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Bill could hurt Ontario staffing firms

March 09, 2009

Legislation to amend Ontario's employment standards act, Bill 139, may hurt staffing firms, according to the Association of Canadian Search, Employment and Staffing Services.

"We believe that most of the proposed amendments in the bill are very positive and constructive," Mary McIninch, director of government affairs for ACSESS said in a press release last week. "We are all working towards a common goal to protect workers. Some of the new rules fail to provide any meaningful benefit to low-wage workers and will significantly damage an industry employing 300,000 people a year in Ontario."

Portions of Ontario Bill 139 that raise concerns include proposals to:
' Prevent staffing firms from charging conversion fees for temporary workers after six months.
' Stipulate that temporary employees remain employees of staffing firms even if not on assignment. "It creates a different and higher standard for staffing company employers and creates a higher cost of burdens and liabilities for temporary staffing companies compared to all other employers within every other industry," according to ACSESS.
' Rule that a temporary worker has been terminated from employment at a staffing firm after 35 weeks if the worker has not received an assignment. This would also create a separate and higher standard for staffing firms above other industries, according to ACSESS.

ACSESS is meeting with Ontario Labour Minister Peter Fonseca on Wednesday to discuss concerns with the bill. In addition, a hearing on the bill is set for March 25.

Ontario accounts for more than half of Canadian staffing industry revenue. Statistics Canada said 57% of staffing revenue came from Ontario in 2006, the most recent year available.