BY PAUL JUNOR
The PC-led government of Doug Ford announced on Thursday, November 1st, 2021 that minimum wage would increase from $14.35 per hour to $15.00 per hour effective January 1st, 2022.
Since the election of Doug Ford in June, 2018 there has been opposition to cuts to public spending and social support programs. His cancellation of the planned increase in the minimum wage to $15.00 per hour on January 1st, 2019 irked many within the labour, social and progressive movements. It was only in October 2020 that there was an increase in the minimum wage by a dime to $14.35 per hour.
There was a freeze in the minimum wage at $14.00 per hour for two years. Andrea Horvath, Leader of the NDP has been putting pressure on the Conservative government to increase the minimum wage. She states in the Ontario Legislature on November 1st, 2021 “The cost of everything is going up and yet wages here in Ontario remain flat. Of course, the leading culprit for keeping wages low in this province is in fact the premier of Ontario.”
Premier Ford reacted by stating, “We are the only party to create an environment for people to have a job.” Labour unions, social justice groups and advocacy organizations have been calling on the Ford government to increase the minimum wage over the last three years to no avail. The Ontario Federation of Labour (OFL) has been supportive of an increase to the minimum wage. “Low wages are bad for workers as individuals. An individual working full-time on the minimum wage can still fall short of the poverty line. For years, we have heard that raising the minimum wage will kill jobs, raise prices and cause businesses to flee Ontario. This is fear mongering that is out of line with the latest economic research.”
It was reported that Premier Ford made the announcement of the increase in the minimum wage in Milton, Ontario. He states, “Workers deserve more money in their pockets.”
The NDP released a statement in advance of Premier Ford’s news conference, which read, “By cancelling the planned $15 minimum wage three years ago, Doug Ford has taken more that $5,300 out of the pockets of Ontario workers to date. The cost of everything has skyrocketed since then- like housing, auto insurance, food and gas and $15 an hour is nearly enough anymore.”
There have been negative reactions to the announced increase in the minimum wage by two business groups. The Canadian Federation of Independent Business states that the timing of the increase is bad for small businesses who were not consulted prior to the decision by the government. It released a statement, which reads, “We urge the government to reconsider the timing of its proposal, conduct an economic analysis and consult with the small business community on the best path forward.”
Rocci Rossi, Chair of the Ontario Chamber of Commerce also released a statement. It reads, ”Many businesses are still grappling with the on-going impacts of the pandemic, including cash flow constraints and the increased cost of doing business; this is no time to add to their costs. The way the proposed changes are being implemented leaving employers with less than two months to plan. This will have considerable administrative and financial impact amidst a pandemic and after twenty months of duress.”
