Lobby group asks Sousa for wage increase help
Fallout coming to fruition after minimum pay hike, Chamber of Commerce says
Ontario’s largest business lobby group is appealing to Queen’s Park for additional help to offset the impact of the $14-an-hour minimum wage. The Ontario Chamber of Commerce, which has 60,000 members in 135 communities across the province, has asked Finance Minister Charles Sousa for an assistance package in the next provincial budget.
“For months, the OCC has forewarned that any objective analysis of these changes will lead to significant job loss, a 50-per-cent increase in inflation over and above what would otherwise be expected in the next few years and an acceleration toward automation,” the chamber said Wednesday.
“Now, we are seeing these consequences come to fruition, as businesses take extraordinary actions,” it continued. “The implementation was too much, too fast. It is clear that the government of Ontario must take further action to mitigate the unintended consequences of Bill 148.”
To that end, the chamber wants Sousa “to provide offsets in the upcoming budget that will help employers manage this drastic increase in labour costs.”
“We must ensure that we are doing all we can so that Ontario remains competitive,” the chamber said.
Although Sousa was not available for comment Wednesday, his office noted that, when the hourly wage jumped from $11.60 to $14, he also lowered the small-business tax rate from 4.5 per cent to 3.5 per cent to ease the burden.
“Ontario’s economy is growing and we’re raising the minimum wage to make sure that everyone benefits from this growth,” said Jessica Martin, the treasurer’s press secretary.
“Throughout this transition, we said we would work with small business and that’s why, in the fall economic statement, we lowered the small business tax rate,” Martin explained.
“As we move forward with the budget process, we will continue to bring forward initiatives to create fairness and opportunity in this province.”
The OCC’s concerns come as some Tim Hortons’ franchisees are warn- ing the higher labour tab will cost them an average of $243,889 per outlet.
In one high-profile case, the children of the chain’s co-founders are reducing benefits to workers in response to the wage hike at their two franchises in Cobourg.
Ron Joyce Jr., whose father cofounded the coffee shop chain, and his wife, Jeri Horton-Joyce, daughter of Tim Horton, told employees they would no longer be entitled to paid breaks and now must pay more for dental and health benefits.
The two said the changes were due to the hike in wages. Unlike independent businesses, franchisees cannot simply raise prices to offset higher labour costs.
The issue has sparked a feud with Tim Hortons’ head office, which has dubbed them a “rogue group,” the actions of which “do not reflect the values of our brand.” Premier Kathleen Wynne, who raised the wage as the June 7 election approaches, has weighed in, calling the franchisees “bullies.”
The Ontario Federation of Labour organized protests Wednesday at Tim Hortons’ outlets across the province, including Cobourg.
“Let’s brew up some ‘double trouble’ for bad bosses at Tim Hortons,” the Ontario Federation of Labour said. NDP Leader Andrea Horwath was among those at the Cobourg rally.
“Millionaires are taking away minimum-wage earners’ paid breaks, clawing back more of their paycheques for things like benefits that used to be covered or calling workers contractors, instead of employees, to get out of providing some pay or benefits,” said Horwath.
“There are workers, including staff at some Tim Hortons’ stores, taking home less pay this month than they did in December because employers are punishing them for the minimum-wage increase. That’s just wrong. And workers need us all to have their backs and amplify their voices.”