Ontario To Raise Minimum Wage

by Terry Wilson
Canadian Awareness Network
January 28, 2014

am980.ca
Ontario’s lowest paid workers will likely get a raise this year when the $10.25 an hour minimum wage is hiked for the first time in four years.

Sources say a special panel set up to look at ways of adjusting the minimum wage will recommend it be tied to the inflation rate, and that businesses get four months warning of any increases.

The panel did not say what the new rate should be, but sources say the minimum wage will be increased retroactively back to 2010 based on the rate of inflation since then.

Business groups warn a hike in the minimum wage will only hurt the very people it’s supposed to help by driving up costs, resulting in fewer jobs. However, the Ontario Chamber of Commerce last year called for future changes in the minimum wage to be tied to the rate of inflation.

Premier Kathleen Wynne says businesses and individuals should be pleased at having a more predictable system in place.
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Raising the minimum wage in Ontario has been a top priority amongst the political “left” for the last few years and has been heavily scrutinized by economists and business owners. Below is an example of why they oppose the move. (it is an American video but does highlight the issues of raising minimum wages)

The move is more likely to hurt the workforce in Ontario rather than helping workers. In fact many see that this move will only encourage businesses to replace workers with computerized stations.

This move is also coming on the heels of a huge spike in hydro costs for the province. Media has been reporting a 46% increase on hydro prices over the next five years, and the Ontario NDP is stating the increase will be in the 74% range.

A move that is driving the remains of Ontario’s manufacturing base out of the province. Why would a manufacturer set up shop in Ontario, when they can do so in another province or country while having less power charges?

It seems that every move this provincial government makes is just another nail in the Ontario job market’s coffin.