Canada’s Supreme Court upholds municipal taxing powers

OTTAWA—In a decision that will no doubt be welcomed by city councils facing tough budgeting decisions, Canada’s high court has rejected a bid by a B.C. paper company to reduce its municipal tax bill.

Municipal councils don’t have “carte blanche” to tax their citizens, but the power of courts to overturn tax rates set by these councils is very narrow, the Supreme Court of Canada says.

Catalyst Paper Corp. had fought to overturn the municipal taxes imposed by North Cowichan council. It is the biggest industry in the Vancouver Island municipality.

In rejecting Catalyst’s appeal, seven high court judges reinforced the broad power of elected officials to balance business and residential taxes as they see fit, according to provincial laws.

“Municipal councils have extensive latitude in what factors they may consider in passing a bylaw,” wrote Chief Justice Beverley McLachlin for the unanimous panel.

She said councillors “may consider objective factors,” such as how much water or other municipal services are consumed by a business. “But they may also consider broader social, economic and political factors that are relevant to the electorate.”

The decision says councillors, not courts, are in the best position to weigh all the competing considerations and they deserve deference by judges.

Catalyst, the largest manufacturer of specialty paper products in western North America, had argued it bears too big a load of the overall municipal tax burden.

According to local news reports, Catalyst’s 2010 tax bill was $5.5 million and its 2011 bill was about $5.4 million. The company is also facing global debt and market losses that puts about 500 local jobs at risk.

As the population on the southeastern shore of Vancouver Island has grown, subdivisions have sprung up, and so has the need for roads, water lines, schools, hospitals and other municipal services.

Residential property values have soared, while the value of the Catalyst property has remained stable.

However, the municipality, not wishing to hit long-term fixed-income residents with massive tax hikes, was for years increasing the relative tax burden on Catalyst to one of the highest in the province.

In court, Catalyst argued it has its own sewer and water systems and its own deep-sea port, and its operation has been losing money.

It says it’s footing a “grossly disproportionate” part of the property tax bill and cannot just pick up operations and move.

“Its choices are to stay and pay or to close the mill,” said a court summary of Catalyst’s arguments.

Since 2003, the town has reduced the rate on Catalyst slightly. In 2007, Catalyst paid 48 per cent of the total municipal tax burden. By the time the case was heard, that was down to 37 per cent, but not as much as Catalyst demanded. It argued taxes should be related to municipal services consumed.

The company’s challenge of a municipality’s right to pass what it called an “unreasonable” bylaw met with defeat B.C’s trial and appellate courts.

In agreeing with those lower rulings, the Supreme Court’s decision distinguished between taxes and “fees” for services.

It said the delivery of services could be “a factor” but it is up to a council to weigh against competing considerations.

The high court said the council, unlike a court, is not obliged to give reasons for taxation decisions.

 

http://www.thestar.com/

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So, who got the best returns on their housing buck?

6033528 So, who got the best returns on their housing buck?

If you were just in it for the money, you’d have done better buying a swimming pool’s worth of oil back in 2006 than picking up a house in Mactaggart.

Storing all that crude in your back-yard might have made the people next door angry, but five years later the price would have been up by 28 per cent.

That lovely pile near Whitemud Creek? Typically, its value rose by only 21 per cent, the least of any Edmonton neighbourhood and half the city average.

But if you had sunk your cash into a place in Rossdale, or farther down-stream in Beverly Heights, you’d have made out like a bandit – average values in those areas jumped 55 per cent, blowing stocks and oil out of the water.

These are some of the findings from the latest assessments mailed out for 326,500 Edmonton properties at the beginning of January, based on estimates made last July 1.

Although one-year values for single-family houses (the Journal figures don’t include other types of homes) are down 1.7 per cent, results vary between a 10-per-cent rise in Secord and a similar-sized drop in Canora.

The spread is even larger over five years.

While the average neighbourhood value rose 41 per cent in that time, the biggest growth came in the northeast, where eight of the 12 districts that had increases of more than 50 per cent are located.

That doesn’t surprise real estate analyst Don Campbell, who says this area has cheaper housing that’s attractive to many people coming to Edmonton for its many job opportunities.

“When you have a workplace move in (to a city), the majority want to rent for three years. They probably, as new migrants, went to places that were a little less expensive . and they just stayed in the neighbourhood.”

