Item - 2010.ED29.4

The Economic Development Committee recommends that:

1.         City Council allow all retail stores to open or close on Public Holidays including New Year’s Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, Easter Sunday and Family Day at the discretion of the owner and/or manager.

2.         City Council authorize the City Solicitor to bring forward amendments to Municipal Code Chapter 510, Holiday Shopping to reflect this recommendation.

This report recommends amending Municipal Code Chapter 510 Holiday Shopping to allow all retail stores to open or close on public holidays at the discretion of the owner and/or manager.

The enactment of the City of Toronto Act in 2006 meant that the (Ontario) Retail Business Holidays Act (RBHA) which regulates the operation of retail stores on Public Holidays would no longer apply within the City of Toronto. Consequently, as a temporary measure, City Council adopted a by-law to in essence maintain the status quo until a review of holiday shopping practices in Toronto could be completed.

This review, including extensive research and consultation, was undertaken in 2007 and a staff report submitted to the Economic Development Committee for consideration at its February 20, 2008 meeting.  The Committee’s recommendations were considered by City Council at its meeting on March 3, 4 and 5, 2008. City Council voted to receive the item for information only.  Thus, the status quo remains in effect.

Since that time, the issue of retail closures on public holidays has been raised on numerous occasions by businesses in discussions with City staff.  The Toronto Association of Business Improvement Areas (TABIA), Oxford Properties/Yorkdale Shopping Centre and Sherway Gardens wrote to the City, in January and February 2010 respectively, expressing concern about the “inconsistent, confusing and unfair business climate” created by the current policy framework and asking that Council establish a level playing field for retail operations.

In summary, the inequities in the current policy framework arise from the facts that:

•           The requirement for privately owned businesses to close on public holidays applies only to the retail sector.  Employers and employees in all other sectors are permitted to make their own decisions.

•           Within the retail sector, subject to compliance with the Employment Standards Act, the (Ontario) Retail Business Holidays Act and the City’s Municipal Code Chapter 510 provide numerous exemptions, including stores selling foodstuffs, tobacco, antiques, handicrafts, gasoline/motor oil, nursery stock, flowers, fresh fruit, books, newspapers, periodicals and art galleries, of less than 2,400 square feet and employing less than four persons; pharmacies less than 7,500 square feet, restaurants, hotels, laundromats and other coin-operated services, automobile and boat rental establishments and service/repair facilities. Movie theatres, casinos, attractions and places of entertainment are also permitted to open on public holidays.

•           Within the City of Toronto, several areas (Eaton Centre and Hudson Bay Company Queen Street Store, Downtown Yonge BIA, Bloor-Yorkville, Queen’s Quay Terminal, and The Distillery Historic District, applied for and received tourism area exemptions under the RBHA (prior to the City of Toronto Act).

•           Chapter 510 of the Municipal Code does not provide a process for any other areas within the City to apply for an exemption.

•           Also within the City, many retail operators are either unaware or choose to disregard the provisions of Chapter 510 and open on public holidays.

•           Retail stores in other Ontario municipalities, still subject to the RBHA, have applied for and received exemptions.

•           Different areas within the City are subject to different competitive pressures, e.g. Sherway Gardens, Yorkdale, Splendid China, Fairview Mall and other suburban retail areas directly compete with retail operators in surrounding municipalities that have been exempted from provisions of the RBHA.

•           British Columbia, Alberta, Saskatchewan, Yukon Territories, Nunavut, Northwest Territories and most US States permit retailers to make their own choice to open or close on public holidays.

This report recognizes that Toronto is one of the most diverse, multi-cultural cities in the world today and that not everyone experiences holidays in the same way, and recommends that retail businesses, like those in other sectors, be permitted to make their own choice to open or close on public holidays.  In a city the size of Toronto, some individuals will choose to use some public holidays as a day of rest as the best way to improve their quality of life, others will choose to take advantage of additional hours of commerce, or employment at a wage premium, for the same reason.  This report recommends a course of action that respects both choices and provides for a harmonized, fair and equitable regime for operating retail stores on Public Holidays in Toronto.  The right of all employees in all sectors, including retail, to refuse to work on public holidays without repercussion is protected by the (Ontario) Employment Standards Act.