Minister responds to study on minimum wage hike
MPP Jeff Leal says he is still listening to small business owners on the issue of a plan to increase minimum wage – but at the same time, the provincial government is looking for “fairness and decency” for low-wage workers.
Leal is the Minister of Agriculture, Food and Rural Affairs and the Minister Responsible for Small Business.
He responded on Tuesday to a study released Monday that says Peterborough may be especially hard-hit, in terms of job losses, when the provincial government carries out its plan to hike minimum wage to $15 an hour.
The study was commissioned by the Ontario Chamber of Commerce, and conducted by the Canadian Centre for Economic Analysis (an independent research firm in Toronto).
It states that 185,000 jobs across Ontario will be put at risk, over the next two years, if the government increases minimum wage as planned.
In Peterborough, the study says 2.7 per cent of all jobs will be threatened.
That’s particularly high: of 49 municipalities studied across Ontario, only six others are expected to lose that many jobs or more.
The study also says small businesses are likely to be affected five times more than larger ones.
Terry Guiel, the executive director of the Downtown BIA, said the government’s plans will hurt downtown Peterborough.
He said there will be fewer workers downtown when the minimum wage goes up – fewer part-time workers, especially.
“Our business owners are looking to freeze hirings – and they’re laying off longtime employees,” he said. “This will be extremely detrimental to my business community downtown.”
In a written statement issued to The Examiner, Leal said the government is reviewing the study and still hearing business owners’ concerns.
Here is the full text of Leal’s response:
“We are reviewing the report commissioned by the Keep Ontario Working Coalition and the Ontario Chamber of Commerce, and appreciate their engagement and contributions on this important issue.
“Over the last few months, our staff and officials have heard directly from hundreds of local small businesses on this important issue, working closely with the OCC through its local roundtables and town hall sessions. We are taking all feedback into consideration during this process.
“Our government has made the decision to ensure that fairness and decency are the true defining values of our workplaces. These are not decisions that we take lightly, and we want to ensure that every worker is treated with respect. We understand that these changes can cause anxiety for small business owners, and that is why we are listening and taking action.
“The Premier has committed to bring forward initiatives to help small businesses in Ontario, and we will continue to work with the business community to foster a competitive economic environment where they can thrive.
“This is in addition to steps we are already taking to make it easier to do business with the government and to create new opportunities for small businesses, modernizing our relationships and exploring how we can better enable their success, leaving no stone unturned as we consider all available options.”