As well, the lower-cost homes in these older communities have more room for prices to rise, especially if the owners want to do renovations or put in sweat equity, the Vancouverbased author says.

It’s a different picture in the developing southwest suburbs, site of four of the six neighbourhoods that saw average values rise by less than 30 per cent.

“The places that have gone up the least are the newest areas,” says Campbell, who has investments in Edmonton. “New properties never increase as quickly as older resale properties, because you’re paying full market price, possibly a little bit more.”

However, one big advantage of buying a residence over other investments is that owners can put down a fraction of the purchase price and borrow the rest, magnifying the amount of any increases they see.

Campbell, who expects strong returns on Edmonton property starting next year, suggests prospective buyers look at homes within 800 metres of new LRT stations as one factor that will lead to higher returns in the long run.

He cautions that city assessments, always at least six months out of date, aren’t necessarily a good indicator of current prices.

“If your assessment is higher than you expected, don’t get too excited, and if it’s lower than you expected, don’t get too excited, because it’s just a picture in time on which they tax you.”

Other experts say the five-year figures are skewed by the mindboggling 64-per-cent assessment increase recorded during the 2007 boom, when the typical Edmonton house was worth $400,000, compared with $357,000 today.

But don’t take any real-estate reversals since then too personally. While your family castle might have declined a piddling few thousand dollars, spare a thought for Oilers owner Daryl Katz.

In 2009, his sprawling mansion along the edge of the North Saskatchewan River valley, reputed to be the most valuable house in the city, was assessed at $14.8 million.

Now it’s only worth $13.7 million, a drop of $1.1 million. He could hire another Theo Peckham for that.

 

http://www.edmontonjournal.com/

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Residents find reasons to love their neighbourhood, rich or poor

6032954 Residents find reasons to love their neighbourhood, rich or poor

EDMONTON – It’s a tale of two cities in one — a wealthy south-side suburb with Edmonton’s highest average house values, and a struggling north-side neighbourhood with the city’s cheapest homes.

The chart-topper is Westbrook Estates, where multi-storey houses that routinely cost more than $1 million nestle between Whitemud Ravine and the Derrick Golf and Winter Club.

Modest Parkdale is at the other end of the scale, a century-old district where wood-frame bungalows nestle between the CN tracks and the derelict Cromdale Hotel.

The area also features higher-than-average rates of crime, low-income households, transience and unemployment.

But Richard Williams wouldn’t put down roots anywhere else.

“It’s a wonderful neighbourhood. I have lived in much more expensive communities, and I moved here by choice,” the British expatriate says.

“This is one of the most welcoming and friendly communities I have lived in.”

Williams arrived in Parkdale about six years ago, but left partly because of concerns about the crime and disorder that still mar the area’s reputation.

He suffered a break-in, and prostitutes worked close to his home.

“I thought it would be good to move, but moving to a nicer area where people proved to be less friendly turned out to be worse. It was cliquey.”

So he returned, a decision aided by the growing arts scene that’s one sign of the improved social and — with the city spending millions of dollars to rebuild the 118th Avenue streetscape — physical infrastructure. The low cost of housing is a big attraction for many people, he says.

The city’s latest average assessed value for single-family homes in Parkdale is $206,311, or $150,000 less than the Edmonton average.

“How affordable the area is encourages young families and others looking … to buy a house for the first time.”

Williams likes being close to Rexall Place, Commonwealth Stadium and its new recreation centre, his job downtown and the Kinnaird Ravine, where he can walk his dog and take picnics into the river valley parks.

The nearby LRT and good bus service take him quickly where he wants to go.

Local amenities are also what attracted Roger Carry to move to Westbrook Estates, where he has lived since 1981.

“It’s a super community. Good schools, good kids. The golf club had nothing to do with it. … I golf at the Mayfair.

He wasn’t aware Westbrook’s current average $967,000 assessed house value is the highest in Edmonton.

The area reached a milestone last year when it became the first neighbourhood where the average topped the $1-million mark, but declined slightly as part of the city’s overall 1.7-per-cent drop in assessment values.

Westbrook contains some of Edmonton’s most valuable properties, including the three-storey home of former Oilers co-owner Bruce Saville. The home, which backs onto the Whitemud Creek, is assessed at $8.6 million.

