Universal Basic Income = Basic Rewards Strategy

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A fundamental premise of any compensation strategy is that the system of rewards has (as noted in our text) “a powerful effect on behaviour.” This effect can be positive if the rewards system is built within the framework of organizational justice. If individuals perceive that rewards provide for fair outcomes resulting from fair processes, they will believe and behave in a way that supports the rewards strategy. This forms part of the psychological contract with the organization.

On the other hand, if individuals do not believe that the rewards system is equitable or fair, their behaviour follows a negative path of dissatisfaction, disengagement, and, ultimately, total disconnection from the organization. This disconnection is either voluntary, in the form of a quit, or involuntary, as the organization has to make the ‘quit’ decision for the individual. The result is that both the physical employment contract, as well as the psychological contract, with the organization are severed completely.

When we expand the concept of the organization to the broader social community, we can see the direct and powerful impact of rewards system(s) provided by government relief programs through the continuing pandemic crisis. Millions of Canadians are out of work, and they face devastating consequences if they cannot afford to pay for basic provisions, such as food and shelter. Financial income programs, such as the Canadian Emergency Response Benefit (CERB), are able to provide some relief to many unemployed Canadians, which allows them to meet, to some degree, their basic needs. This emergency rewards system is not perfect, but it does alleviate some financial pressures. Furthermore, the distribution of the CERB funds appears to be based on a perceived system of organizational justice where the process and the rewards are equitable, meaning that the same rules apply to everyone and the distributed funds are the same.

Does the CERB funding provide for an increase in the psychological contract within our social communities? According to Maslow’s hierarchy of needs, when survival and basic needs are met, individuals are able to move toward social needs. This need is one of social belonging, which, from a compensation strategy application, speaks to membership behaviour and commitment. Once individuals have a sense of belonging, they can progress along Maslow’s theoretical hierarchy to meet esteem and self-actualization needs. When people are able to function beyond meeting their basic needs, they are able to be engaged and committed to the larger community.

With this in mind, the question of continuing funding, such as that provided by the CERB, as a universal basic income strategy for all Canadians, comes into play. It may be time to continue the path to a universal basic income strategy, as companies and economies start the very slow path to recovery from the pandemic. The positive aspects on a global perspective of a basic income strategy are explored in this article posted by the CBC. The article presents an interesting perspective that a basic income strategy provides for more motivation for individuals to work, which seems to link directly to the positive aspects of a psychological social contract. John Michael McGrath provides us with this opinion piece, in which he explores the impact of ongoing economic change, including the need for a basic income strategy, as we move into a post-pandemic world of work.

As noted in both articles, and based on our own pandemic experiences, we know there is no going backward once this crisis is over. The movement forward, however, provides such great opportunities for social change and economic justice. Let’s make it work for everyone.

Discussion Questions:

  1. In your opinion, how does the concept of a universal basic income align with the principles of procedural and distributive justice?
  2. How would a universal basic income provide a remedy for the four causes of reward dissatisfaction?
  3. In your opinion, would a universal basic income increase or decrease the personal motivation of individuals to find paid employment?

Flipping Out Over ‘Contract Flipping’

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Contract flipping is not a widely publicized or known strategy in the employee and labour relations environment.

It is, nevertheless, a staffing scheme that exists and is used with more frequency than publicity.

Contract flipping is the practice of terminating existing unionized employees under one contract and then hiring the same employees for lesser wages and benefits under a new contract. This can be done if the business is sold from one entity to another and/or if there are no successor rights within the existing collective agreement.

While this is not an illegal or illegitimate action on the part of the employer, it is a practice that has little benefit for existing employees. When this happens, the economic impact on individuals can be devastating. On the employer side, however, contract flipping allows for significant savings and labour-related cost reductions.

In British Columbia, contract flipping has become an issue for resolution within the legislative framework. The current government in British Columbia has introduced legislation to limit the practice of contract flipping.

The first approach by the government of British Columbia was targeted in the public sector for seniors’ homes and health care facilities with the introduction of Bill 94.

Click here to read about the proposed changes to contract flipping through Bill 94.

The impact of the proposed legislation has moved into the private sector as well, as noted in a recent article about the impact of contract flipping on janitorial workers employed by BC Hydro.

Click here to read the article.

These articles provide us with the example of how the government becomes a key actor in changing the legislative environment. In this case, the actions of the provincial government in British Columbia come from the premise of social justice when dealing with the matter of contract flipping and its impact on its citizenry.

As of the timing of this post, the current status of Bill 94 is unclear. What is clear, in this case, is the need and the resulting actions of government intervention that are required in order to institute a change in public policy.

Discussion Questions:

  1. Is there a benefit to contract flipping for employees? Explain your rationale.
  2. What are the potential risks to employers who use contract flipping as part of their staffing protocols?
  3. As the HR professional for Alpine Building Maintenance, what advice will you give to the company’s decision makers about the timing of hiring former BC Hydro janitorial workers?
  4. In your opinion, why does the British Columbia government want to change the practice of contract flipping in the health-care (public services) sector?

Legislative Change

Balance made of people
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We are lucky, as Canadians, that we live in a society that tries to provide emergency and crisis support when we need it.  We are also very lucky that these services are provided by skilled and qualified professionals who take on the role of First-Responder when emergencies and crises happen.  First-Responders are usually fire fighters, paramedics, and police officers, among others, who take care of us when we need them the most.  On the other hand, who is taking care of First-Responders when the level of crises become insurmountable for those who provide emergency services to us?

There has been a visible and pro-active push through social media and general media campaigns to promote and discuss the impact of on-going crisis response as experienced by First-Responders in the form of Post-Traumatic Stress Disorder (PTSD).  While the level of awareness about the impact of PTSD on First-Responders is increasing, so too has the need to have an increase in the formal recognition of PTSD as a ‘legitimate’ work-related illness in Ontario.  To date, First- Responders impacted by PTSD have not been able to access intervention and support through traditional worker’s compensation and benefits due to the stigma associated with PTSD as a mental illness and the lack of recognition that their PTSD stems directly from the workplace.

The issue of PTSD may affect thousands of workers from different unions.  This has provided an opportunity for several unions to come together and push for much needed legislative change in the province of Ontario.

Click Here to Read the Article

The power and positive impact of the collective voice is clear.  On April 6, 2016, “Bill 163 Supporting Ontario’s First Responders Act (Posttraumatic Stress Disorder) 2016,” received Royal Assent.

Click Here to Read the Bill 

Though the path to make legislative changes may be difficult, it is so important to ensure that successful change is possible and that the end-result truly provides a benefit to everyone.

Discussion Questions:

  1. Why does PTSD need to be recognized as a work-related illness through Bill 163?
  2. Outline the steps that are required for an issue to move through a legislative process and to become law.
  3. What types of programs can an employer put into place to provide resources and support for workers who may be impacted by PTSD?