Wynne hints at help for restaurateurs
Minimum wage increase has premier looking for balance between workers, employers
Premier Kathleen Wynne is hinting at something appetizing for restaurateurs anxious about looming changes to Ontario’s labour laws.
With the government raising the $11.40-an-hour minimum wage to $14 on Jan. 1 and $15 in 2019, and improving employees’ rights on scheduling, Wynne has been trying to allay the fears of restaurant operators.
“We want to be fair to businesses and, as well, to employees,” the premier said Friday at St. Clair College in Windsor, Ont.
“Restaurant owners, in particular, have talked to me about other fees that they pay . . . other things that come off their off their payroll cheques; some of the fees that they pay to some of the . . . you know, to the LCBO, for example,” Wynne said, referring to the province’s liquor monopoly.
“We don’t know exactly what those will be, but there are a number of suggestions that are coming forward. We’re looking at everything, because, as I say, I want us to find this balance.”
As part of the proposed wage changes, liquor servers, who make most of their money from tips, will see their minimum hourly wage jump from $9.90 now to $12.20 on Jan. 1, and to $13.05 the year after that.
James Rilett, a vice-president of Restaurants Canada, which represents 30,000 businesses across the country, said the industry is watching Wynne’s moves closely.
Rilett, who is meeting with Small Business Minister Jeff Leal next week and will be talking soon with Finance Minister Charles Sousa, said there is much the government can do to offset the impact of the reforms on business.
“I think they’re realizing that the economics of this aren’t as straightforward as they once thought.”
Asked if he is sensing flexibility on the part of the Liberal government, he said: “I hope so. I still don’t know.
“I’ll give them the benefit of the doubt. I hope they intended to give us some assistance, and we’ll continue to work with them and see how it pans out,” he said.
Last week, Restaurants Canada released a survey of its members that found 95 per cent of restaurateurs believe the wage hike will hurt them. The poll found 98 per cent will raise menu prices, 97 per cent will reduce labour hours, 81 per cent will lay off staff, 74 per cent will embrace more automation and 26 per cent would close one or more locations.
The restaurant industry is a major part of Ontario’s economy; it generates $32 billion a year and employs more than 470,000 people in the province.
Rilett noted some restaurateurs are already slowly raising prices to lessen the chance of sticker shock for consumers in next year.
Wynne said she appreciates the concerns of business, but stressed that people “can’t live on $11.40 an hour” and they deserve a raise.
“By increasing the minimum wage, we’re actually creating a situation where businesses, I suggest, will be able to retain their workers because the playing field will be more level,” the premier said, conceding she is trying to strike a delicate balance.
“We have to be careful that we don’t come up with unintended consequences.”