But Carry says people don’t joke with him about living in a high-end area. “They may have earlier on, I’m talking 30 or 40 years ago, but they don’t now.”

While house values in Parkdale will never hit the heights reached in Westbrook Estates, Williams says his community is becoming more and more desirable.

“I do see many encouraging signs. Many families out on the streets, they recently had the Deep Freeze festival where they closed down 118th Avenue for a couple of days,” he says.

“There’s work to go. It’s not all picture-perfect … (but) some time ago Whyte Avenue was like that.”

How market value is assessed

Edmonton, as required by provincial law, started using market value assessment in 1999.

City assessors annually determine values at which each property might have sold as of July 1, which is used to determine that location’s share of Edmonton’s total property taxes for the following year.

Assessors look at various factors, including location, sale prices for similar homes in similar areas, lot and house size, building condition and age, size and style of garage, if the basement’s finished and any special features.

But the property assessments mailed out in January can vary from a home’s actual selling price.

For one thing, they are based on conditions six months earlier, and the market may have changed.

As well, assessors don’t reinspect every house every year, so conditions at individual properties can change without the city’s knowledge.

 

http://www.edmontonjournal.com/

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Too early to retire

In Saskatchewan, a couple we’ll call Edward and Nancy, both 61, fear they will be impoverished in retirement. Today, they live a simple life with few frills. Ed-ward, who receives a small company pension and Canada Pension Plan disability payments of $1,103 a month, has not worked in his field for two years. Nancy, an administrative assistant, brings home $2,285 a month that boosts total monthly family income to $5,034 after tax.

Looking ahead to the day that Nancy retires, they worry they will not be able to sustain much of a life without her in-come. They want to sell their $300,000 house very soon, move to Alberta to be near their children and spend their spare time driving around the countryside to enjoy the simple pleasures of life.

“We have not built up enough retirement savings,” Nancy says. “We are thinking of downsizing our house and using some money we get to add to our income. Really, we need guidance to make the most of the time we have together.”

Family Finance consulted Graeme Egan, a portfolio manager and financial planner at KCM Wealth Management Inc. in Vancouver. “This is a case in which the couple’s future is really about the resources they can pull together,” he says.” They have an outstanding six-figure mortgage and fairly limited assets. It’s late, but there are some things we can do to make the most of their opportunities. It is a question of timing Nancy’s retirement, timing the sale of their home and getting the most they can out of their investments.”

TIMING RETIREMENT

It’s not possible for Nancy to quit work yet, Mr. Egan says. Her combined pensions from her $84,000 RRSPs and CPP would be about $1,000 a month before tax, which is $1,285 less than what she brings home today from her job. Even if they were to harvest some capital from their house, say $150,000, and invest it, she could not make up the income loss from quitting work.

If she works to age 65, she will receive estimated CPP benefits of $530 a month in 2011 dollars, a little more if she gets a raise before 65, a little less if she quits and does not draw benefits until 65. At 65, Edward’s $1,103 monthly disability cheque will drop to CPP benefits of $960 a month in today’s dollars. At 65, they will each get full Old Age Security benefits, currently $540 a month.

Their total age 65 pension income, excluding any investment income generated by cash liberated through downsizing, would be $12,000 a year from Edward’s registered retirement income fund, $9,000 from his company pension and, allowing 2% annual inflation increases to CPP and OAS, a total of about $33,000 from the two public pensions, and $6,800 from registered savings for total age 65 income of $60,800 a year. If they sell their house and realize $150,000 after selling and moving costs, then, if they can get a 4.5% yield from a corporate-bond fund or a portfolio of stocks with strong and sustainable dividends, they could add $6,750 a year for pre-tax annual retirement in-come of $67,550.

After tax at an estimated average rate of 20%, they would have $54,040 to spend each year, or $4,503 a month. If they take property tax, savings, mort-gage and debt-service costs out of their expenses and add back $1,000 a month for rent, their living costs would be about $3,100 a month. That would be a supportable level of spending. They would have a surplus with which to buy a newer car, travel and have extra funds to replace health benefits they currently receive from Nancy’s employment.

