Business

What is ‘time theft’ and why are some employers so worked up about it?

Published

2 years ago

January 20, 2023

It may be a new year, but many employers are still relying on an old tool for evaluating productivity.

That would be the clock — against which so much of work is measured, despite ongoing changes in how, where and when work gets done.

Employers and employees can sometimes butt heads over what happens on company time, but in severe cases, an employee could be accused of time theft. And this issue is growing more contentious as employers monitor what remote workers are doing outside of the confines of traditional offices.

“Time theft is arguably an even bigger issue for employers at this time than it has been before,” said Nadia Zaman, an employment lawyer with Rudner Law in Markham, Ont.

Not what you’re paid to be doing

Time theft encompasses a broad range of behaviours — anything from taking longer-than-scheduled breaks or logging off early, to using work hours to do household tasks — all of which an employer would view as being contrary to what one should be doing while getting paid to work.

“Time theft is really when the person actually should be working and they’re not,” said Janet Candido, a Toronto-based HR consultant. “They’re actively doing something else.”

Working life changed for millions of Canadians in 2020, when the pandemic forced organizations to send people home in a hurry. Outside of the confines of traditional offices, employers may now find themselves tracking how employees spend their paid time. (Tijana Martin/The Canadian Press)

Zaman, looking through an employment-law lens, said it’s essentially “when an employee is paid for work that they have not performed,” or for time in which they were not actually working.

Many people might find themselves occasionally guilty, especially with the distractions of remote work. But the problem — and when it really becomes time theft — is when it becomes habitual.

Nita Chhinzer, an associate professor in the University of Guelph’s department of management, said organizations go through a series of steps when cases of alleged time theft are identified. Once it’s documented, that usually leads to progressive discipline, she said.

“It leads to a verbal warning, followed by a written warning, followed by dismissal in some cases,” she said.

But Chhinzer said there are organizations that take a harder line that “theft is theft,” and act decisively.

A headline-making case in Hamilton a decade ago, for instance, saw the southwestern Ontario city investigate and then take disciplinary action against dozens of municipal road workers it suspected of infractions that included time theft.

There were reports of road workers spending as little as two hours a day on the job. Some staff were fired, but most got their jobs back after arbitration.

An ongoing tension

Working life changed for millions of Canadians in 2020, when the pandemic forced organizations to send people home in a hurry. That left workers and employers having to adjust to the new circumstances.

“It’s more of a problem with people working remotely, certainly,” said Candido.

Zaman said there’s not a lot of case law involving time theft disputes and remote work to point to yet. But the issue of time theft goes back further than that. The Canadian Legal Information Institute website (a database of legal documents) has well over 300 entries dating back to 1996 that mention the term.

Some employers are installing software to monitor the activity of employees logged in at home. (Sebastian Leck/CBC)

“It’s actually been around for a while,” said Candido, who recalls advising clients, prior to the pandemic, on addressing the issue of people watching videos on cellphones during their workday.

News stories in recent years have revealed allegations of time theft being raised by a variety of employers — including an accounting firm, restaurants and municipal planning departments, and involving allegations ranging from employees billing for time they had not worked to people using their work time to conduct personal errands.

Zaman said time theft is a broad issue that may be raised in a variety of contexts and jobs.

“Typically we see it more in the context of hourly employees because of the nature of the work. But it doesn’t mean that it can’t happen for salaried employees,” she said.

Why the clock keeps ticking

For many employers, the clock has long been a mainstay of how they keep tabs on what’s getting done.

“Most employers don’t know how to measure productivity in any other way,” said Candido, the HR expert, noting that stance has spurred more of them to employ software to monitor the activity of employees who are working at home.

Organizations are using such tools to determine if the person who has logged onto their computer is actually doing work, she said. Just last week, The Canadian Press reported that a tribunal ordered a British Columbia accountant to pay her former employer more than $2,600 after a tracking software showed she engaged in time theft while working from home.

The University of Guelph’s Chhinzer said this approach is rooted in “legacy thinking” about jobs being built around a strict schedule and a defined exchange of a certain amount of money for a certain amount of time worked.

“That’s how we have thought about jobs for so long,” said Chhinzer, who recently wrote in The Conversation Canada about the flaws of such clock-focused thinking.

It’s also not the way that a lot of knowledge workers go about their work, she said.

“If we can find ways to be more productive, then we should still be compensated and rewarded to the same level for completing the work, without being penalized for our productivity,” she said.

Eroded trust

Paul Hutton, who works out of the Greater Toronto area, is a director in a private-sector company — a job that involves managing dozens of employees.

With a background in sales, he says he’s long been used to working in an environment where people were successfully working outside an office.

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While he says he gets that some companies may have previously had concerns about having people working from home, it’s clear to him that it can work.

“You can achieve results … you can do this remotely,” he said, noting it involves putting trust in employees.

“Trust and honesty are critical,” said Zaman, the employment lawyer, noting they may be even more so in situations where someone works outside of an office.

From Candido’s perspective, the working world is seeing a broader erosion of the relationship between employers and their employees “starting with the pandemic and it’s just getting worse and worse.”

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Business

Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

Published

1 day ago

November 8, 2024

Anne Joseph

Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

Companies in this story: (TSX:T)

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Business

TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

Published

2 days ago

November 7, 2024

Anne Joseph

CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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Business

BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

Published

2 days ago

November 7, 2024

Anne Joseph

BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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