{"id":43479,"date":"2018-01-17T16:03:41","date_gmt":"2018-01-17T21:03:41","guid":{"rendered":"https:\/\/huntsville.dopperonline.ca\/?p=43479"},"modified":"2018-01-18T07:13:53","modified_gmt":"2018-01-18T12:13:53","slug":"short-term-pain-for-long-term-gain-raising-ontarios-minimum-wage","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/short-term-pain-for-long-term-gain-raising-ontarios-minimum-wage\/","title":{"rendered":"Short-term pain for long-term gain? Raising Ontario’s minimum wage"},"content":{"rendered":"

With files from Dawn Huddlestone<\/em><\/p>\n

While some are applauding increases to minimum wage in Ontario, others are reeling over the changes and trying to figure out how to soften the blow.<\/p>\n

According to Debbie Knoblesdorf, owner of West Side Fish and Chips, the increases will cost the business she owns and runs with her mother an additional $35,000 this year and roughly $50,000 next year when the minimum wage goes from $14 to $15 per hour.<\/p>\n

What people don\u2019t realize is that this is a win-win for the Wynne government. It had absolutely nothing to do with her caring about the people. It came down to tax dollars in her pocket. As soon as she raises minimum wage everything goes up CPP, EI, income tax \u2013 it all goes up, WSIB goes up. Everybody is going to raise their prices and what\u2019s that going to mean? More tax revenue! Debbie Knobelsdorf, owner of West Side Fish and Chips Restaurant<\/cite><\/p><\/blockquote>\n

<\/broadstreet-zone><\/strong><\/div>\n

She said the legislated increases have been so drastic in such a short period of time that it leaves very little room for employers to compensate based on merit. \u201cI\u2019ve just given huge raises to people who don\u2019t even deserve the ones they got before, that the government gave them, and students should be seven or eight bucks an hour coming out of high school not thirteen something. There\u2019s no room for incentive raises. You know, \u2018you\u2019re doing a good job, here\u2019s 50 cents (more per hour).\u2019 I can\u2019t do that anymore,\u201d she said.<\/p>\n

In order to mitigate the impact of an almost 30 per cent increase to wages by the time 2019 rolls around, Knobelsdorf said she\u2019ll be looking at reducing hours of operation and staff complement, as well as reducing her own wages and taking on extra shifts. Before, she tried to keep staff on during slower times, especially during winter months, but she\u2019ll have to rethink that approach. She said she\u2019s been trying not to impact her staff \u2014 some of them have been with the business for 30 years \u2014 but she sees no alternative.<\/p>\n

“I lowered my wage, which is what the government wants owners to do, but we\u2019re not multi-billionaires. My mom, yes, she goes to Florida but that\u2019s because she\u2019s worked her whole freaking life. I don\u2019t go to Florida every year and I\u2019ve been here 38 years, so we\u2019re not rich off this business, it\u2019s just a business we love,\u201d said Knoblesdorf whose restaurant employs about 20 people.<\/p>\n

Knoblesdorf said they even hired a consultant in Toronto to help them navigate through the new labour laws and figure out how to mitigate the impacts those changes will have on the business.<\/p>\n

\u201cPeople strike for a three to five per cent raise, usually given over a period of time, and the government thinks it’s okay to simply force us to give a 20 per cent raise, plus all of the other perks they’ve added in.”<\/p>\n

Others see the changes differently<\/strong><\/p>\n

Jenny Spring and Oliver Wolfe are the new owners of Family Place Restaurant. They also worked hard running The Spring Farm on Aspdin Road, paying themselves a salary of $14 per hour but working so many hours that it worked out to much less than that. \u201cIt\u2019s really hard to survive in Huntsville at ($14 an hour),\u201d said Spring. “We\u2019ve always paid our employees well. Even on the farm we paid them more than minimum wage because we just believe that if you\u2019re going to have good workers, who are working hard for you, then you need to pay them well and it comes back in the business later if you have good employees who stick around for a long time and part of that is paying them well and treating them well.”<\/p>\n

Spring’s first job out of university was working for the Canadian Labour Congress. \u201cThat\u2019s the government body that lobbies for labour rights for employees. That\u2019s my background and now I\u2019m an employer, and so I see both sides,” said Spring.<\/p>\n

I see how you have to treat your employees right and pay them well. It\u2019s challenging, the big hike \u2013 it would have been nice if it happened over a longer period of time, slowly. I think that\u2019s what\u2019s going to really hurt small businesses. But overall we are happy to pay our employees well, that\u2019s just something that we want to do. I think people should be paid for the hard work they put in… We haven\u2019t changed any prices, we\u2019ve just raised wages Jenny Spring, owner of Family Place Restaurant<\/cite><\/p><\/blockquote>\n

