to reexamine legislation that has an unhealthy effect on our society.  Inequality is a known negative social development and it has come to define this era for so many.

Less rights, lower wages and benefits result in anti-social situations.  No, not exactly rocket science.

Unions Matter: How the Ability of Labour Unions to Reduce Income Inequality and Influence Public Policy has been affected by Regressive Labour Laws
21-page .pdf copy of report

image: V-2 rocket on trailer, IWM via Wikimedia Commons

(293) Students out there

800px-Old_Finch_and_Kengate_in_Scarborough_RougeStudents usually form a portion of most communities when those communities reach a certain size and come to host insitutions of higher learning.  Generally, this is all to the good.  To be in any way a progressive and economically competitive society, education is advised.  Part of that equation means keeping students, housed, fed, clothed and healthy while they study.  We see friction developing out there on the perimeter where housing is concerned.

Last month in the Toronto Star there was a piece about a city raid in Scarborough on a rooming house near a University of Toronto satellite campus and a Centennial College campus.  Inspectors entered a fairly ordinary-looking home designed for a single family and apparently found “…11 people …crammed together paying $500 to $700 per month each for spaces created by subdividing rooms at 1289 Military Trail.” (GTA section of the Star February 11, 2013)

This conversion is alleged to have been done without permits or inspections and without reasonable regard to the provision of fire exits, smoke and carbon monoxide detectors or proper heating and ventilation.  The owner of the property mentioned above, at the time of inspection, was potentially liable for fines of up to $70,000.  They, and other owners of ad hoc student residences seem reluctant to talk to the media.  Perhaps they may see themselves merely as housing entrepreneurs responding to increased enrollments at nearby schools.  On a bad day, however, they could be seen as slum landlords, taking advantage of a group who may find themselves in a weak position because of their status as students.

Many communities have come to cherish the “eds and meds” portion of the post-industrial economy.  It seems that suburban communities in particular value the presence of colleges and universities for the good paycheques and prestige associated with them.  Schools in turn may find a variety of incentives for expanding in ex-urban areas including cheaper land, physical space and a student-age population ready to study.  Housing in the communities near satellite schools simply may not have adapted quickly enough to student housing needs for a variety of reasons and the schools themsleves may not have invested in their own, on-campus housing infrastructure.  The results seen in the article below model what is happening all over North America in proximity to places of higher learning.  Is it really a great idea to leave housing our future taxpayers, voters, citizens, entrepreneurs, professionals and tradespersons to the random, frequently sloppy efforts of unknown landlords?

No, of course not.  This phenomena must be seen as part of a pattern of suburban-poverty.

Scarborough homeowners charged with running illegal rooming house: bylaw enforcement officers have charged a trio with illegally housing 11 students in a Scarborough home.