Recently the Ontario government has announced plans to set up an advisory panel in order to consider converting to a portable health and wellness benefits plan, effectively tying health benefits to employees instead of employers. The benefits system will also aim to include vision and dental coverage.
“The growth of ‘non-standard’ employment — including part-time, temporary and contract work, and new ways of organizing work (for example, through digital platforms) — have posed challenges to workers getting access to benefits that are traditionally tied to standard employment,” reports the Ontario government.
“We’re seeing that less than 25 per cent of those who work part time or in precarious jobs have benefits, and many people work multiple jobs throughout their careers. So, we want a benefit system that follows the employee, not the employer,” says Minister of labour, training and skills development of Ontario, Monte McNaughton.
Members of the advisory panel will be announced by spring of 2022 and will consist of those with “sectoral and technical expertise including the structure and administration of benefit plans as well as financial and workplace issues,” Minister McNaughton continues.
The panel was recommended by the Ontario Workforce Recovery Advisory Committee in their final report, released December 2021, and was responsible for several items in the government’s recent Working for Workers legislation, including being the first province in Canada to introduce the ‘Right to Disconnect’, as well as the banning of non-compete clauses.
Professor Amin Mawani, director of the health industry management program at the Schulich School of Business explains that portable benefits “allow workers more flexibility to change jobs or even choose to be without a job while recovering from illness. It helps employees not to be held hostage by employers.
“We often hear stories from the U.S. on how affordable health insurance is only available from employers, thus forcing many employees to work at all cost— and to fall into catastrophic situations when they lose their jobs,” continues Mawani.
Minister McNaughton says that the greatest economic challenge we have in Ontario today is 320,000 jobs going unfilled. “That literally is costing our economy between roughly $25 billion every single year. So, if we want to attract and retain talent here in Ontario, to help our businesses grow, having benefits for all workers is going to give Ontario a competitive advantage economically.”
While far reaching and rapid policy changes are often met with fear that the economy will be adversely affected, Dr. Mawani clarifies that “a healthier workforce is a more productive workforce that can contribute more to the employer’s bottom line.
“Most studies show that the benefits of a healthier workforce (in terms of improved productivity) exceed the cost of keeping the workforce healthier. This applies to even the mental health of employees as businesses cannot afford not to invest in their employees mental health,” Dr. Mawani continues.
Chester Wong, owner of Fuel+ restaurants in Toronto, which specialize in health-focused shakes and food, says, “Portable benefits would not only help local business owners, but all Canadians. We believe the healthcare system should be holistic and not just that seeing a doctor is covered, but medications, follow-ups, and physiotherapy, etc.
“It would also help small businesses run a little smoother and make sure our employees are taken care of as well,” Wong adds.
