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Thread: $15 minimum wage in Ontario implemented

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    $15 minimum wage in Ontario implemented

    Back in 2014, the Ontario Liberals introduced legislation to tie the minimum wage to inflation. The idea came about after study by an expert panel of labour, business and youth representatives, and it was designed to be both fair to workers and predictable for companies. The government was keen to emphasize that the move would take the politics out of the contentious minimum wage issue.

    Three years later, the Liberals put the politics right back in, opting to raise the minimum wage from $11.60 an hour to $14 as of January 2018, and to $15 the following year. The scale and pace of the jump is virtually unprecedented in Canada and the U.S., making the long-term impact tough to gauge. Businesses have warned that wage hikes could result in a decrease in hours for employees, a slowdown in hiring, price increases and job losses. Those complaintsare par for the course when a minimum wage increase is proposed, but some actions by businesses appear to have taken the province by surprise. In the wake of revelations that some companies may have violated workplace rules in response to the minimum wage hike, the Ministry of Labour said this week it’s hiring up to 175 new inspectors to investigate complaints and ensure compliance.

    The past week has been messy, with accusations that businesses are behaving unethically, but also that the provincial government’s policy is to blame. Still, the policy could prove advantageous for Premier Kathleen Wynne in the upcoming provincial election—even with turmoil in the business community.
    The minimum wage hike will cost Kathleen Wynne, but how much? - Macleans

    This is all I heard about when I was in Canada for the holidays, mostly that my family and friends disagreed with it. Some businesses are being boycotted because of their response to the first step in implementation (as of January 1 2018 minimum wage is $14/hour, and will get to $15/hour on January 1 2019). Some issues are that temp workers now must be paid the same as permanent workers in their position, benefits are now being rolled back so workers pay more, changes in emergency leave, so on.

    From another source:

    When the Ontario government passed legislation last year to increase the minimum wage by 21 per cent, businesses warned they would be forced to eliminate jobs and reduce hours and benefits for employees. Now, those cuts are happening.

    The decisions are all due to the increase that kicked in on Jan. 1, which raised the minimum wage to $14 from $11.60, and to prepare for the hike to $15 coming on Jan. 1, 2019.

    Shannon Leslie Stewart won't be hiring a student this summer to work in her consignment store, Covet Community Closet in Stratford, Ont. Ms. Stewart is also putting off plans to offer employee benefits and has changed her salary structure to include commission, instead of paying above minimum wage as she has in the past.

    "Not hiring a student was a hard decision for me to make," says Ms. Stewart. "I love having young students and giving them their first job experience … It might be a good social investment, but I have to think with a business mind."

    Ms. Stewart is among thousands of business owners in Ontario making changes to adjust to the higher minimum wage. She says she isn't opposed to paying employees more, but the rapid increase has left her struggling to cover the costs.
    Minimum-wage hike spurs Ontario Businesses to cut benefits, hours - Globe and Mail

    I figure the United States, and specific states, will be watching closely to see what happens.

    $15/hour is just $#@!ing crazy, in my opinion.

  2. The Following 2 Users Say Thank You to Adelaide For This Useful Post:

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