Many residents hope for a living wage
Ontario’s current minimum wage sits at $11.40, rising steadily every year in accordance with Premier Kathleen Wynne’s promise to keep up with inflation. However, campaigners in Ontario are now hoping to encourage the Liberal government to follow Alberta’s lead for a $15 minimum wage.
Alberta’s current $12.20 minimum wage is already the highest among the Canadian provinces and their NDP government has promised to raise it by $1.40 per year to reach their $15 goal by 2018.
Ontario’s “15 and Fairness” campaign is fighting for worker’s rights, unions, and equality in workplaces across the province.
This is in addition to a $15 minimum wage without exemptions, such as students who are often paid less for doing the same job.
However, some repercussions of a minimum wage increase could include a domino effect for wage increases so that upper-level management positions aren’t being paid the same amount as their workers. Consumers would also have to pay more to account for larger labour costs.
While some have expressed concern that small business owners might not be able to afford the increase in labour costs, experts have demonstrated ways that a higher minimum wage could actually help in the long run.
Pam Frache, provincial co-ordinator of the group Fight for $15 & Fairness, said in an interview with CBC News, “Most small businesses will tell you the most important thing they need is customers and if workers don’t have money to spend, they can’t participate in the economy.”
Other locations have already proven that a higher minimum wage can be successful. Seattle updated their minimum wage to $15 in April 2015, and while many businesses, such as restaurants, were forced to raise their prices, they were able to keep customers happy by administering a no tipping rule.
An article published by The National Post warns that raising the minimum wage overnight could cause significant job loss, a spike in inflation, and businesses closing their doors and suggests that the key to success for a minimum wage increase is phasing. By steadily implementing a wage increase every year, businesses could have a better chance to manage and plan for the rising costs.
Photo by Mariah Bridgeman/The Ontarion