From bad to worse? Some of the GTA’s top boards of trade are sounding the alarm on “disruptive” minimum wage increases that have the potential to cause further damage to businesses still dealing with the effects of the COVID-19 pandemic.
The province’s wage hike, which will go into effect on Jan. 1, 2022, will see minimum wage per hour from $14.35 to $15, in a bid to prevent workers from “falling behind” on the cost of living. “Wages for many have not kept up with the cost of living,” said finance minister Peter Bethanfalvy. “Ontario workers should be in a race to the top, not a race to the bottom.”
For local businesses, however, they may not be prepared to absorb additional debt after months of revenue loss caused by government-mandated shutdowns caused by the pandemic. “Many businesses are still grappling with the ongoing impacts of the pandemic, including cashflow constraints and the increased cost of doing business; this is no time to add to their costs.,” said the Ontario Chamber of Commerce (OCC) CEO Rocco Rossi earlier this week.
“The way the proposed changes are being implemented, leaving employers with less than two months to plan, will have considerable administrative and financial impact amidst a pandemic and after 20 months of duress.” Rossi went on to say that the OCC was “disappointed with the lack of consultation on such a significant policy shift and departure from the scheduled wage increases. “It is dangerous to bring in major new labour reforms without addressing or protecting against unintended consequences, such as job losses, rising consumer costs, service cuts, and economic hardship for businesses and our greater economy… the government needs to re-evaluate the timeline and consider debt forgiveness for impacted businesses to support this unanticipated change in policy.”
Others say the $15 per hour wage isn’t enough, including NDP leader Andrea Horwath, who called on the province to do more to protect workers struggling with cost of living increases. “$15 an hour isn’t nearly enough anymore. Workers need a bare minimum of $17 an hour to cover the cost of living,” Horwath said Tuesday.
“(The NDP) has never believed in Doug Ford’s low-wage policies for Ontario’s working people — we believe all working people should have a chance to build a decent life here.” Mississauga Board of Trade (MBOT) CEO Trevor McPherson also spoke Tuesday regarding the announcement, noting that the wage increase has the potential to “ significantly impact” businesses next year. “After the devastating impact of the COVID-19 pandemic on the very businesses that will be most affected by this large increase to minimum wage, we hope they will be able to survive next year.
