Published: December 3, 2021

Options on B.C.’s Permanent Paid Sick Leave Program

CHBA BC is the leading advocate for the residential construction industry, representing 2,200 member firms through our eight (8) locally affiliated home building associations. Our members are small- and medium-sized businesses who are builders, renovators, tradespeople, service professionals, and more.

 

We have been actively engaged in the British Columbian government’s consultation process for their permanent paid sick leave program and understand that at this point in time, the Ministry of Labour has released an options paper for further public comment that presents minimum number of days for paid sick leave: three, five or 10 days.

 

The members of CHBA BC represent an industry that is one of the largest employers in the province. In 2020, the residential construction sector contributed 183,948 jobs, creating $12 billion in wages and $22.6 billion in investment value. As a prominent employer in the province, we are directly interested in a sick leave program and our members will be affected stakeholders. While CHBA BC and its members have completed the options paper survey found online, the comments contained herein could not be provided based on the structure of the survey which sought feedback solely on the appropriate number of paid sick days.

 

There are additional considerations beyond the minimum numbers of days that the industry would like to share in this submission.

 

We are encouraged to read that the made-in-B.C. permanent paid personal illness and injury leave is intended to be fair, balanced and reasonable for everyone. CHBA BC and its members agree that it is important for workers to be able to take the time needed to truly overcome their illness and injury without concern for losing wages. Supporting healthy British Columbians is a mutual interest of the industry, and the pandemic has demonstrated the need to ensure workers stay home when sick to avoid spreading illness to others.

 

That said, members have expressed concern that the program will be at the employer’s expense. Even with the minimum number of days of paid sick leave – three days – there are significant costs associated with covering wages and lost productivity, should majority of the employee base take advantage of this program, particularly for hourly staff. Salaried staff are of lesser concern as paid sick days are usually provided and work is usually completed regardless of time off.

 

To illustrate the magnitude of cost, in one member’s case, providing the minimum number of three paid days would result in approximately $33,120 in annual wages that would have to be paid across its organization. Further, because these are considered wages, the Employer Health Tax likely applies this amount, creating an additional $645.84 in costs. This brings the total cost off the bottom line to $33,765.84.

 

This is significant, especially to small- and medium-sized residential home builders in the province. We submit, consideration should be given to a provincial tax credit or a sick days rebate, similar to the GST rebate, and equivalent to the number of sick days issued to people within a specific annual amount. Those making more than the specified amount, should not qualify.

 

While we see the necessity of a paid sick leave program for obvious health risks, there are significant costs associated with each sick day to be paid that need to be mitigated. We believe the government should broaden its consultation to understand what kind of supports employers would need (such as the ones identified herein) that would assist their ability to meet any minimum number of paid sick days.

 

Furthermore, CHBA BC members are curious to know how to interpret vaccination policies against a paid sick leave program. Although we do not have any recommendations on this, we do have questions on whether the government is considering what role health, safety and vaccination plans have on the eligibility of paid sick leave days and any reimbursements, credits and/or tax relief that are introduced.

 

We trust you will find our comments helpful and request that CHBA BC be kept apprised of this important initiative as new milestones are reached. Thank you again for the opportunity to participate in the important consultation process.

 

If you have any questions or wish to have a follow up discussion, please contact the undersigned.

 

Sincerely,

     

Carmina Tupe, MCIP RPP

Director, Policy & Government Relations

The Canadian Home Builders’ Association of British Columbia

E: carmina@chbabc.org | M: 647-326-6181

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