w  rd 2 the woss

Premier Kathleen Wynne announced amendments to the Employment Standards Act and Labour Relations Act on Tuesday May 23, 2017. New implementations include an increase in minimum wage from $11.40 to $15 per hour by 2019.

 

The enactment of the proposal is to happen gradually over the next 18 months. Residents can expect the first action to occur by Jan. 1, 2018, when minimum wages increase to $14 per hour. Additionally, workers who have held a job for five years will be entitled to three weeks of paid vacation and also have the right to 10 emergency days annually, 2 of which must be paid.

 

Students and servers will still have separate, lower minimum wages under the proposed legislation, which will rise to $14.10 and $13.05 respectively in 2019.

 

“People on low income will be rejoicing,” said Kemba Robinson, spokesperson for the Association of Community Organizations for Reform Now. “There are families that have to choose between buying food and paying rent, and we don’t think that is a fair choice. This is a significant improvement in their quality of life.”

 

This is the largest jump in minimum wage ever in Ontario’s history. While low income families and vulnerable workers are celebrating, apprehension is brewing amongst employers. Businesses are worried they will need to cut jobs or raise prices in order to meet the minimum wage requirement, saying they were blindsided by these proposals.

 

A policy analyst at the Canadian Federation of Independent Business said that “at no time did they ask us or consult on minimum wage… So I think the initial reaction here is we’re feeling pretty blindsided.”

 

Businesses are complaining that the combination of this proposal, raising employment-insurance premiums and cap-and-trade programs will make it incredibly hard for businesses in Ontario to stay profitable. They face three challenges, the first is allocating resources to manage costs efficiently. Second, businesses must ensure they still have enough money to operate production. Third, they must respond to the regulation’s interruption to their long-term plans, such as expansion.

 

These increased costs put significant pressure on small to medium-sized businesses, forcing them to take their business elsewhere or risk going under. This clearly makes Ontario’s job sector less advantageous when competing with neighbouring markets such as America’s. Combined with rising future energy costs, and cap-and-trade legislation, Ontario should expect to see its small business sector suffer.