A move to Alberta would probably mean their equity in their present house, $172,000 less selling expenses, would not go far. It would be better to rent. That would allow Edward to skip outdoor chores, which are hard given his medical problems. For now, in financial terms, the best course is to stay put.

Edward and Nancy owe $14,200 on credit cards, with annual interest of $1,420 a year. Repayment of purchases drives the bill up to $3,000 a year. They can borrow what’s due on their line of credit at a current rate of 4% and save $850 a year.

INVESTMENT MANAGEMENT

Edward and Nancy have about 80% of their registered savings in equity mutual funds and the balance in fixed-income funds. That’s too high an exposure to stocks, especially for a person of his age, health and dependence on savings. The portfolio should be moved over the next four years to a balance of 60% to 70% fixed income and 40% to 30% in stocks.

It’s too soon to begin cashing in their retirement savings. Both Nancy’s $84,000 of registered savings and Edward’s $170,000 RRSP have lost value from declining stock values. If they did retire soon, they would have to draw more out of their investments, leaving less for the future.

Nancy should therefore continue to work and delay her retirement to 65. Working another few years will boost her CPP and her retirement savings contributions. In four years, stock markets may recover at least some of their value, Mr. Egan says.

 

http://www.globaltvedmonton.com/

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Edmonton property assessments prompt flurry of calls

 Edmonton property assessments prompt flurry of calls

EDMONTON – More than 1,860 people have already called city tax assessors with questions about their property assessments, city officials said Friday.

That’s in addition to people who called 311 and had their questions answered without being referred on for a possible adjustment. Staff are trying to return all queries within three business days, but “they are definitely busy,” said Rod Risling, branch manager for taxation and assessment. “We’re managing the call volume fairly well. Now is the time to call.”

Property assessments were mailed out Jan. 3.

The assessment is used to set each homeowner’s share of the city’s total tax bill once the appeals period is passed and the city finalizes it’s budget. This year, the city intends to collect slightly more than $1 billion in property taxes, which is an increase of 5.4 per cent from last year.

Most people reporting errors are letting the department know they haven’t received their assessment yet, or setting up a monthly payment plan, Risling said.

There is no fee to call a city assessor with a question if a homeowner believes there is an error in their assessment. Last year, 170 people had their assessments reduced that way, Risling said. To reach a city assessor, homeowners can call 496-6388. That line is staffed around the clock.

An informal query to the city saves homeowners the expense of filing a formal complaint with the provincial assessment review board. Filing a provincial complaint costs $50. This year, the deadline is March 12.

Risling said it’s more likely a tax assessor can correct a problem without the $50 fee if the homeowner calls now than if they wait until nearer the deadline, since many adjustments require a visit to the property.

 

http://www.globaltvedmonton.com/

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Using current political capital for conflict-resolution

‘Sri Lankans’ approval of their President’s job performance likely reflects their happiness to finally have peace in their country and a vision for the rebuilding of their nation. The government’s lifting of Emergency laws has earned praise from the US and other Western nations and suggests Sri Lanka is trying to leave its violent past behind. It will be imperative for the Sri Lankan government to use this political capital as it works to resolve conflicts within the country and reintegrate disenfranchised portions of the population.’ Peter Cynkar – ‘Sri Lankans back the Rajapaksas amid Western criticism says poll’ Lanka Independent – Sept 2, 2011

The lifting of the Emergency laws by the President has been met with acclaim by many nations in the world. After the defeat of the LTTE with the able leadership of our President as the Commander in Chief of the Forces assisted by the experience gained in the battlefield by Defence Secretary Gotabhaya Rajapaksa and the Commanders of the three forces, the President was able to usher in an era of peace and tranquillity to our island nation, for which the large majority of Sri Lankans are forever grateful. It is regrettable that a very small minority of Sri Lankans due to their political inclinations have forgotten the suffering the Sri Lankan nation underwent during the three decades of brutal terrorist activities by the barbaric LTTE.

Foreign diplomats

Listening to the speech made by the Defence Secretary at the launch of the ‘Report on Humanitarian Operation – Factual Analysis July 2006 to May 2009,’ addressing the foreign diplomats and other dignitaries in Colombo, in impeccable English, without making a single mistake displaying an absolute mastery of that language and making out a case against the infamous Channel 4 video and the Darusman Report, I felt the patriotism generated in the heart of this Southerner and the ingratitude of some Sri Lankans for the great achievement of defeating terrorism, in which Gotabhaya Rajapaksa played a major role under the direction of our President Mahinda Rajapaksa. The picture of the President kissing the soil of our motherland immediately after alighting from the plane at the Katunayake Airport after the defeat of the LTTE came to my mind in vivid detail exhibiting the patriotism of our President.

