Ontario tweaks labour reform bill; $15 minimum wage phase-in stays

TORONTO A major Ontario labour reform bill is being tweaked but so far is seeing no significant changes to key parts, including a controversial phase-in of a $15 minimum wage, leaving businesses looking to a relief package promised by the premier.

The Liberal government’s legislation includes equal pay for part-time workers, increased vacation entitlements and expanded personal emergency leave, but the centrepiece is an increase in the minimum wage. It is set to rise from $11.60 in October to $14 in January, and $15 in 2019.

Businesses have said a 32 per cent increase in less than 18 months will be tough to absorb, and have called for a slower rise.

But the government made no changes to that timeline in the first round of amendments this week at a Liberal-dominated committee, and also voted down almost every change proposed by the NDP, such as giving all workers five paid sick days and eliminating minimum wage exemptions for servers.

There will be another chance to make changes to the bill after the second reading expected next month, and business groups say they’ll continue to press for amendments.

They’re also eager, however, for the government to unveil a package of offsets to help businesses cope with increased costs the labour bill will bring.

Economic Development Minister Brad Duguid has said a break for small businesses will come “likely on the tax side.”

That’s in addition to already planned burden reductions such as cutting administrative costs, streamlining compliance for small businesses and increasing small businesses’ share of government procurement, Duguid said.

Jeff Leal, the minister responsible for small business, has said Ontario is eyeing the example of Manitoba, which has a zero tax rate for small businesses on the first $450,000 of active income.