Extending Minimum Wage Implementation Will Slash Job Loss Risk by 74%: Sault Chamber

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Today, the Sault Ste. Marie Chamber of Commerce (SSMCOC), in partnership with the Ontario Chamber of Commerce (OCC) and the Keep Ontario Working (KOW) Coalition released two major reports that broadly capture the challenges associated with Bill 148 and the concerns of the employer community. The first report is the final economic impact analysis of Bill 148 by the Canadian Centre for Economic Analysis’ (CANCEA), which was peer-reviewed by Professor Morley Gunderson of the University of Toronto.

CANCEA’s analysis reveals that if Government were to do nothing other than implement the minimum wage increase over five years instead of in the next 15 months, jobs at risk would decrease by 74 per cent in the first two years.

The analysis also indicates that while the proposed changes will see $11 billion in wage stimulus flow into the economy in the next two years, a remaining $12 billion problem exists which will lead to jobs lost, added costs, and general damage to the Ontario economy.

Today’s report comes as the Sault Ste. Marie Chamber of Commerce prepares to host two town hall forums on the proposed minimum wage increase and other changes to Ontario’s labour and employment legislation including changes to vacation time, on-call work, equal pay for temporary and part time workers, scheduling and emergency leave days.

The Town Halls, scheduled for Thursday, September 28th, 7pm to 9 pm and Friday, September 29th, 11am to 1pm at the Civic Centre, will include the Sault Chamber, the Ontario Chamber of Commerce and Sault Ste. Marie MPP, Ross Romano.  The Chamber is also anticipating staff from the office of the Minister Responsible for Small Business to be in attendance.

SSMCOC CEO Rory Ring says, “the Chamber has invited local business to discuss the impacts and concerns that they have with the new legislation but hopes that interested parties will take part regardless of whether they are for against the changes included in Bill 148 so that both sides will walk away with a better understanding of the complete issue.”

“Today’s final report by CANCEA is clear, while the Government is correct to say that there will be a stimulus from Bill 148, it does not cover the $23 billion cost challenge for business in the first two years – a substantial amount that poses great risk to our economy and cannot be resolved through offsets alone,” says Karl Baldauf, Vice President of Policy and Government Relations at the Ontario Chamber of Commerce. “More must be done. The Ontario Government must resolve the economic challenges presented in Bill 148 through a combination of slowing down the implementation period, amending the legislation, and offsets. Business and Government must work together to avoid unintended consequences and protect our most vulnerable.”

The Keep Ontario Working Coalition and CANCEA released interim findings of this Analysis in August, ahead of final amendments being submitted for first reading of the legislation. To date, CANCEA’s work remains the only peer-reviewed economic analysis of Bill 148. In having been reviewed by Morley Gunderson, the work has benefited from one of the leading economists in Canada, who the Ontario Government has turned to on multiple occasions, such as during the Changing Workplaces Review which became the foundation for Bill 148.

“Our risk assessment of the Act is that there is more risk than reward for Ontarians despite the stated goal of the legislation in helping Ontario’s more vulnerable and the Ontario economy,” notes Paul Smetanin, President of CANCEA. “Given the risk of consolidating income and wealth inequality, putting about 185,000 people out of work, and the risks of small/medium businesses being exposed to their larger competitors, the unintended consequences are significant.”

In addition, the Keep Ontario Working coalition released a second report, The Flip Side of “Fair”, which showcases testimonials from employers and outline how they will be impacted by the legislation. The report gives a voice to those businesses who have felt excluded from the committee process and policy discussion around this legislation. The testimonials all share a common theme, that the minimum wage increase and labour reforms will have serious consequences for their business and their communities.

The KOW Coalition will continue to advocate that the government:
– Consider the risks outlined in this economic impact analysis while also conducting their own analysis;
– Implement broad amendments to Bill 148; and,
– Slow down implementation to avoid unintended consequences and protect Ontario’s jobs, communities and our most vulnerable.

The CANCEA Final Economic Impact Analysis of Bill 148 can be read HERE.

The Flip Side of Fair Report can be read HERE.

The Keep Ontario Working Coalition (KOW) is a broad-spectrum group of business sector representatives concerned with sound public policy to help produce jobs and grow Ontario. For more information please visit www.keepontarioworking.ca.

Members include:

Association of Canadian Search, Employment and Staffing Services (ACSESS)
Canadian Franchise Association (CFA)
Canadian Federation of Independent Grocers
Food & Consumer Products of Canada (FCPC)
Food and Beverage Ontario (FBO)
National Association of Canada Consulting Businesses (NACCB Canada)
Ontario Restaurant, Hotel and Motel Association (ORHMA)
Ontario Chamber of Commerce (OCC)
Ontario Federation of Agriculture (OFA)
Ontario Forest Industries Association (OFIA)
Ontario Home Builders’ Association (OHBA)
Ontario Real Estate Association (OREA)
Restaurants Canada
Retail Council of Canada (RCC)
Tourism Industry Association of Ontario (TIAO)

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Sault Ste. Marie Chamber of Commerce
The Sault Ste. Marie Chamber of Commerce has been serving the Sault since 1889. Two years after the first Canadian Pacific railway reached Sault Ste. Marie, a group of businessmen formed an organization dedicated to community welfare and development. During the two years leading up to the Chamber's founding railway spurred an economic boom. Business prospered, the population doubled, and on June 25, 1889 forty businessmen organized the Sault Ste. Marie Board of Trade. Today, this non-profit organization continues to serve the interests of business in a rapidly changing economy. The Sault Ste. Marie Chamber of Commerce is funded through annual membership of its's member businesses and agencies, enabling it to advocate on behalf of business. Through the years, the Chamber has worked closely with the business community and various levels of government to find solutions to challenges faced by the community and has spearheaded numerous solutions.

2 COMMENTS

  1. The extra cost will not only be transferred to the consumer but the people most adversely affected will be those getting the increase.
    An increase of this size to minimum wage may have more of an adverse affect than people think because this will cause all other wages to be reflected and keep pace. This is a great bargaining chip for unions and Wynne just might be biting off more than the province can chew in buying votes, in reality she could be eroding some of Ontario’s competitiveness in the international marketplace.

  2. The Wynnedbag is out of her mind. The sooner she goes the better off we will be, do not forget this when it comes time to vote.

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