As Peter Cynkar states in his article ‘Sri Lankans back Rajapaksas amid Western criticism says poll’, Sri Lankans are grateful for the leadership of the President as they finally achieved peace after defeating the LTTE, described as the world’s most ruthless terrorist organization thereby creating an environment where the Sri Lankans of all walks of life are able to live without fear of suicide bombings and other atrocities committed by the LTTE.

Print-electronic media

I have decided to write this piece after observing the criticisms of the present regime in Sri Lanka found in the print and electronic media that are being made almost daily. As Catullus said in Carmina. ‘Cease to expect to win men’s gratitude; To think that human beings can be grateful.’ May be the President could say with Henry Fielding, as Fielding stated in Ton Thumb the Great; ‘When I am not thanked at all, I am thanked enough; I’ve done my duty and I’ve done no more.’ It is very relevant to note here what Edmund Burke said in ‘Thoughts and Details on Scarcity’: ‘And having looked to government for bread, on the very first scarcity they will turn and bite the hand that fed them.’ I am indebted to Former Justice Dr A R B Amerasinghe for these quotations taken from his work ‘Beautiful Inspiring Interesting Words’ (2005).

John Owen in his Epigrams said: ‘God and the Doctor we alike adore; But only when in danger not before; The danger over both are alike requited; God is forgotten and the Doctor slighted.’ From all these sayings it is obvious that human nature is such that gratitude is a rare commodity in human beings. But the same cannot be said about the majority of the Sri Lankan people who have overwhelmingly displayed their gratitude by returning the present regime to power by a vast majority of votes.

Emergency regulations

As international acclaim comes in the wake of the lifting of the Emergency regulations, as Peter Cynkar in his article quoted at the beginning of this piece states, the Sri Lankan government should use this political-capital to resolve conflicts within the country and re-integrate disenfranchised portions of the population. The report of the Lessons Learnt and Reconciliation Commission (LLRC) is due shortly and its recommendations may be useful in the resolution of many problems facing the nation on ethnic issues.

As the President has often said, while constructive criticism is helpful and appreciated, destructive criticism has to be rejected and despised. As Winston Churchill said in his speech to the House of Commons in 1941: ‘I do not resent criticism, even when, for the sake of emphasis, it parts for the time with reality.’ As the Bible says no man is infallible. Every person has faults. The people who criticize others have their own faults.

A patriotic person would engage in criticism constructively pointing out the mistakes and suggesting the solutions to correct such errors. Such criticism is useful and should be respected at all times. Freedom of Expression must be freely available in a democratic society.

Civilized society

Criticism should be met with suitable non-violent response in a civilized society. Recently a few articles appeared in the local print media and also on some web sites, which were critical of some members of the judiciary in Sri Lanka, which criticisms were not well founded. Such irresponsible criticism should be avoided at all costs as it erodes the respect of the public for the judiciary and thereby undermines that hallowed principle of the Rule of Law which is detrimental to the well-being of a democratic society.

It is time that all Sri Lankans irrespective of ethnicity and other differences unite for the peace, tranquillity and future prosperity of the nation, shedding petty differences. The present regime under the able leadership of our President would undoubtedly usher in economic prosperity to our country as it had already ushered in peace and tranquillity ridding our nation of three decades of unabated terror. Let me conclude with that beautiful thought of Bahaullah, revered religious leader of the Bahais thus: ‘We are the fruits of one tree; and the leaves of one branch. Deal ye one with another with the utmost love and harmony, with friendliness and fellowship… So powerful is the light of unity that it can illuminate the whole earth.’

http://www.dailynews.lk/2011/09/08/fea01.asp

 

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Pendulum must swing on jobs

THERE is some good among the bad economic news South Africans have been inundated with lately: no local debt crisis, no sub-prime collapse, a world-class, stable banking system and a government budget process that is transparent.