Councillor Bob Stone chairs the Town\u2019s Economic Development Committee, he sits on the board of the Downtown BIA and is the former owner of Christmas Tyme on Huntsville’s Main Street. He said while he’s concerned about the hardship that some small businesses will face, and consequences such as price increases and cut backs on minimum wage hours, in the long run he thinks raising wages will benefit society at large. \u201cToday businesses are hurting… the economy is not that great right now anyway, and now to throw this on their backs – they are just pulling their hair out… Ten years from now, looking back on it, I think the ones that will survive will be better for it and so will the people,” said Stone.<\/p>\n

\u201cIf previous governments were better, we would have been at this point a long time ago. This huge jump is painful, absolutely. But now, this is what I like about the legislation is that once this is done we don\u2019t have to visit this anymore. No more devastating jumps in minimum wage for small businesses, it\u2019s going to be the cost of living year-upon-year and that\u2019s going to move with the economy, so we never have to have this pain again,\u201d opined Stone.<\/p>\n

In terms of some of the other changes in the legislation, like two paid sick days, Stone thinks it will help level the labour field.<\/p>\n

We have great disparity between the haves and have-nots. You\u2019ve got the union employees and the publicly funded employees and you\u2019ve got everybody else. The unions and the government employees have been getting enormous (benefits)…12 sick days and they use them as holidays and make sure they use them all up, every year, and the little guy who is working at Tim Hortons gets nothing. If he doesn\u2019t show up for work, he gets nothing even if he has to go to the doctor or have some surgery. So, does this bring it more in line? Yes. Councillor and former business owner, Bob Stone<\/cite><\/p><\/blockquote>\n

\u201cSociety is heading towards a basic income for all, I think. It\u2019s even been suggested that maybe that would\u2019ve been the proper step for the province to take at this time but it may be a little premature. Let some others experiment with that to see if it flies,\u201d he said. \u201cI hope small businesses survive and I hope they\u2019re being good to their people.\u201d<\/p>\n

Kelly Haywood, Executive Director for the Huntsville\/Lake of Bays Chamber of Commerce, said many local business owners are stressed over the changes. Although they knew the changes were coming, many now find themselves trying to figure out how to make the changes work within their business.<\/p>\n

\u201cIt had to happen, but I think the roll out was very poor and much too quick,\u201d said Haywood. \u201cThere are a lot of changes in that bill.\u201d Haywood has been sharing this booklet<\/a> (pdf)<\/span> from the Ontario Chamber of Commerce with her organization’s members to help them navigate through the new legislation. You can also find a link to the changes on the government of Ontario website here<\/a><\/span>.<\/p>\n

By the numbers, this is how minimum wages have changed in Ontario since 2016:<\/p>\n\n\n\n\n\n\n\n\n\n\n
Category<\/td>\n2016<\/td>\nOct.1 2017<\/td>\nJan.1, 2018<\/td>\nJan.1, 2019<\/td>\n<\/tr>\n
General minimum wage<\/td>\n$11.40\/h<\/td>\n$11.60\/h<\/td>\n$14.00\/h<\/td>\n$15.00\/h<\/td>\n<\/tr>\n
Students under 18 who work not more than 28 hours per week when school is in session, or work during a school break or summer holidays<\/td>\n$10.70\/h<\/td>\n$10.90\/h<\/td>\n$13.15\/h<\/td>\n$14.10\/h<\/td>\n<\/tr>\n
Liquor servers<\/td>\n$9.90\/h<\/td>\n$10.10\/h<\/td>\n$12.20\/h<\/td>\n$13.05\/h<\/td>\n<\/tr>\n
Hunting and Fishing guides working five or more hours a day<\/td>\n$113.95<\/td>\n$116.00<\/td>\n$140.00<\/td>\n$150.00<\/td>\n<\/tr>\n
Hunting and Fishing guides working less than five consecutive hours a day<\/td>\n$56.95<\/td>\n$58.00<\/td>\n$70.00<\/td>\n$75.00<\/td>\n<\/tr>\n
Homeworkers (employees doing paid work in their own home for an employer)<\/td>\n$12.55\/h<\/td>\n$12.80\/h<\/td>\n$15.40\/h<\/td>\n$16.50\/h<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Related story:<\/p>\n

Proposed wage increase could have unintended consequences, advises District community services staff<\/strong><\/a><\/p>\n

Don\u2019t miss out on Doppler! Sign up for our free newsletter here<\/u>.<\/a><\/strong><\/p>\n

<\/broadstreet-zone>\n","protected":false},"excerpt":{"rendered":"

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