Doug Ford’s latest election tactic appears to have failed.
Businesses and workers are angered by his surprise plan to raise the minimum wage by two months: Businesses want more time to prepare, while labor advocates say the pay increase is hypocritical and years behind schedule.
The Star reported Monday that Ontario Prime Minister Doug Ford plans to raise the province’s minimum wage from $ 14.35 to $ 15 an hour starting Jan. 1, eliminate the liquor server wage, and tie in an annual increase. from minimum wage to inflation every October. Other workers who are paid less than the minimum wage, such as students under the age of 18, will also receive pay increases on January 1.
Ford canceled the $ 15 salary increase planned by the previous Liberal government when his Conservative party won the election.
For companies, especially restaurants, the problem is not the salary increase, but the timing.
Larry Isaacs, president of Firkin Group of Pubs, is disappointed that the restaurant industry was not consulted. I would have recommended implementing the pay increase in the spring rather than at the end of the slower season.
“(Ford) could have done it in May when the yards were reopening,” he said.
Restaurants Canada Vice President James Rilett is frustrated by the short prep time, especially since liquor waiters’ salaries are also being cut.
“We are getting tired of being imposed on us by these important political decisions without discussion and with very little implementation time,” he said.
Ontario is one of only two provinces that still have a minimum wage for liquor servers. Quebec has a minimum wage of $ 10.80 for workers who receive tips. British Columbia raised its minimum wage and minimum server wage to $ 15.20 in June.
Payment structures in restaurants are already controversial, with servers receiving the majority of tips. Even when shared, they often earn more than back-of-house employees, Rilett said, which some companies have tried to rectify by adjusting their tip structures.
For the new pay increase to be equitable, restaurant owners may need to further adjust the way tips are distributed, a complicated and often controversial change, he said.
“It’s complex and it takes time and it won’t be done in two months,” Rilett said.
As for consumers, they can expect the new wages to be reflected in menu prices, which have already risen due to the pandemic and higher food costs, Rilett said.
Canadian Federation of Independent Business (CFIB) regional director Ryan Mallough said he, too, was completely shocked by the news.
The CFIB is asking the government to reconsider the implementation date of the salary increase and consult with companies, Mallough said.
“I heard the prime minister when he says the cost of living has gone up,” Mallough said. “That is not being felt only among people, it is being felt among companies.”
John Sinopoli, co-founder of Ascari Hospitality Group and SaveHospitalityCA, wants the Ford government to help restaurants pay for the salary increase.
Your suggestion? Offer restaurants and bars a wholesale price for alcohol, as in other Canadian jurisdictions.
“Simply asking us to spend more money on labor is probably fair to a large portion of the industry’s employees, but unfair to the traders who get hold of the bag,” Sinopoli said.
“The question is, what is the provincial government going to do to help restaurants and support us in other ways?”
Rilett said the government’s decision seems like an electoral ploy to him.
“This is a government that only cares about being reelected,” he said.
Workers and labor advocates are also frustrated with Ford’s announcement. If you’re trying to get their votes, they say the $ 15 salary is too small, too late.
Patty Coates, president of the Ontario Federation of Labor, said the time for a $ 15 minimum wage is over.
“Three years ago … we fought and earned a minimum wage of $ 15,” Coates said. “Immediately after taking office, Doug Ford eliminated the minimum wage increase. And we knew it was going to hurt the workers … and we were right ”.
According to the Ontario Living Wage Network, a living wage in Toronto is $ 22.08 an hour. Her lowest estimated living wage is for Sault Ste. Marie, and that’s $ 16.20 an hour.
Workers are looking for more than just a pay raise, said Deena Ladd, executive director of the Workers’ Action Center.
The prime minister will have to introduce much more pervasive worker protections, such as paid sick leave, to show workers that he is listening, Ladd said.
“The workers are not stupid. They can see what’s going on. “
Julie Li, a minimum wage worker, had bitter words for Ford on Tuesday.
She called the minimum wage increase “sweet” for potential voters, and said workers were “waiting a long time” for the $ 15 raise, which is not enough to survive. He wants the government to introduce workplace protections for workers beyond the minimum wage, such as paid sick leave.
However, some are hopeful that with this change of mind, Ford could also change his mind on other issues, such as paid sick leave.
Many small business owners favor a higher salary, said Gilleen Pearce, a Hamilton business owner and spokesperson for the Better Way Alliance, noting that it has actually been shown to be better for businesses.
Higher salaries lead to better service and lower turnover rates, Pearce said. A higher minimum helps “level the playing field” between large and small businesses, he added.
The increase in the minimum wage gives Pearce hope that the government can also make paid sick days permanent.
“It’s a no-brainer,” he said.
With files from Robert Benzie
Reference-www.thestar.com