However, most of our major trading partners are still suffering from the fallout from the economic downturn and the US debt-ceiling problem, so we cannot afford to have policy strangling our fragile economy.

The numbers are troubling.

Over a three-month period, 174 000 jobs have been lost while only 7 000 have been created, with the net effect of 167 000 jobs lost.

The unemployment rate (using the narrow definition that excludes those who have given up seeking work) is at 25.7 percent – about 4 538 000 job seekers. Adding those who have given up looking, the rate is about 38 percent.

This means that since the last quarter of 2008, South Africa has cumulatively lost 902 000 jobs.

Clearly, something is not working.

We cannot afford to sit and wait for the rest of the world to rescue us; we need to deal with the crisis internally.

Some government policies, and some union activity, are preventing the country from rising out of the jobs crisis.

We have Cosatu demanding a total ban on labour broking; the labour minister tabling a batch of the worst-drafted and most constrictive labour legislation the country has seen; and some of the most far-reaching strike action seen for years.

There were reportedly more than 1 000 working days per 1 000 workers lost last year, partly because of the prolonged public sector strike. This year has been no better.

One commentator, Gavin Brown, says South Africa now has the highest rate of strikes in the world.

This is completely unnecessary

With the world’s largest dispute resolution centre in Joburg (the Commission for Conciliation, Mediation and Arbitration, or CCMA) we are clearly doing something wrong. Such a level of dispute and conflict is not in keeping with international norms.

Cosatu is creating unrealistic expectations, while current legislation and labour policy have created unhealthy, antagonistic labour relations.

Signs of the stress caused to the economy can be seen in the number of vacant stores and defunct restaurants in top-rate locations.

The lack of leadership in the Zuma administration compounds the problem. Highly controversial policy debates are raging around ANC alliance partners with no sign of resolution.

The debate on the nationalisation of mines and land expropriation, faltering foreign direct investment, a growing budget deficit and the mis-handling of the Walmart-Massmart merger, plus uncertainty about the future of labour brokers, point to this administration’s inability to lead and its failure to fulfil its promise that 2011 would be a year of job creation.

One has to ask, what factors are preventing President Jacob Zuma and his cabinet from taking action and rolling out a jobs-friendly economic policy?

A key problem must be the broad church of the tri-partite alliance and a bloated and directionless cabinet.

We’ve reached the point where the pendulum has swung too far in the direction of Cosatu’s demands for large-scale new job creation to be possible.

The pendulum needs to swing back from the edge. Critical dialogue in the alliance seems to be in only one direction, with Cosatu criticising the ANC government and no serious alternative direction offered. We may end up with the labour movement governing through the back door.

We need urgent changes to government policy and a jobs-friendly review of labour legislation, to provide the jump-start for jobs creation that the Expanded Public Works Programme has failed to produce.

The unemployed have no say at Nedlac or in the cabinet, which means Cosatu gets disproportionate airtime.

Policy, legislation and regulations aim to give ever more protection to those who have jobs, while making it harder for those not in work to find an open door to a new or entry-level one.

Lazy

A key problem is the difficulty companies face in replacing lazy or dishonest staff with hard-working or trustworthy people who are unemployed. This discourages companies from giving inexperienced or unskilled workers a first leg-up to a real job, as the risk is too great.

Changing the law to deal with this problem will reduce the burdensome caseload borne by the CCMA and encourage firms to take on more youth and people without work experience.

It costs taxpayers an average R6 500 a case to administer a remedy for unfair dismissals at the CCMA, but the average settlement cheque is R5 000 if the employee is not reinstated.

This is inefficient, costly and unnecessary. The system needs review to get people working or job-hunting and not waiting for their cases to be heard.

Providing a youth wage subsidy, tax rebates for skills development on the job, tax holidays for newly set-up small-scale enterprises and more support for small to medium businesses will help unlock the economy.

The great failing of this ANC administration, and the previous one, is that virtually all activities of the labour ministry and department focus on giving greater protection to existing workers while doing virtually nothing to create jobs, or to empower small business.

The Employment Services run by the labour department is a dismal failure, seeing a tiny fraction of job-seekers settled in permanent positions. Along with Productivity SA, it represents the only real attempt by the department to assist. This is pathetic.

