niagara economic summit - gncc · – employees bear 50% of the initial cost ($11.4b of the...
TRANSCRIPT
Niagara Economic Summit
KarlBaldaufVicePresident,Policy&GovernmentRelations
October26th 2017
Agenda
1. About the OCC2. Skills and Workforce Development3. Energy4. Bill 148
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About the OCC
About the OCC
• TheOCCconsistsofanetworkofchambersofcommerceandboardsoftrade,providingbusinessleadershipincommunitiesacrossOntario.
• Ourpowerfulnetworkbringslegitimacyandcredibilitytoourwork.Consequently,weworkhardtoprovideexceptionalsupportandservicestoourmembers.
• Ourcomprehensivemembershipbenefitswillcreateadditionalvalueforyourcurrentmembers,attractnewmembers,andhelpyoutoleadtheconversationinyourcommunityonrelevantbusinessissues.
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About the OCC
EXCLUSIVECHAMBERSERVICES
PROGRAMS&FUNDING
PROVINCIAL&LOCALEVENTS
POLICY&ADVOCACY
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2017 Advocacy Wins
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StrengtheningandModernizingWorkplace-DefinedPensionPlans
SmallBusinessAccessServiceOpeningGovernmentProcurementtoSmallBusiness
ModernizingtheConnectingLinksFundingProgram
FinancialLiteracyandSkillsfortheKnowledgeEconomyHelpingSmallBusinessScaleUpthroughtheBusinessGrowthInitiative
ClarificationonCapandTradeSupporttoBusinessSupportingInnovationintheOntarioHealthCareSystemReducingInter-ProvincialTradeBarriersinCanada
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Skills and Workforce Development
The Skills Mismatch
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The Skills Mismatch
• FindingskilledtalentisaconsistentconcernfortheOCCmembership;82percentofmembersexperiencedatleastonehiringchallengeoverthelast6monthsof2016.
• Asaresult,theOCChasmadeskillsandworkforcedevelopmentapriority,releasingareportthissummertitledTalentinTransition:AddressingtheSkillsMismatchinOntario.
– Thisreportidentifiedninekeyrecommendationstothegovernmentinthreeareas:• Experientiallearning• Training• ApprenticeshipFramework
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Co-opEducation Internships
Work-placementprograms Summerjobs/experienceprograms
Mentorships Volunteerpositions
Industry-recognizedin-classprojects Apprenticeships
Academic,clubandindustrycompetitions
Participationinincubators,acceleratorsandinnovationhubs
Experiential Learning
InBudget2017,OntariolaunchedtheCareerKick-StartStrategy,withaninvestmentof$190milliontocreate40,000newwork-relatedlearningexperiences.However,therearecurrentlyoveronemillionstudentsenrolledinsecondaryandpost-secondaryeducation.
Itiscriticallyimportantthatemployersunderstandthebenefitsofintegratingyouthintobusinessmodels,andthegovernmentmustequipemployerswithresourcestofinanceandmanagestudents.
Recommendations1. AddressthelimitedcapacityforSMEstofacilitateexperientiallearningopportunities.2. Driveawarenessofexistingprogramsdesignedtosupportexperientiallearning
opportunities.3. UtilizeexperientiallearningtopromoteinclusiveeconomicgrowthinOntario.
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Training
Astechnologyandinnovationcontinuestobetop-of-mind,theneedforworkersincertainsectorsischanging.Employmentandtrainingplaysacrucialroleinensuringdisplacedworkersareabletotransitiontonewopportunities.
EmployersmustbeconsultedthroughoutthetransformationofEmploymentandTrainingServicestoensurerevisedprogramsarepositionedtoequipparticipantswithnecessaryskillswhichmeetindustrydemands.
Recommendations1. ShiftEmploymentOntarioServicestobemoreclientcentred.2. Evaluatethepotentialforanoutcomes-basedemploymentandtrainingsystemsfunding
model.
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Apprenticeship Framework
SkillsCanadaestimatesthat40percentofnewjobsinthenextdecadewillbeintheskilledtrades,butonly26percentofyoungpeopleareconsideringacareerinthoseareas.
Inaddition,lessthanhalfofthepeoplewhobeginanapprenticeshipprograminOntariocompleteit.ExpandingOntario’sskilledtradeslabourpooliscriticaltothecontinuedtransformationofOntario’seconomy.
Onefocuswouldbetoupdatethejourneyperson-to-apprenticeratioframeworkwhichcurrentlymaintainsanartificiallyhighjourneyperson-to-apprenticeshipratioof3:1,forcingmanycompaniestolayoffapprenticesorleaveapprenticeshippositionsvacant.
Recommendations1. Revisethejourneyperson-to-apprenticeratioframework.2. Enhancesupportforapprenticeshipconsortiums.3. Modernizetheapprenticeshipapplicationprocess.4. ReformtheOntarioCollegeofTrades.
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Energy
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In2016,theOCCsubmittedareportoutliningrecommendationsforthegovernment’sLongTermEnergyPlan.
