Staff blow whistle on ‘corporate bullies’ via new hotline

Forty eight hours after setting up a hotline for workers, the Ottawa and District Labour Council said Sunday it had already heard complaints about more than 20 Ottawa businesses potentially acting as what it calls “corporate bullies” in response to new Ontario minimum wage laws.

The issue has gone viral in recent days as several Tim Horton’s franchises — including one in Cobourg owned by the company’s co-founders — told employees they would be losing paid breaks, paid benefits and other perks in response to the wage hike that pays minimum wage workers $14 an hour effective Jan. 1, and $15 an hour on Jan. 1, 2019.

The chain later denounced the actions of franchisees, calling them “reckless” and “rogue”.

Some Ottawa businesses — notably the Clocktower Brewhouse, which operates a chain of pubs in the city — have taken action in response to the minimum wage hike.

In a memo circulated on social media, the Clocktower told employees it was changing its tip out policy as of Jan. 8, which means, among other things, dishwashers would no longer receive a portion of tips “due to their pay increase.” A spokesperson for the Clocktower was not available for comment.

Meanwhile, another Ottawa business, Rainbow Foods, backed off earlier plans to reduce breaks in response to the wage hike.

“We listened to our customers and employees and have revised our decision to reduce breaks,” the business said.

Sean McKenny, president of the Ottawa and District Labour Council, said the hotline set up on Friday had, as of Sunday evening, received 25 calls in addition to about 30 emails from people complaining about action being taken by businesses in response to the minimum wage hike. In total, he said, the calls and emails referred to about 20 businesses, including “more than one” Tim Horton’s franchise. He did not specify which ones.

McKenny said the labour council would check out the complaints it received on its telephone hotline and by email before going public.

McKenny said action by businesses involves removing breaks, reducing hours and clawing back or redistributing shared tips but added that he hoped more businesses will respond to public concern and back off plans to respond to the wage hike.

“We hope cooler heads will prevail and employers will give it a chance.”

McKenny said he hoped that in coming months businesses will see that the increase means there “is more money in the community and maybe some of those employers will reap the benefits. That is our hope. We certainly hope no employer has to close their doors.”

In December, the By Ward Market restaurant Black Tomato announced it was closing its doors after 23 years. Its owner, Pete Besserer, blamed the minimum wage hike, saying “it would be a $80,000 hit for me.”

Meanwhile, Centretown restaurant Union Local 613, said last week it was raising wages for its kitchen staff to $16 an hour.

Co-owner, Ivan Gedz said restaurants who say paying a fair living wage can’t be done are “full of s---.”