Minimum wage hike starts New Year’s Day
More than 1.2 million Ontario workers including thousands in Niagara will have an extra reason to celebrate on New Year’s Eve.
On Jan. 1 the province’s Fair Workplaces Better Jobs Act comes into effect, increasing the adult general minimum wage to $ 14 an hour — up from $ 11.60.
It will also increase the minimum wage for students under 18 to $ 13.15, up from $ 10.90; while liquor servers will earn $ 12.20, up from $ 10.10.
On Jan. 1, 2019, the province’s general minimum wage is poised to increase to $ 15 an hour.
But while minimum wage earners and social justice advocates celebrate, the 20.7 per cent wage hike remains a cause for concern for business owners.
Dolores Fabiano, executive director for chambers of commerce representing businesses in six Niagara communities, said business owners generally “want to pay a fair wage.”
She said the increase, approved on Nov. 27, is “too much, too quick.”
“It’s definitely going to have an impact. People are nervous. They’ve been trying to prepare for it. This is a big increase in a short amount of time,” she said. “How do you prep for that?”
Niagara Poverty Reduction Network chairman Glen Walker said the increase will help many families in Niagara.
“They will actually be moving out of living in poverty,” he said.
“Although Walker doesn’t believe employers want their workers to live in poverty, that’s sort of the spinoff of it all.”
“This is certainly going to help people significantly,” he said.
Walker said he understands that the increase won’t be easy for employers and small business owners in particular, but efforts are underway to provide tax relief to business to compensate for the wage increase.
“Certainly we don’t want them to suffer unduly around the change. We’d like to see a balanced approach in terms of people on both sides benefitting from this,” he said.
Nevertheless, Fabiano said consumers should expect to see increases in the cost of products and the services.
“It’s got to come from somewhere,” she said.
Fabiano said some of the business owners she represents have told her that there could be job losses at their businesses as a result of the increased costs.
“It will force them to either cut back hours or not hire come the new year. We’ll have to see how it all plays out,” she said.
“It’s a big hike … This increase is too much, too quick.”
But Walker said people receiving the increase will be spending that money locally, which should also help support those businesses.
“It’s not going to be a detriment to our local purchasing power economy here.”
Despite concerns that have been raised that the extra income would instead be spent out- of- town on online purchases, Walker said that’s not likely to happen.
Minimum wage earners still won’t have the disposable income to allow them “to buy all those extras,” but the increase might be enough to help reduce their reliance on food banks and charities.
“It’s certainly going to help people feel better about themselves, feel better about where they live and feel that they’re contributing members of our community.”
The new legislation also gives all workers 10 days of emergency leave, including two days with pay, and allows workers to take sick days without providing a doctor’s note.