March 20, 2015

How will October's Ontario minimum wage increase impact businesses?

Emily PrattRebel Correspondent
 

Ontario's minimum wage will increase on October 1, as announced by the Liberal government this week.

The boost in basic pay is receiving a warm welcome from workers, but what about small businesses?

I spoke with Plamen Petkov, Vice President of Ontario and Business Resources at the Canadian Federation of Independent Business, to talk about what this 25-cent raise will mean for employers.

 

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Comments
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commented 2015-03-23 00:50:21 -0400
Having grown up in the GTA and moved to Eastern Ontario I really see things a bit differently. I understand small businesses when they are starting out wanting to keep expenses down however when they do start to grow many do not share the success with their highly valued employees. I know of far too many people whose only raises come when the government increases minimum wage and if that isn’t enough often the employer finds away to claw the money back by eliminating their paid breaks or cancelling their benefits. I’m sure there is dozens of easy fix remedies people can throw off from “just work harder” to “increase your education” all great considering a good portion of your pay goes to just keeping your car on the road and rent. Not much left over to plot your career path.
commented 2015-03-22 12:21:35 -0400
A higher minimum wage actually hurts the middle class. When you raise the wage the price of all things go up. Remember when the value meals were 99cents now 1.19 or more. The stores will always pass on the cost to the consumer. The middle class will not be getting a raise Oct 1st so there purchasing power will be going down.
commented 2015-03-21 22:58:51 -0400
A higher minimum wage means that fewer workers will be hired. Unemployment will increase.
commented 2015-03-21 12:18:48 -0400
Money flows in Ontario. Taxes grow in Ontario. Household debt grows in Ontario. Hydro One rates grow in Ontario. Nothing good grows in Ontario!
commented 2015-03-21 11:21:09 -0400
It is so much easier for Wynne to increase minimum wage to help low income earners than to increase the basic personal exemption. This way she will not experience a decrease in tax revenues. If this socialist really wanted to help low income earners she would follow the recommendations of the CFIB. This increase will be passed on to all consumers due to the fact small business owners cannot absorb the added costs.
commented 2015-03-21 09:48:32 -0400
Why is it that it seems all the “progressives” do not understand how the economy works? I know this is a gross generalization, but as an overall pattern is appears that they do not understand that when a cost is imposed on a business (small businesses impacted greatest) the business has to give up something to compensate, whether it first be jobs, then possible growth of the business which in turn would help the economy and maybe even make another job opening.

This is the same thing with increasing corporate taxes the progressive always scream about. It affects jobs and economic growth all to take more money from the people and put it in the hands of the government.

I truly will never understand the socialist mind which desperately continues to seek new ways to take the money from the people and give it to government. Socialist reasoning is beyond me.
commented 2015-03-21 09:46:42 -0400
We really need to start electing people that know what that are doing, not people that are trying too buy power and control. Liberals I know do this but the PC look like they are doing the same thing, I will see after they elect there next leader, they need someone with a strong point of view and values.
commented 2015-03-21 08:51:45 -0400
Correction .25/hr=$11.00/wk /person extra…plus all business taxes.
commented 2015-03-21 08:47:45 -0400
It’s all about BUYING votes on the back of small business owners. The Liberals and NDP always say “Vote for me and I will leverage bigger paycheques (then I will raise your taxes and get all of the raise for ME)…but you won’t figure that out…so I stay in power and you think I am Santa Claus.”

Small business owners, in response, have to cut back employees ($.25/hr=$20.00/week/person extra) which means $20.00x 15%, or more now, for business TAX extra deductions, CPP, EI, Health Tax.). (So these politicos get more tax from you and from your boss too.) This means that to make up the LOSS, businesses either have to have fewer employees and/or they have to raise prices in order to stay afloat and we all pay more…but of course Wynne gets more taxes which is what the pay raise is all about, folks. It’s crafty theft, not love, dear. The money is not coming out of the government’s pockets. They are taking it from your boss to ‘GIVE’ to you…playing fast and loose with OTHER PEOPLE’S MONEY and GETTING THE CREDIT while being cunning and unscrupulous. That’s what it’s all about. Why don’t people GET IT?

If they really wanted you to have more money they would tax you less. But they have bought so many votes with your money that they now need to take more of your money…it’s called robbing Peter to pay Paul. You ARE their paycheque, enslaved to big government that YOU CHOSE.
commented 2015-03-21 08:29:07 -0400
Large employers hire one or two less to cover increases or why not just eliminate taxes for wage earners below what is considered the poverty line? Oh yeah, this way I get a few more dollars in taxes…and she really cares!
commented 2015-03-21 07:25:55 -0400
Here’s another way to raise wages Wynne – cut taxes you foul communist pig!!!!!
commented 2015-03-21 00:23:13 -0400
I really don’t give a …. what they do in ON. If they want a Liberal gov’t, that’s fine.
But, they have to pay for it.
I, not an ON, do not like paying/Transfer Payments for their electoral prowess!!
commented 2015-03-21 00:09:54 -0400
Increased minimum wage equals increased cost to small business, which equals increased prices, which equal increased inflation, which equals increased minimum wage, and so on, and so on, and son.
commented 2015-03-20 22:23:44 -0400
That ‘popping’ noise you just heard? That would be the sound of entry level jobs disappearing all over Ontario.
commented 2015-03-20 21:55:02 -0400
Wynne strikes again. Fewer jobs. Small business killer.
Rot in hell Wynne.
commented 2015-03-20 21:40:02 -0400
More people will be working under the table and fewer people will be paying tax or into Canada Pension Plan and the new Ontario pension deduction……just by the way…..does the increase in minimum wage more or less equal the new deduction?. Now mind you it was well intentioned.