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WATCH: Minimum Wage rising to $11 an hour in June

Increasing the rate by 75 cents marks the first change in four years.

It's gone up by 75 cents.

The province has announced the new minimum wage will be $11 an hour as of June 1st.

This comes after a panel released its recommendations on what to do and it looks like Ontario listened.

Premier Kathleen Wynne says this announced hike builds on inflation of the last four years,  when the minimum wage was frozen in 2010.

The province will also introduce legislation to make this a yearly event, giving businesses a four-month heads up on April 1st of a year for a hike which will be implemented in October.

Special interest groups continue to call on the province to bump minimum wage to $14 and hour, in order to get workers over the poverty line.

Meantime, PC Economic Development, Trade & Employment Critic Jane McKenna is questioning whether this is a smart move.

McKenna says it could lead to reduced hours for minimum wage employees, or worse, job cuts so businesses can deal with the extra cost.

As for what the Tories would do when it comes to minimum wage, McKenna would only say the province needs to look at the big picture. She says a healthy business environment needs to be created to prevent companies from leaving the province.

NDP leader Andrea Horwath issued a statement, underlinig her party will look at the proposed Liberal legislation. She says people who work hard and are responsible, shouldn't be stuck in poverty.

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  1. Angry Bill posted on 01/30/2014 01:08 PM
    Say hello to price hikes across the board. Raising prices and laying off people is the only way small businesses with a small profit margin can survive. End result will be there is no increased buying power with this raise, as the prices for everything will rise to compensate. That's what happened the last time, and it'll happen this time, too.

    Must be an election coming up.
    1. Frankie posted on 01/30/2014 01:30 PM
      @Angry Bill I believe it's sustainable for most businesses that hire at minimum wage and it'll help workers.

      The biggest drain on the economy is government waste. Imagine using a colander to fill a glass. 2-3 glasses would be wasted in the process. That's our biggest problem and it'll continue until enough voters get the message across.

      The biggest losers are the middle class as the rich have enough left over and the poor don't pay tax.
    2. BS posted on 01/30/2014 02:12 PM
      @Angry Bill oh go stick it where the sun don't shine.
      maybe if these small business can't pay proper wages they shouldn't be in business. I'm sure their suppliers raise their costs. labour has to move accordingly and with inflation. long overdue.
      maybe your answer is bring over half the population from Bangladesh to work in the small business sector at their current wage they get to make t-shirts
    3. Jim posted on 01/30/2014 02:13 PM
      @Frankie Obviously you aren't a small business owner. A 7.5% hike to total wage costs is not sustainable. They will have to either increase prices or reduce overall wage costs to maintain profitability. This is how jobs are being driven out of Ontario. This won't help the working poor. Try increasing the personal tax exemption limit or remove the HST from gas.
    4. Angry Bill posted on 01/30/2014 03:10 PM
      @BS Your initials are extremely suitable for you, judging by your short-sighted comments. So every company that can't afford to pay what you consider to be "proper wages" should go out of business... yeah.. I'm sure that'll make the newly unemployed workers extremely happy. They will make far less than minimum wage on welfare, son. Which is where they will be, if their employers go out of business as you suggest they should.

      And if people like you are too proud to work at a minimum wage job, then by all means.. go ahead and bring over half the population from Bangladesh. Just don't complain that they're stealing all your jobs. Jobs that you originally considered to be beneath you.

      Another poster had it right.. you keep raising the wages, and companies WILL look for cost savings.. usually in the form of replacing formerly cheap workers with technology that has suddenly become cheaper than the workers.

      What form will your complaints take at that point, BS? That the companies are scumbags because they won't pay more for workers when they don't have to? Companies exist to make a profit.. not to be a communist charity.
    5. Angry Bill posted on 01/30/2014 03:17 PM
      @Frankie You're probably right, Frankie, in that most businesses that hire at minimum wage might be able to sustain the increase. I will maintain, however, that there will still be a good number that cannot. That translates into people who were working, and now are not. And another failed business that is just another Ontario statistic.