3KeyPrinciples:
• AffordabilityandCompetitiveness:TheRoadtoEconomicProsperity
• TransparencyandPredictability:AssuringRatepayerConfidence
• FlexibilityandLeveragingInnovation:MaintainingDiversityinEnergySupply
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LongTermEnergyPlan
Today,thegovernmentwillbereleasingthe2017LongTermEnergyPlan.
LongTermEnergyPlan
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Ensurecompetitiveandaffordablerateswhilemaintainingareliable,modernandefficientsupplymixofenergy
• Movetoamorecompetitivecapacitymarket• Procurementofenergyresourcesshouldbeforwardlooking,
technology-agnosticandemphasizeaffordability• Recognizetheuncertaintiesofdemandfuturesandconsiderfuture
supplyneeds
Increasethetransparencyandpredictabilityofelectricitypricing• EnergyplanningmustbecomprehensiveandintegrateClimate
ChangeActionPlangoals• CostsincurredasaresultoftheClimateChangeActionPlanmust
beadequatelyrepresentedonnaturalgasbillsinordertoensurethatbusinesscaneffectivelymanageinputcosts
Leverageexpiringcontractsandutilizeflexibilitytopursuecosteffectivemeasuresinthefuture
• Encouragenon-traditionalenergysourcessuchasrenewablenaturalgasandcompressednaturalgas
• Pursueandmaintainabalancedsupplymix,whileseekingopportunitiesformoreenergystorage
Advocacy Wins
IndustrialConservationInitiative(ICI)Expansion
Aloweredthresholdforparticipationallowsapproximately1,000morecompaniesareeligibletoachievecostsavingsofupto34percent
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OPG Partnership
• TheCanadianCentreforEconomicAnalysis(CANCEA)wascommissionedtoevaluatetheeconomiccontributionthatthePickeringGeneratingStationcouldmaketoOntariooverthenext6years.
• BuildingontheeconomicdatacontributedbyCANCEA,attheendofNovembertheOCCwillreleaseareportdetailingtheimportanceofnuclearpowertoOntario,focusingonthebroadeconomicbenefitsofcontinuedoperationsofPickeringto2024butalsotheenvironmentalbenefits,andsupplychainbenefitsnuclearpowerprovidesforOntario.
• NeststageoftheprojectwillseetheOCCorganize5eventsaboutPickeringcontinuedoperations/theimportanceofnucleartoOntario’seconomyandlow-carbonfuture.
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Bill 148Fair Workplaces Better Jobs Act
Economic Impacts
TwoYearTotalAmount toRedistribute
MinimumWage
Increases
EqualPayProvisions
Vacation andPaid
EmergencyLeave
Scheduling Unionization Combinationofall
$13B $5.2B $1.6B $0.4B $2.2B $22.9B
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Economic Impacts
InSeptember,theKeepOntarioWorkingcoalitionreleasedthefirstandonlyindependenteconomicimpactanalysisoftheimpactofBill148.Theanalysisindicatesthat:Bill148willcreate$23billionhittobusinessesoverthenext2years.• Employerswillabsorbthosecostsasfollows:
– Employeesbear50%oftheinitialcost($11.4Bofthe$22.9B).Employerswilldeterminehowtosqueezethisamountoutoftheirlabourforce
– Consumersbear29%oftheinitialcost($6.7Bofthe$22.9B).Priceincreasesaren'tstimulative
– Businessesbear21%oftheinitialcost($4.8Bofthe$22.9B).The$4.8billion,whichwilltranslateintohighersalariesandemployeebenefits,willturnintoastimulatoryeffectof$11billionovertwoyears
$23billion Hittobusiness- $11billion Stimulative impactfromincreasedconsumerspending$12billion Problemforoureconomy
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Economic Impacts• Consumerscanexpecta50percentincreasetoinflationforthisyearandtheforeseeablefuture,
increasingeverydayconsumergoodsandservicesby$1,300perhouseholdonaverageeachandeveryyear.
• About185,000jobsareexpectedtobeatriskoverthecomingyears.ThiswillgreatlyimpactOntario’smostvulnerableworkers.
– 30,000ofthoseatriskareunder25.– 96,000ofthoseatriskareexpectedtobewomen.– 2.7%ofjobswithinNiagararegionwillbeatrisk.
• Sectorsfacingthehighestrisktojobsinclude(estimatedjobsatrisk):– Manufacturing(16,800jobs)– Accommodationandfoodservices(17,300jobs)– Retailtrades(14,700jobs)– Wholesaletrades(16,000jobs)– Professional,scientificandtechnicalservices(14,000jobs)– Financeandinsurance(13,000jobs)– Privatesectorhealthcareandsocialassistance(8,000jobs)
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Protecting Against Unintended ConsequencesConsideringtherisksoutlinedinthiseconomicimpactanalysis,itisimpossiblefortheGovernmentofOntariotoensurebusinesssuccessthroughoffsetsalone.
Todemonstratetruefairness,theGovernmentmust:• Slowdownimplementationtoavoidunintendedconsequencesand
protectOntario’sjobs,communitiesandourmostvulnerable• ImplementbroadamendmentstoBill148;and,• PresentpolicyoptionsandoffsetstoensureOntario’semployersaresupportedin
transitioningintoBill148.
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