With the current prohibition on firing lazy workers, difficulties in retrenching during a downturn, rising electricity costs and lack of continuing support for new enterprises, we will not see any new factories being built. Jobs-intensive companies that focus on exports should get a tax holiday to a degree.

Some have proposed an economic Codesa to break the current deadlock. The deadlock is caused by the lack of a strong voice at Nedlac and in the cabinet on behalf of the unemployed and the stranglehold Cosatu has on policy within the alliance.

An economic Codesa requires the voice of the unemployed being heard above the political posturing that bedevils policy debate.

The pendulum must swing away from Cosatu and the left to a more sensible middle ground where business can recover its confidence and open up the economy to increase manufacturing and exporting.

It has swung too far in favour of people who have jobs and too far from people who have no jobs.

An ANC colleague suggested the ruling party doesn’t want a labour broking ban, but is trying to appease Cosatu. If that is so, we have to hope the centre holds, and that leaders will bring the policy debate back to the unemployed and growing the economy.

The ANC needs a strong man to stand up to the left within its ranks and to point to these alternatives. This may result in the left splitting from the alliance, or listening to reason for the sake of the unemployed. Either way, it will be a service to the unemployed and the country.

http://www.iol.co.za/dailynews/opinion/pendulum-must-swing-on-jobs-1.1129800

 

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Labour disputes: Disputes of right versus disputes of fact

In an employment relationship, a dispute is any disagreement or conflict between employees and their employer over issues such as discipline in the workplace, management style, wages, dismissals and other grievances which employees may have over their working conditions.

Broadly speaking, labour disputes are of two types namely disputes of right and disputes of interest. It is the purpose of this article to fix a dividing line between these two types of dispute as they are fundamental to the philosophy informing the dispute resolution procedures of the Labour Act.

Section 2 of the Labour Act defines dispute of right as “any dispute involving legal rights and obligations, including any dispute occasioned by an actual or alleged unfair labour practice, a breach or alleged breach of this Act or of any regulations made under this Act, or a breach or alleged breach of any of the terms of a collective bargaining agreement or contract of employment”.

It goes on to define dispute of interest as “any dispute other than a dispute of right”. South African labour law guru, Dr John Grogan, on page 344 of his book Workplace Law distinguishes between the two types of dispute as follows:

“A dispute of interest is one in which the claimant party seeks a benefit or advantage to which he has no legal entitlement; a dispute of right is one concerning the alleged infringement of a legal right, or the conferment of a benefit to which the claimant is legally entitled”.

Basically, disputes of right are conflicts that arise over the interpretation and application of existing labour laws, employment contracts, collective bargaining agreements, custom and practice or common law of employment. In practical terms, disputes of right will focus on existing rights.

For example, the law provides that employees must not be dismissed unfairly. Both the employer and the employee are not in disagreement about the existence of this right. However, conflict can arise over whether this right has been infringed, or not.

The employer will maintain that the employee was fairly dismissed while the employee will argue that their right not to be unfairly dismissed has been infringed.

Disputes of right usually involve claims of unfair dismissal (for example, retrenching employees without consulting with them), unfair discrimination or other unfair labour practices.

An example of a dispute of right is where an employer fails to pay an employee the correct rate.

Given that disputes of right are disputes are of a legal nature, the best way to resolve them would be to make use of judicial or quasi-judicial processes such as disciplinary procedures, grievance procedures and arbitration. A dispute of right is not settled by negotiation.

In contrast, disputes of interest are disputes between employers and employees where neither party has a right to that which it wants.

With such disputes, conflict may be a matter of opinion, such as whether a person or group of persons is entitled to certain resources or privileges.

There is no established law or right, hence parties have to resolve their differences through collective bargaining or negotiation.

The outcome of these negotiations may result in the creation of new rights that will affect the future relationships of the parties.

A good example would be a wage dispute. There is no right to a wage increase.

The outcome of a wage dispute can only be determined by power play – the exercise of economic power by employees and employers. Each party employs different strategies to achieve what it wants.

Employees can embark on strike action where agreement cannot be reached. Employers can withhold pay, effect a lockout or threaten employees with dismissal.

In order to protect industrial relationships from anarchy and lawlessness, the Labour Act sets out structures and processes on how disputes in the workplace must be resolved.