      I also agree with your reasoning that the middle class are the hardest hit.. The government knows this, and they do it on purpose. Their reasoning is that it's because there are so many of them.
    6. AC posted on 01/30/2014 04:18 PM
      @Angry Bill i think idiots like you should get your head out of your backside and maybe work for min wage for a while like many do with kids and try to get by paying for transportation/rent/food/clothing in this city and then have the views that you have.
      that's what i think you need.
      much easier to talk about others Bill when you know hey i'm ok, my family is ok.
      well! I'm ok Bill very much ok but many are not and shouldn't be taken advantage of in my opinion
    7. Mark posted on 01/30/2014 06:13 PM
      @Angry Bill Your right. What would work better would be mandatory profit sharing! After all without workers most businesses wouldn't exist...
    8. JP posted on 01/30/2014 11:54 PM
      @BS @BS.. Frankie has a valid point, that you use vulgarities, it seems like he hit a nerve with you. As im sure based on your reply, you never studied economics. Its the small business owners, that employ US the TAXPAYERS, and remember all the big corporations started out small. I am a small business owner, I have 5 employees, and if I am FORCED to pay them more, guess who pays more?? YOU the end consumer. and if YOU pay more, you wont go out and spend more, and the ball starts rolling DOWN HILL.
    9. MichaelP posted on 01/31/2014 08:41 AM
      @Angry Bill You couldn't be more wrong about the impact that the increase of min wage will have on prices and the decreased buying power Bill.
    10. HP posted on 01/31/2014 09:26 AM
      @MichaelP He's very right...it's a huge impact on industries that survive paying minimum wage, especially hospitality, food service, retail, mostly everything in the service sector. Some employees can make more in commissions or tips, but most customers will refuse to pay the additional costs, especially in hotel housekeeping, unskilled labour, retail customer service, call centres, financial services, etc. These companies have only two controllable costs, payroll and rent. They watch every penny as any increase in operating costs means less income and a loss of market share if they raise prices.

      Look what Walmart did to the Canadian retail scene...most of the full line, full service department stores are gone, those that are still here have become mass-merchants and have squeezed all of their Canadian manufacturing suppliers into bankruptcy. Those that didn't become importers and distributers are gone. I still remember that huge Sunbeam plant on Islington where they made appliances and BBQ's...now it's just a hole in the ground being turned into more condos.
    11. MichaelP posted on 01/31/2014 09:33 AM
      @HP none of what you're saying has anything to do with min wage going up 75 cents and being tied to inflation going forward.

      He said this "End result will be there is no increased buying power with this raise" - HE IS WRONG. If he, or anyone else, thinks that a 7% increase in the min wage will create 7% inflation then they are fools of the highest order. These people do not understand economics at all and shouldn't pretend to.

      Will this increase in min wage work it's way into the cost of items? Of couse. But wages are only 1 factor in the costs of goods. And not all goods are impacted by this. The impact of this change will be minimal. The cost of groceries will not spike 7% the day the new min wage goes into effect, nor will the cost of gas, hydro, etc.
  2. Mark7 posted on 01/30/2014 02:04 PM
    A typical Fiberal ploy to buy votes as per usual. I am not fooled by criminal Wynne.
  3. AD posted on 01/30/2014 02:13 PM
    I'm surprised nobody in the government has the brains to see the cycle that has been created with wage hike=price hike=need for wage hike
    we need some way more creative thinking in education, housing, taxation to get over the hurdles we are setting up for our less fortunate upstart Canadians.
    1. Frankie posted on 01/30/2014 03:08 PM
      @AD The smart ones do. Unfortunately they're like prostitutes, opening our wallets to feed their habits and keep their profession.

      Until enough citizens understand this type of wasteful spending hurts their lives this will continue.

      Let's hope enough of us wake up before it's too late.
  4. Zack posted on 01/30/2014 02:27 PM
    Minimum wage is meant to be just that: the minimum. As in, just enough for one person with no special skills or education and no dependents to keep themselves fed and sheltered. You're not supposed to try and raise a family or buy a house on minimum wage, you're supposed to either live within your means or get yourself to the library and research how to acquire the skills to EARN more money.
  5. Will posted on 01/30/2014 02:39 PM
    If it weren't for the public sector taking home bloated wages they don't deserve, our taxes wouldn't be so high and we could all take home more of our pay, and nobody would even be talking about giving unskilled burger flippers and cashiers a higher wage than they deserve. What we need is for Comrade Wynne to call an election so we can finally get her irresponsible government OUT and elect one with sound fiscal sense.
  6. john posted on 01/30/2014 02:59 PM
    hears how it is going down .

    wages go up companies move out to Alberta

    companies need to make this thing called profit to keep going . so .

