Ontario businesses eye fleeing over minimum wage hike

TORONTO – One-third of small and medium Ontario businesses are considering selling, moving to the U.S. or closing shop in response to provincial government plans to hike the minimum wage to $15 an hour, a Canadian Federation of Independent Business (CIFB) poll of its members revealed.

The organization, which is raising red flags about plans to move from the current minimum wage of $11.40 an hour to $15 an hour by Jan. 1 2019, asked its members what actions they were considering to adapt to the series of hikes.

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  • Alain

    What most people fail to understand is that when government decides a “minimum wage”, it hurts everyone. Hiking it to $15 an hour means that in reality it cost the employer more than that once all the other required benefits are factored in. This is just another form of communism in that it amounts to redistribution of wealth in the area of employment leaving the business the only option of closing, moving elsewhere or not hiring.

    • shasta

      For the government to be specifying the value of labour is just as ridiculous as it would be for it to specify the value of any other commodity like wheat or copper.

      • A Hamilton Guy

        Business will be taxed on that increased employment cost, thus another hidden tax that will be picked up by the unaware public.
        Liberals love it.

        • krystal10

          Goods and services will increase in price. Meanwhile, unemployed people will also increase. These unemployed people will not be able to buy as much goods and services.
          A ferris wheel.

    • Watchman

      Many unionised workplaces have employment contracts with individual (large) companies that have negotiated wage rates tied to minimum wage rates. This means that even though union workers might be receiving $22 and up already, the rise of minimum wages to $15 will increase their own pay. https://www.forbes.com/sites/timworstall/2015/01/12/just-why-are-the-unions-supporting-a-rise-in-the-minimum-wage/#2b3570a33ae4

      The unions who support Wynne would love this minimum wage rate of $15 per hour, and are likely to support her even more enthusiastically were she to make this happen.

      • andycanuck

        So it is the same here as in the States. Thanks for the confirmation.

        • Watchman

          It’s almost impossible to easily find union agreements with employers since the employers and unions don’t want this information to become public as it can compromise both party’s negotiations with other entities.

  • moraywatson

    To create a sustainable marketplace for labour, the minimum wage should be $0.01

  • DMB

    Here is one large manufacturer already threatening to leave Ontario if minimum wage increases to $15.00 hour.
    https://www.spencerfernando.com/2017/07/22/magna-ontarios-largest-auto-sector-employer-warns-may-leave-province/

  • PaxCan

    It will also attract people from across the country, especially the tidal of wave immigrants (both legal and illegal) seeking the higher wage and consequently increasing the supply of labour. This mostly hurts the already economically vulnerable.

    I don’t think they thought this thing through and it appears to be an act of desperation by a failing government and it’s gaggle of mediocrities trying to salvage their pathetic political careers.

  • andycanuck

    The case in the States is that alot of union wages are tied to the minimum wage so it’s a union wage-hike too. (Government unions too.) So I wouldn’t be surprised if that’s the case here too.