Media Release
Local businesses agree with the independent economic analysis showing that the Wynne Government’s proposed labour law changes will hurt Ontario businesses and could cost many workers their jobs, says Parry Sound-Muskoka MPP Norm Miller.
The report, released last month by the Ontario Chamber of Commerce, suggests the Government’s Bill 148, which includes raising minimum wage and other changes to the labour law, will put 185,000 jobs at risk over the next two years.
“I surveyed businesses here in Parry Sound-Muskoka to find out how local jobs would be impacted and I heard the same message,” said Miller. “Asked how the increase in minimum wage would impact their business, 60% of respondents said they would raise prices, 45% said they would cut employee hours, 29% said they would lay off staff and 8% said they would close.”
Beyond the minimum wage increase, Bill 148 proposes to change scheduling requirements to force employers to pay employees three hours pay for shifts cancelled within 48 hours of the shift, something that weather-dependent businesses like golf courses and construction companies were concerned about. It also proposes requiring on-call employees be paid for three hours for every day they are on call, which would have a huge impact on emergency service providers like towing companies and companies that provide snow plowing services.
“Many of these changes are going to be especially hard for the retail, tourism and hospitality businesses so important to our local economy. Unfortunately the government’s only consultation on this took place this summer when businesses that rely on tourists are too busy to present to a legislative committee,” added Miller.
“These changes are happening too fast, not giving businesses time to adapt,” said Miller. “I will make sure the voices of local businesspeople are heard at Queen’s Park when we get to debate this bill in the Legislature.”
Highlights of MPP Miller’s Parry Sound-Muskoka Summer 2017 Business Survey
Asked how the government’s planned increases in the minimum wage would impact their businesses and invited to check all that apply:
17 per cent said it would have no impact
0 per cent said it would help their business
18 per cent said it would be a challenge but they would manage
60 per cent said they would raise prices
45 per cent said they would cut employee hours
29 per cent said they would lay off staff
8 per cent said they would close
Asked how the plan to require staff to be paid for three hours for shifts cancelled within 48 hours would affect their business, 42 per cent said they could not run their business that way.
Asked if they would choose to start a business in Ontario now, 49 per cent said no, 29 per cent said they were not sure and only 21 per cent said yes.
Quotes from survey responses
“It will force us to raise prices, cut hours, lose clients – it’s a domino effect.” – Salon owner
“The increase in minimum wage will severely impact us, we will raise prices and I’m not sure people will accept these changes and therefore … we may have to close.” – Bakery owner
“We will potentially have to close for the winter months and lay off all staff.” – Resort owner
“I am not against a minimum wage increase… I am however objecting to the accelerated process of this increase that puts a tremendous burden on the small business community only for the purpose of re-election.” – Restaurant owner
“I am paying $15/hour now in order to attract better candidates for positions. If that becomes the bottom of the pay scale, I can’t compete.” – Store owner
“Since 90 per cent of my year round clients are on a fixed income, I cannot raise prices to compensate for this. I may have to close the doors. The government is not giving them a raise.” – Café owner
Quotes about three hours pay for shifts cancelled within 48 hours:
“Our business is weather dependent; forecasts are not accurate enough 48 hours out to schedule staff.” – Marina owner
“I am a weather dependent trade. I cannot make a weather call 48 hours in advance.” – Roofing company owner
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Tom’s comment is right on. I’m in the resort sector and for the period of May to late Oct I have zero time to go off to places like Parry Sound or Bracebridge to attend meetings.
We too have almost no staff as we have managed to be as efficient as possible with our time and not only that, we work usually 14 to 17 hour days. Yes the hours are strange and we can take a few off in the middle of the day but we have to be available to our guests, to service their needs as that is what we are, a service industry. Thus, as Tom says, my brain is always in gear to the tunes of what my guests might be needing and not much is left for thinking about other things.
The official plan review (for example) happening in this period means that I don’t have time to meaningfully review it or even take part except for a cursory email or two.
Technology has helped a bit, for example we no longer staff an “office” at all and guests can call us on their cell phone to get our help from wherever we might be, doing whatever we need to do. The good old office has turned out to be an expendable part of operations. We also forego or have greatly reduced many items we used to offer, things like sailing and canoe training sessions, conducted hikes, water skiing instruction and things of this nature. Why, well not because we did not want to do these things and not because the demand is not there. No it is simply that with weather dependency and guest variability it is impossible to hire staff with sufficient knowledge to do these things and actually have any possibility of even covering costs so sadly, things we used to do int say the 1970’s are no more. These services have had to go because there is a limit to what we can do and wages have effectively curtailed this type of activity.
We are often not able to service any “drop in trade” as our office is open for business “by appointment or chance”. Most of our rentals come in advance bookings so this works but unlike a motel in town you will most likely not find a person on our front desk if you just blunder in by chance and this too is a cost of higher wages.
These are some of the hidden costs of the high costs of doing business in Ontario. We have to pay the Hydro, Insurance and Taxes so what we cut is work hours for any staff we do have and the owners work longer. Of course we all know, (It has been drummed into us for years by all levels of government) that “owners work for free” so no matter how much we work it does not change the financial picture.
Oh yes.. government has thought of this angle too though and they get this theoretical money back as a capital gain if an owner ever sells their business. The climate for small business in Ontario is currently not good.
We need some changes.
I find it interesting how government consults with the impacted sectors ALWAYS !ALWAYS ! when they are so busy in their sectors that they are unable to commit effective time towards responding and taking part in talks. In the Agricultural sector these times always fall in July/August. During these two months there is no doubt that the majority of us are working 18-20 hr days for weeks on end operating and maintaining heavy farm equipment. This leaves ZERO time or mental energy for “consultation”, we are already trying to harness the natural earth…… We have been farming our land here in Huntsville for 148 years and are highly efficient because we have to be. This means that there are no employees because we can’t afford to pay someone else to do work we can do, if we just squeak another 6 hrs into our day before we have to go to our “off farm”, full time jobs. I know all I think of during the summer is simple survival, literally! The level of exhaustion is incomprehensible to the non-Ag sector. Perhaps specialty Medical Surgeons and Deployed/active Military Personel could identify.
What are you having for supper tonight? I’m having mine tomorrow.