It’s a start but still some questions remain.
That’s the reaction of local officials when it comes to the province’s plan to raise the minimum wage to $15/hour as of January 1st, 2022.
The wage right now is at $14.35 an hour, which would represent a nearly 20 per cent increase in the rate in less than two months.
“Anytime you add an increase to wages, it adds to a businesses overhead costs,” said Thunder Bay Chamber of Commerce Charla Robinson. “It means that owners will have to make other choices, like increasing prices, changing operating hours, or reducing the number of staff. They’re going to have to do things to reduce their overhead costs in order to continue operating because the profit margins are so razor thin, particularly for restaurants.”
Robinson noted that the province can offer a few things to help with the increase in the minimum wage.
“They could reduce provincial income tax rates for lower income workers, or they could even offer restaurants and bars wholesale pricing when it comes to their alcohol beverage purchases,” mentioned Robinson.
Robinson notes that typically the province, through their minimum wage taskforce, reviews the rate and notifies businesses in April of what the increase will look like in the following October.
The Ontario Living Wage Network reports that Thunder Bay’s rate is $16.30 an hour. Bonnie Krysowaty with the Lakehead Social Planning Council says despite our city having one of the lowest living wages, it feels like the north is being ignored.
“Financial initiatives and resources will be placed in those cities that have more poverty,” Krysowaty mentioned. “So as poverty increases within the province, we will see more resources directed towards Southern Ontario where poverty per capita is greater.”
Thunder Bay along with Hamilton were chosen by the previous provincial government for a three-year basic income pilot project, which was cut short after one year with the Ontario PC’s wanting to focus on introducing their own plan.
