Minimum wage increase causing great harm
Re: Wynne accuses shop owners of bullying — Jan. 5
What did Kathleen Wynne think when she pushed through a massive minimum wage increase, when she was repeatedly warned by industry that this would cause the loss of 50,000 jobs, which has now been increased to 60,000 jobs, according to a report from the Bank of Canada?
She has no right to complain about the move by a Tim Hortons franchise owner to compensate for the increased cost to its business by offsetting perks that it extended to its employees. What they did is legal and morally right, because they have to be able to make a profit in order to pay their occupancy costs, suppliers, employees and stay in business.
The dry cleaning and laundry industry is in a similar bind. I have surveyed the industry, and as a result of the new minimum wage, the average increase in charges for the services performed by our industry will rise approximately 10 per cent. The survey also showed that as a result of the increase, that the real cost of this legislation will result in a 41 per cent increase in the cost of labour. The government has failed to show that with all the other benefits they gave, that this resulted in an additional 10 per cent increase in labour costs.
In previous letters to the premier and MPPs, I have stated that not only are they raising the minimum wage too fast, but experienced and knowledgeable employees are demanding higher pay as well, since they feel that a person with no experience will receive the amount mandated by the government.
This has been nothing more than a ploy to gain votes in the next election, as the Liberals have lost favour with the voters.
We do not begrudge increasing the minimum wage, but it was done in such a drastic manner, that it is causing great harm to the economy. We would rather see some public assistance from the government to those who were at the minimum wage, rather than force the cost of this program on the backs of small businesses. Sidney Chelsky Executive director, Ontario Fabricare Association