Flanked by union leaders, Doug Ford raises Ontario’s minimum wage to $ 15 an hour

Too little, too late, or too much, too soon, or the right amount at the right time.

Prime Minister Doug Ford’s surprise pre-election increase in the minimum wage to $ 15 an hour, three years after he eliminated a scheduled raise and during a pandemic that has hit businesses, is shaking the political and employment landscape.

Ford made official Tuesday what Star first revealed the night before: Effective January 1, the minimum wage of $ 14.35 an hour will increase to $ 15.

“Workers deserve to have more money in their pockets because they earned it,” the prime minister announced at a Unifor store in Milton, praising union leaders for pressuring him to raise wages.

In fact, he was flanked by union leaders from the public and private sectors, including Unifor President Jerry Dias and Ontario Public Service Employees Union President Warren (Smokey) Thomas.

“For many Ontarions, wages have not kept up with the cost of living,” Ford said, adding that it means wage increases for more than 760,000 workers.

But the prime minister defended his earlier pro-business stance of opposing a $ 15-an-hour minimum wage, saying it’s “apples and oranges” due to the COVID-19 pandemic.

“Everyone has faced a challenge in the last 20 months,” he said, insisting that “things were very different in 2018” when he scrapped his liberal predecessor Kathleen Wynne’s plan of a $ 15 minimum wage from the 1 January 2019.

Dias, whose union represents Toronto Star employees, said that while he has had “frustration” with progressive conservatives, “today is an incredibly important day.”

“This will also increase the wages of our members,” said the Unifor president, noting that it will benefit unionized workers, who have “minimum wage plus clauses” in their contracts.

“Do I think $ 15 is wonderful? No. But do I think it’s a good start? Yes, ”said Dias, adding that a living wage in Toronto is $ 22 an hour, while in a city like London it costs around $ 16.

Thomas, noting that his union has also struggled with Ford for the past three years, praised the prime minister for listening to workers’ concerns.

“I said some not nice things about the prime minister on many occasions, but I got to know the prime minister at the beginning of the pandemic,” he said, emphasizing that he has worked well with Ford.

“Do the workers have everything we want? No. But for the first time in dealing with three governments (Liberal and Conservative), we actually have a government that is really listening and doing some positive things. “

But NDP leader Andrea Horwath told the legislature on Tuesday that “the prime minister almost admitted he was wrong” when he canceled the planned 2019 increase from $ 14 to $ 15 after being elected.

“By canceling the $ 15 minimum wage planned three years ago, Doug Ford has taken more than $ 5,300 out of Ontario workers’ pockets to date,” Horwath said.

“The cost of everything has skyrocketed since then, like housing, car insurance, food and gas, and $ 15 an hour is no longer enough,” he said, criticizing Ford’s “low-wage policies for employees. Ontario workers “.

“Workers need a minimum of $ 17 an hour to cover the cost of living.”

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, responded that the pay increase comes at a time when small businesses are still grappling with the impact of the COVID-19 pandemic.

“The government raised the minimum wage four weeks ago (from $ 14.25 to $ 14.35). This was added to a 25 cent increase in October 2020, based on inflation, ”Kelly said on Twitter.

“The industries most affected by the minimum wage increases are retail, hospitality, arts and recreation, the same sectors that suffered the most impact and were blocked the longest during the pandemic,” he added.

“Only 37 percent of small businesses in Ontario have returned to normal sales levels. Many are losing money every day that they are open. They wait for brighter days. “

As Star first revealed, the government is also increasing the current minimum wage of $ 12.55 for tipped waiters to $ 15.

Starting October 1, 2022, the minimum hourly wage will increase at the annual inflation rate.

Finance Minister Peter Bethlenfalvy said the increase is a cornerstone of Thursday’s mini-budget, while Labor Minister Mount McNaughton said it is part of the Conservatives’ push to improve the situation for workers.

“Based on these actions, our government today ensures that the workers who need our help most receive their fair share of the economic pie,” McNaughton said.

Had the Wynne plan been implemented, the Liberals would have raised the minimum wage to about $ 15.75 an hour by now.

Ford’s move comes with a provincial election scheduled for June 2.

Robert Benzie is the bureau chief for Star’s Queen’s Park and a reporter covering Ontario politics. Follow him on Twitter: @robertbenzie