September 10, 2017

Wynne's minimum wage hike has Dollarama cutting staff

Ezra LevantRebel Commander

On Friday's show, I reported on the disastrous effects of Kathleen Wynne's plan to increase Ontario's minimum wage to $15/hour.

The legislation hasn't been implemented yet but Dollarama has already announced they will be cutting staff in a move towards increased automation.

Kathleen Wynne hasn't run a business; she doesn't understand the thin profit margins that retailers have to work with.

WATCH to see why I think the wage increase will mean dollar stores will likely have to make $500 more in profit each day just to keep Wynne's promise.

Comments
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commented 2017-09-10 15:27:15 -0400
It’s fairly implicit in the wage hikes forcing automation. Automation improves productivity, and job quality will also improve simply because they’re not going to pay 15 dollars for 10 dollars of work – they’ll change the jobs into 15 dollar an hour ones to meet wage expectations.

Usually job quality drives wages, rather than vice-versa, but the end result is the same.

Incidentally, the “back end” for the self-checkouts usually creates some pretty high quality jobs itself. Your minimum wage labour maintenance skills top out at changing the little roll of paper in the receipt printer.
commented 2017-09-10 14:55:17 -0400
Andrew Stephenson commented,“This is excellent news, automation will improve job quality immensely. Tripling per-worker productivity means you can double their pay while still reducing prices and improving profitability. Perhaps this will turn retail services back into a middle class job category which would be an incredible outcome.”

How do you back up this statement Andrew?
commented 2017-09-10 13:58:48 -0400
The problem with Wynne’s Min Wage increase is it is phased in too fast. Next month sees a modest increase from 11.40 to 11.60.
It then goes to $14 per hour on January 1, 2018 and $15 per hour on January 1, 2019
So from October to Jan it goes up $2.60
The problem with an Ontario-wide minimum wage is that parts of Ontario are much cheaper to live in. Toronto has become expensive with just a bachelor apt costing 1100 a month now. But the solution is simply less immigration to Toronto not a higher minimum wage. Major cuts in immigration would quickly see rental and housing costs go down. There is not enough housing to sustain Trudeau’s immigration levels.
Still, the Ontario economy will not collapse while Donald Trump is US president. But I am willing to bet Wynne, with 17 percent popularity will lose the next election and the Conservatives will win and freeze the minimum wage.
commented 2017-09-10 13:50:09 -0400
Staff cuts, price increases. Ergo, less people working and less people coming in to buy the now not-as-cheep cheep stuff. Oh yes, because of job layoffs, lower end income earners will simply do without something from Dollarama, and don’t forget about the strain on UI.

Score another one for the gold spoon in his mouth Baby Doc Trudeau, someone who never really had a hard working or simply mind-numbing boring job in his life.
commented 2017-09-10 13:45:38 -0400
This is excellent news, automation will improve job quality immensely. Tripling per-worker productivity means you can double their pay while still reducing prices and improving profitability. Perhaps this will turn retail services back into a middle class job category which would be an incredible outcome.
commented 2017-09-10 13:01:10 -0400
The winter will be bleak for many in the entry level service industry – the liberals have brewed up the perfect economic storm – increased energy costs, taxes, inflation and decreased take home pay or work hours. Come spring there will be a lot of low income families decimated by this economic squeeze
commented 2017-09-10 10:52:36 -0400
So many of our politicians are made in the Obama mold. No experience of life outside of community activism wherein they excoriated capitalists who supplied the money for all their little schemes. They could excoriate them because they had no experience in actually making money- only spending other people’s more.

The difference between an Obama supporter ( or any Liberal) and Trump supporter is that one signs the cheque on the back and the other signs the cheque on the front.
commented 2017-09-10 09:55:20 -0400
Wynne is trying to bribe minimum wage voters with other people’s money. I don’t think it will do her much good. The Sudbury bribery trial is starting, it should be interesting.
commented 2017-09-10 09:54:15 -0400
So, when youth are being skipped over because they bring very little to the table, in terms of job experience, how will the Liberals address this?!!!! They can’t bully people into hiring them!

I was speaking to a small business owner who over many years, gave young people their first job & invested in training them….given entry level positions & receiving raises when their performance markedly improved. Just under half of these students worked out really well, some just showed up and needed close supervision, and others he regretted hiring in the first place. He talked of a few “nightmare-type employees”

He explained his strategy will have to change, because he can’t afford to do this anymore; the minimum wage hike cemented the decision for him. Instead, he plans to hire people with a proven track record of employment and excellent references.

Wynne is trying to turn Ontario into Venezuela! The Liberal government provincially and federally are corrupt beyond description!
commented 2017-09-10 09:34:12 -0400
I agree Jamie, it’s intentional destruction of capitalism which is exactly what her green energy scam is for too. Along with the carbon tax and all other miscellaneous taxes. They are tools for the destruction of jobs, and ultimatley families, and lives.
commented 2017-09-10 08:46:21 -0400
“Kathleen Wynne hasn’t run a business, she doesn’t understand the thin profit margins that retailers have to work with.”

Geez! I wish you’d stop attributing to ignorance that which is best explained by malice. It’s not that Wynne doesn’t understand basic business principles….it’s that SHE DOESN’T EFFIN CARE!!!!

Quit giving her the easy out.