" Ending" of "Mandatory Retirement"
a Cost-cutting Fraud

Government motivated by bottom line, not human rights

December 12, 2006, Toronto - Freedom Party of Ontario today is again condemning the Ontario government's alleged ending of "mandatory retirement" as a misguided fraud.  In today's episode of FP Television (https://www.youtube.com/watch?v=dYUKLgWWris), FP leader Paul McKeever takes exception to the fact that the McGuinty government is selling the new law on the false basis that it eliminates mandatory retirement in the private sector.  The McGuinty government's Bill 211 comes into force today.

"From the outset, the McGuinty government has tried to sell Bill 211 as though it eliminates mandatory retirement in the private sector", said McKeever.  "The government is misleading the public so that they will embrace a law designed to load government costs onto the backs of employees and private sector employers.

"Despite the fact that Bill 211 has repealed mandatory retirement ages only for some public sector employees and appointees, Minister Bentley publicly announced Bill 211 in June of 2005 at a private sector employer, Home Depot. That decision was part of the government's intentional misleading of the public with respect to this law. A private sector employer was chosen in order to help the government falsely imply that the law imposed mandatory retirement at age 65 for private sector employees and to falsely imply that this law removes mandatory retirement in the private sector. The fact of the matter is that there is no law that makes private sector retirement mandatory at age 65, and Bill 211 has not repealed any such law.

"In the private sphere, the only thing that Bill 211 actually does is introduce a new human rights violation: dismissal on the basis of age for a person aged 65 or over.

"Why did the government bring in this law? Why did the PC party introduce the same legislation under Ernie Eves?  Because it is expected that, by keeping Ontarians working later into their lives, they will not draw on social services as much. Among other things, seniors will be covered by group benefit plans with their private sector employers, and will be less dependent upon financial assistance from the government. And, of course, this is all facilitating the inevitable federal raising of the age for collection of CPP payments.

"What will be the effect on private sector employers? A multitude of additional Human Rights complaints, more business-killing legal bills, less freedom to hire and fire on the basis of business needs instead of political whim. This law constitutes more interference with freedom of contract when, for both moral and economic reasons, there should be less interference.

"What will be the benefit for Ontario employees? It is hard to imagine any. Most human rights complaints are settled: over 70% of them are settled even before an investigation has occurred. Most of them result in chump-change settlements in the $7,300.00 range, as mediators with resource concerns warn Claimants that only tens of complaints actually get a hearing each year; most, after a multi-year delay. Because of the OHRC's relatively tiny budget and huge caseload, those complainants that do not settle are unlikely to get a hearing, so they are likely to get nothing at all and to remain dismissed. And, if they do get a hearing, it could easily be five years after the time of the dismissal, if the complainant has not passed away by that time.  There is no evidence that expected changes to the Human Rights Code will make the process any more rapid or rewarding.

"The government is committing a political fraud for government cost-cutting ends. They are seeking public support for a law that will load government hardship onto the backs of employees and private sector employers alike, but they are selling the law as a noble solution to a mandate that, in fact, does not exist. It is disgraceful."

Additional Background Information

On June 7, 2005, Employment Minister Chris Bentley told the Legislature:

"I was very pleased to be at Home Depot today to assist in making this announcement about the intended introduction of the legislation. Home Depot has respected the rights and abilities of workers who are older than 65. They've recognized that they can make a contribution. It was a feel-good announcement today.

"...today's announcement...was about the human right to decide for yourself whether or not you're going to work when you're 65."

Paul McKeever, Leader, Freedom Party of Ontario
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