Will wage increase kill jobs?
Re Critics decry labour reforms,
Low-wage families face tough choices, Aug. 15 I would like to direct Ontario Chamber of Commerce representative Karl Baldauf’s attention to the Toronto Star story about Isabella Daley, who works three part-time jobs and makes just $15,000 for her labour.
Businesses are in the business of keeping expenditures down (including the major cost of labour) in order to maximize profits, so it is understandable that Mr. Baldauf protests the raising of minimum wage to $15 per hour.
However, for businesses to succeed, the labour of people like Ms. Daley is essential. Should they not be paid a living wage and be able to adequately support their families?
While not every person has the opportunity to have a highly paid profession or business, people like Ms. Daley are valuable members of our society and need to be recognized as such with decent wages and benefits. Norah Downey, Midland
Re Metro looks to cut costs amid minimum wage hike, Aug. 16 So Metro is joining the Loblaws chorus, claiming that the proposed minimum-wage hike is going to hurt their bottom line.
The article reports that an increase in the Ontario minimum wage to $14 per hour will cost Metro about $45 million to $50 million in 2018. It also states the higher labour costs would account for about 8 per cent of the $586 million in net earnings last year and more than a third of the $127 million paid out in dividends.
God forbid that the money going to low-paid workers would eat into the payouts for the poor shareholders.
An interesting fact not in the article: Metro’s net earnings declined by 1.2 per cent in the first quarter of 2017, yet the declared dividend for shareholders went up 16 per cent. So the group that plays the least role in wealth creation is the one that gets looked after first. Tim Heffernan, Toronto
Will Ontario’s economy benefit from a higher minimum wage? Very doubtful. Will Ontario’s most vulnerable suffer? Undoubtedly yes.
We shall see many more self-checkout kiosks in all major retailers. More selfhelp ordering kiosks in fast-food restaurants. More ingenious ways developed by business to eliminate minimum-wage jobs. More employing of robots than humans. Fewer minimum-wage jobs for those who only have minimum skills to offer.
Some economists argue this will not happen. In the Star story, the Canadian Centre for Policy Alternatives said research suggests the dire predictions are unlikely to pan out.
My question to these experts: How many minimum-wage employees do you employ? Let’s compare your numbers to the various business experts who are telling us that jobs will be lost.
It is simply common knowledge that business will not absorb this type of increase. It will pass it on to customers. So who exactly will benefit from this inflationary measure? Certainly not those in minimum-wage positions or those on fixed incomes who have no way to supplement them to cover the increased costs.
There is an election upcoming and this province has a very tired government desperately trying to cling to power. Enough said. J. Brunins, Britt, Ont.
“God forbid that the money going to low-paid workers would eat into the payouts for the poor shareholders.” TIM HEFFERNAN TORONTO