Chapter 3

Institutional Aspects
of the Labour Market

© 2006 by Nelson, a division of Thomson Canada Limited. 1

In this chapter you will learn to:
1. The jurisdictional responsibilities of the federal
and provincial governments with respect to the
labour market
2. To list the labour standards that have been
enacted by various levels of government
3. To describe the history of Employment
Insurance in Canada
4. To discuss the trends and characteristics of
union membership in Canada

© 2006 by Nelson, a division of Thomson Canada Limited. 2

Jurisdictional Responsibilities of
Federal and Provincial Governments:
• Labour markets are heavily regulated by
government
• The Canada Labour Code legislates
employment standards and labour
relations practices for industries that fall
under federal jurisdiction
• Various provincial labour laws regulate the
working conditions of most Canadians
• Provinces are responsible for property
matters and civil rights
© 2006 by Nelson, a division of Thomson Canada Limited. 3
Labour standards that have been
enacted by governments:
• Employment standards
• Human rights
• Health and safety
• Worker’s compensation
• Employment insurance
• Union-management relationships

© 2006 by Nelson, a division of Thomson Canada Limited. 4

Employment Standards:
• Minimum age
• Hours of work
• Overtime pay
• Vacations with pay
• Statutory holidays
• Minimum wage rate
• Pay equity
• Severance pay
• Other standards – various leaves of absence
© 2006 by Nelson, a division of Thomson Canada Limited. 5
Minimum Wage Rates by
Provinces and Territory 2004

© 2006 by Nelson, a division of Thomson Canada Limited. 6

Minimum Wage Rates by
Provinces and Territory 2020
https://nethris.com/legislation/minimum-wage/

7
https://www.retailcouncil.org/resources/quick-facts/minimum-wage-by-province/

8
Human Rights:
• The United Nations Universal Declaration of Human
Rights (1948) states the principle of equal rights for
all individuals regardless of race, religion, gender or
language
• Legislation in all jurisdictions in Canada prohibit
discrimination based on race; national, ethnic, or
place of origin; colour; religion or creed; marital
status; physical and mental disability; sexual
orientation; and gender
• Employment equity: A work environment in which all
barriers to employment have been removed and
equitable treatment of employees exist
© 2006 by Nelson, a division of Thomson Canada Limited. 9
Describe the History of
Employment Insurance in Canada:
• Employment and Social Insurance Act (1935) –
led to a change in the constitution so that the
federal government had exclusive jurisdiction
• Updated in 1955 and named the Unemployment
Insurance Act
• Provided income support to individuals during a
temporary disruption in earnings
• Contributions came from both the employer and
employee

© 2006 by Nelson, a division of Thomson Canada Limited. 10

Describe the History of Employment
Insurance in Canada (cont’d):
• Legislation updated in 1971 to cover more
employees
• Eligibility requirement were reduced;
benefits were extended
• After 1971 changes included: basing
eligibility requirements on the
unemployment rate in the area, reducing
benefits to 60% of earnings (changed to
55% in 1997)

© 2006 by Nelson, a division of Thomson Canada Limited. 11

Describe the History of Employment
Insurance in Canada (cont’d):
• Improved maternity leave, adoption leave
and some paternity leave benefits
• The Act was updated in 1997 and became
the Employment Insurance Act
• Changes included basing claims on
number of hours worked, longer qualifying
time for new labour force entrants and a
change in claw back provisions

© 2006 by Nelson, a division of Thomson Canada Limited. 12

Trends and Characteristics of
Union Membership in Canada:
• Prior to labour standards many workers
relied on group pressure – trade unions –
to improve their working conditions
• About 4 million Canadian employees are
members of trade unions
• Approximately one-third of full time
workers and one quarter of part time
workers are represented by unions

© 2006 by Nelson, a division of Thomson Canada Limited. 13

Trends and Characteristics of Union
Membership in Canada (cont’d):
• Union density: The ratio of the number of
employees belonging to a union to the
total number of paid employees
• The union density rate for public
employees was 72.7% in 2003 while it was
18.1% for private sector employees
• Union density varies by occupation and
province

© 2006 by Nelson, a division of Thomson Canada Limited. 14

Summary:
 The jurisdictional responsibilities of the federal
and provincial governments with respect to the
labour market
 To list the labour standards that have been
enacted by various levels of government
 To describe the history of Employment
Insurance in Canada
 To discuss the trends and characteristics of
union membership in Canada

© 2006 by Nelson, a division of Thomson Canada Limited. 15