It prohibits collective job action over disputes of rights. While collective job action is fundamental to the resolution of disputes of interest, the Labour Act has put in place strict procedural requirements and exclusions before collective job action can be considered lawful.

In cases where collective job action poses social and economic risks to society in general, such as in essential services, the law prohibits recourse to industrial action and disputes will have to be resolved through arbitration.

Labour disputes can pose very serious problems in any organisation. While the distinction between disputes of right and disputes of interest may have legal significance, it has little economic significance.

Any workplace dispute will result in loss of production, loss of market share, loss of public confidence, poor motivation and low morale of employees and even closure of the organisation.

Therefore disputes need to be prevented and settled as early as possible by making use of the dispute resolution mechanisms provided for in our labour laws.

http://www.newsday.co.zw/article/2011-08-30-labour-disputes-of-right-versus-fact

 

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JOB TALK: Forgiveness a great aid in stress reduction

“An eye for an eye, a tooth for a tooth” would make for a fairly pathetic sea of humanity in the workplace — if such a practice was followed in our culture.

The workplace would be nothing but blind employees and toothless individuals if we could never learn to forgive one another.

Everyone has a bad day. Everyone has moments of performing or demonstrating attitudes less than their very best.

What a great day it would be in the workplace if everyone would just get along. Some days it appears impossible. Statistics and personal experience will show disharmony and conflicts exist in marriages, families, faith communities, neighborhoods and in the workplace.

In 2000, “Attitudes In The American Workplace VI” Gallup Poll sponsored by the Marlin Company found that:

» 80 percent of workers feel stress on the job, nearly half say they need help in learning how to manage stress and 42 percent say their coworkers need such help;

» 14 percent of respondents had felt like striking a coworker in the past year, but didn’t;

» 25 percent have felt like screaming or shouting because of job stress, 10 percent are concerned about an individual at work they fear could become violent;

» 9 percent are aware of an assault or violent act in their workplace and 18 percent had experienced some sort of threat or verbal intimidation in the past year.

Conflicts in all areas have heavy consequences to bear. As a country, we are involved in three conflicts. We as a nation have some of the highest crime and violent offender statistics in the world.

We should not be surprised when bad behavior spills over into the workplace.

The unemployment numbers are consistently high and the competition for jobs, personal loans, services and assistance are dismal, at best.

We understand many of the complexities in life are outside of the realm of our control. The realities remain heartbreaking. At the end of the day — regardless of the circumstances — we still are responsible for our own individual contributions, behaviors and actions.

Conflict resolution experts may always advocate communication as the starting point with rebuilding relationships. Effective communication is no doubt vital in the workplace.

Another equally important component to building strong relationships is forgiveness.

We seldom hear the word forgiveness when it comes to resolving conflict in the workplace — but, it may very well be the key to growing healthy workplace teams and the key to long term professional success. We may have no control over our coworkers, but we have an opportunity to offer forgiveness and build healthier relationships.

We absolutely will never agree on everything — in our personal lives, or in our professional lives. Conflict can be healthy, enlightening and may stimulate the necessary change for many worthwhile opportunities.

Forgiveness is a great aid in stress reduction. When we can accept our coworkers for who they are and what they represent, and understand imperfections — perhaps we can extend the hand of forgiveness for any offensives, misunderstandings and mistakes. We can be better employees and better individuals by forgiving and giving someone the chance for a fresh start.

When you consider the amount of time you spend in the workplace — and the amount of energy and effort necessary to be successful — why not work just as hard to build bridges with your coworkers versus fences?

Anxiety and stress are normal, but our reaction to conflict, uncomfortable situations, diversity in coworkers and our own fixation with these (often perceived) problems can only prove detrimental.

Our goal should be problem-solving and conflict resolution. We are a melting pot of people and we bring a richness of education, work history, skills, abilities and ideas to the table in the workplace. We can find teachable moments in the workplace with a positive attitude, forgiveness, acceptance, effective communication and an effort to genuinely develop professional relationships with the people you spend your time working beside.

Sometimes our comfort zone ends right where conflict resolution begins. As employees and human beings, we are all in this together. We are truly better off personally and in the workplace when we learn to just get along.

http://www2.godanriver.com/business/2011/aug/28/job-talk-forgiveness-great-aid-stress-reduction-ar-1269066/

 

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