Wage hike worries GNCC
While poverty reduction groups eagerly await the release of the provincial government’s final report on its Changing Workplaces Review, Greater Niagara Chamber of Commerce fears the proposed changes — as well as a $15 minimum wage — could cause more harm than good.
The province’s report, expected to be released next week after more than a year in development, is anticipated to include a requirement for employers to provide paid sick days, a minimum three weeks of paid vacation time, as well the minimum wage hike.
Although members of the Niagara Poverty Reduction Network have been advocating for a “living wage” amounting to $17.47 an hour, the group’s chairman, Glen Walker, said $15 an hour is a significant improvement over the current minimum wage of $11.40 an hour.
“For people who are struggling day to day, it would be a significant boost for them,” he said. “Providing a better income to people who are struggling at minimum wage, they’re going to reinvest in our community right away. They’re buying goods, services, etc. It’s a sound reinvestment back in our community and hopefully our economy as well. We certainly see that as a real plus for not only people who are earning minimum wage, but at the same time for the region as a whole.”
But GNCC president and chief executive officer Mishka Balsom said the proposed minimum wage increase of about 30 per cent could have unintended consequences and potentially hurt job creation and discourage investment in the province.
GNCC teamed up with Ontario Chamber of Commerce earlier this week to write a letter to Premier Kathleen Wynne, in anticipation of the release of the report. The chamber says the changes could hurt retailers, tourism companies, and agriculture and viticulture businesses leading to downsizing, layoffs and higher prices while discouraging investment in Ontario and diminishing economic opportunities.
Although the chambers agree that workplace reform is “doubtless necessary,” Balsom said it must be based on evidence and research in consultation with stakeholders, rather than electioneering.
“There’s no economic impact analysis being done, there’s no research being provided and that’s the concern that we have,” she said. “If someone could look at it and say this is the economic impact that an increase from $11.40 to $15 would have on our economy in Ontario then we would have data to base it on and we could maybe take a look at it and see how we can support businesses to sustain them and make sure that they’re not closing their doors and they’re not laying off people.”
Despite the concerns, Walker said minimum wage increases implemented in other areas “have not sunk those economies.” “It hasn’t put them in ruin.” He said concerns that businesses will suffer are shortsighted, because they, too, can benefit in other ways.
For instance, Walker said the higher wage could mean less employee turnover and less time spent training new staff, and a better quality service for customers.
He said the extra $3.60 per hour paid to minimum wage workers will also be spent, adding to the local economy.
“I’ve never seen anyone who received an increase not spend that money,” Walker said.
“The cost to live in Niagara region is high. A lot of people are struggling to pay their rents, the cost of food, and having to go to food banks.
“Imagine if everyone who had to go to a food bank actually had money to afford not to go to a food bank.”
Meanwhile, he said, too many people are precariously employed, forced to work multiple jobs and juggle complex work schedules to make ends meet.
“And of course there’s almost nothing in the way of benefits and income security. We’re aware of people who are ill and can’t stop working to recuperate,” Walker said.
Lori Kleinsmith, a health promoter from Bridges Health Care who has worked with Niagara Poverty Reduction Network towards its efforts to adopt a living wage for the region, is particularly pleased about the requirement for paid sick days.
“As a health-care organization, we are very much in favour of that.”
Currently, she said people are having to go into work, despite being sick because they can’t afford not to.
“Those of us who have paid sick days often take them for granted, but if you don’t have access to that it’s a very significant impact on people’s lives and livelihoods.”
Kleinsmith said she suspects the minimum wage increase would be phased in over time, reducing its impact on businesses.
“There have been a lot of wage increases of this nature happening in the United States and we’re definitely seeing positive signs that it’s not putting people out of work,” she said. “In many cases, it’s improving working conditions, it’s improving the local economy because people then have more money in their pocket to spend within their local community.”
Welland MPP Cindy Forster said she, too, has heard that the report is set to be released next week, although it will then be subject to a further consultation before it’s finally considered by the legislature.
She said the New Democratic Party has previously included a minimum wage hike in its part platform, to lift people earning minimum wage out of poverty.
But after four consecutive terms of running the province, Forster questioned the timing of the Liberal initiative.
“They’ve had 14 years to actually phase in a decent minimum wage and they’re doing it just going into the final year of their mandate,” Forster said.
ABenner@postmedia.com Twitter: @abenner1