    as for taxes thay will up the wages and then raise up taxes companies will not make profit so thay will move out and go elsware . simple as that .
  7. john posted on 01/30/2014 03:07 PM
    heres what i say about the partys of ont .

    liberals only nature is to F%^$%$&^%%uk up the province

    the cons only nature is to clean up the crap that the liberals left behind .

    the NDP is to not only sit there and bitch all day but kiss the liberals ass .and help the liberals f^&*%&$%ck things up thats why the NDP has brown noses .
  8. KarenW_5 posted on 01/30/2014 03:57 PM
    Not that 10.25 per hour isn't brutal in this day and age but does no one find it strange that they haven't raised the minimum rate since the last election. Buy, Buy, Buy the sucker voters; 75 million for wine and 25 million for a hospital we know will never get built, all they've been doing for the last 3 months is spending money we don't have or making promises they'll never keep. Speaking of $, can anyone tell us where the 8% per litre they have stolen from us since July 1, 2010 (HST) is or where those billions have been dumped.
  9. GT posted on 01/30/2014 04:41 PM
    As a small business owner I can say with the increases in rent,hydro,heating fuel and now this.I have no alternative to reduce hours for employees.I will cut back and service will suffer.Frankly, we cannot afford this provincial government any longer.
  10. Frankie posted on 01/30/2014 04:46 PM
    Wonder if Wynne is going to tie the amount the Liberals "steal" from us to the rate of inflation.
  11. KarenW_5 posted on 01/30/2014 05:57 PM
    Add to that the great addition of Family Day. The only people who win with this are public employee and again, tax payers pay and small business pay. Voters put the Liberals back into power to get one extra day per year not thinking this costs millions to private businesses out there.
    1. kat muscillo posted on 01/30/2014 09:07 PM
      @KarenW_5 I work for the public sector, and just to give you a little insight..I pay taxes, and have been working 27yrs and just break as a front line worker who pays taxes $50.000.00 before taxes...so never think honey the grass is always greener on the other side
    2. KarenW_5 posted on 01/31/2014 08:15 AM
      @kat muscillo I have never had an issue with front-line workers, what I have a problem with is the bloated middle and upper management and the off-shoot, arms length agencies that eat away at the taxes we all pay. I have been working for 45 years and I've seen both sides of the grass. My point abut Family Day is most of us in the private sector have to pay to give staff a day off. The public employee, although they pay taxes, is being paid by our taxes. And, $50 grand a year is not chump-change, plus benefits, pensions, vacation, sick-days, etc.
  12. kat muscillo posted on 01/30/2014 08:56 PM
    Ok, here is a concept, why as the government do what is right and put money back in the tax payers pocket inside of raising the minimum rage that will increase prices across the board and again who wins...the egotistics people that we have in government , it truly makes me sick ,that they all go home and do not feel what their flamboyant spending ways impact on us who they are working for, cut our taxes that pay for their poor judgement, back into our pocket...talk about self entitlement...get off our backs, get a job, and do what the "Government" was supposed to do...WORK FOR US the tax payer and stop gauging us...you bunch of narcissistic bottom feeders
  13. HP posted on 01/31/2014 07:38 AM
    Now Sears announces that it's laying off 5 employees per store, Best Buy/Future Shop about 10. The retail, fast food, hospitality, and grocery stores are not yet laying off but are cutting back hours. The next step will be to raise prices as fewer people with jobs, more people making less, less spending, less revenue. Everyone in business understands that every $1.00 increase in payroll costs them $1.75.
  14. MichaelP posted on 01/31/2014 08:43 AM
    I just hope that they tie this thing to inflation and leave it that way forever instead of making this a political issue every 5 or so years. Freezing it and then catching it up all at once is a dramatic shock to business and a stupid way of handling this and that's what we've done for decades.
  15. Angry Bill posted on 01/31/2014 12:53 PM
    What really makes me sad in my pants is Wynne is right.. this will get her votes from the many, many gullible people out there who know nothing about economics, and who don't even want to learn anything about it.

    Her own report that she commissioned said there would be a negative impact on the Ontario economy if she raised the minimum wage. She promptly ignored that report that she spent money to commission, and rightly figured that there would be enough stupid people out there who would be sucked in by this, and vote for her. It's enough to make baby Jesus cry.
    1. rankie posted on 01/31/2014 01:22 PM
      @Angry Bill No different than the Drummond report McGuinty commissioned then promptly ignored.

      These Liberal voters should all audition for the finale to Dumb and Dumber called Dumbest.
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