Employees seek definition of rights in midst of economic slowdown
As unprecedented layoffs hit companies, workers urged to keep up on bosses’ obligations
Cineplex Odeon employees asked to take a 60 per cent pay reduction or face lay off.
Dollarama employees asked to take banked vacation if they miss work due to illness.
Casino Woodbine workers wondering why their multi-billion-dollar employer can’t top up EI payments.
It’s all part of an unprecedented economic slowdown in the face of the COVID-19 pandemic — one that has some workers wondering what will happen to them in the name of cost reduction.
“All last week I basically didn’t get a wink of sleep,” said Theo Lagakos, a now laid-off employee of Casino Woodbine and the president of the Public Service Alliance of Canada Local 533. “From the moment I wake up to the moment I go to sleep, I am getting phone calls from members.”
As more job losses — even temporary ones — hit workplaces across the province, labour lawyers say employees need to know their rights — and their bosses’ obligations.
It’s an especially precarious moment for those who had little power in the workplace to begin with, says Niiti Simmonds, a lawyer with Toronto-based labour law firm Cavalluzzo LLP.
“I think that’s a real problem that we’re going to encounter. I think workers in the workplace would benefit from talking to each other,” she said.
“Even if you don’t have a union, now is a good time to start talking to your co-workers about what you think is safe and what you think is fair in terms of pay cuts.”
Take Cineplex Odeon, where full-time employees were asked last week to “consider” taking a significant wage reduction to avert job loss. Part-time employees are now facing layoffs as theatres close until April. Many Cineplex workers don’t belong to a union.
In a statement, spokesperson Sarah Van Lange said Cineplex executives would be taking 80 per cent pay cuts and would also provide lump sum payments to part-time workers, many of whom do not qualify for EI.
“Our current intention is to rehire all of them when our operations resume,” she said.
As for being asked to take a significant pay cut to keep a job — that could qualify as constructive dismissal.
“A pay cut beyond 20 per cent of an employee’s total compensation is generally considered a constructive dismissal,” Cavalluzzo’s Simmonds said.
But for workers, that’s often difficult territory to navigate — especially in the middle of a pandemic.
“Practically, I question whether an employee, in the context of COVID-19, would choose to pursue a wrongful dismissal litigation instead of continued employment at reduced pay,” Simmonds said.
“Strategically, workers could benefit themselves by consulting with a lawyer about their situation. They could also consider indicating to the employer in writing that they aren’t consenting to the pay cut on a permanent or long-term basis.”
Questions also weigh heavy for those whose employer is still operating as an essential service.
At Dollarama, for example, employees who must self-isolate were recently told to use banked vacation days, according to a recent internal communication shared with the Star.
“Their favourite answer is, ‘It is what it is,’ ” one employee told the Star.
Directing workers when to take holiday may be frustrating — but it is legal, says Toronto employment lawyer Lior Samfiru. “The employee may be unhappy about that but that is something employers are allowed to do.”
Dollarama will remain open as an essential service in Ontario; its latest financial report from December reported increased store sales worth almost $950 million.
The company says it’s giving store-level and warehouse employees a 10 per cent wage increase in response to the pandemic, through to July.
In response to questions about paid sick leave, a spokesperson said the company’s “primary goal is to ensure our employees do not have a significant gap in earnings when absent from work.”
“At this time, we are operating on a case-by-case basis and considering the different circumstances among our employee population of over 20,000,” the spokesperson said.
Casino Woodbine’s Lagakos says he understands the constraints faced by small businesses. But he questions why some large employers are not stepping up — including his own. At Casino Woodbine — which is operated by One Toronto Gaming — some 1,100 employees are being temporarily laid off while facilities are closed.
Relying solely on EI income will especially hurt those who rely on tips for a substantial part of their wages — including the facility’s 700 table dealers, Lagakos said.
“You’re talking about millions and millions of dollars in revenue they generate,” he said.
“It’s not good enough that the employees at Casino Woodbine are being laid off and they’re only receiving EI benefits. It’s not good enough for them, and I believe it’s not good enough for people in general.”
One Toronto Gaming, a subsidiary of Great Canadian Gaming which operates casinos across the country, did not respond to the Star’s request for comment.
Samfiru says in a minority of cases, he’s seeing “employers that are trying to use this situation to let people go.”
“(But) most of what we’re seeing is simple ignorance about their obligations.”
Ultimately, Simmonds says workers need answers from government.
“This is the perfect time to introduce something like a universal basic income as well as a corresponding increase to social assistance rates,” she said. “Considering the massive layoffs we are seeing, workers need measures that aren’t tied to their employment.”
While the federal government has promised payroll subsidies to small employers, that won’t help laid-off workers, or those on unpaid sick leave.
“If you want people to stay home to save lives, people need money to provide for their basic necessities now,” Simmonds said.
“Not trickled down through employers in a few weeks from now.”