The Ontario Chamber of Commerce (OCC) is calling for a new process to determine the appropriate level of minimum wage.
Until February 2004, Ontario’s minimum wage remained unchanged for almost nine years. After consultation with the OCC, the government phased-in increases over four years. In 2007, three more annual increases were set to end in a $10.50 per hour wage in 2010.
Recently the provincial government announced that the minimum wage would increase to $10.25 per hour as of March 31.
The OCC successfully argued a staged increase would help achieve a balance between the needs of Ontario’s low-income workers and the needs of Ontario’s businesses to be competitive.
Now, the business environment is vastly different. OCC members are faced with a rapid turn in economic fortunes that were unforeseen at the time of the minimum wage consultations. The exact result of the next scheduled minimum wage increase is not now known. It is the hope of the OCC that businesses are able to absorb the additional labour costs.
What is needed is a process of reviewing and setting minimum wage that is transparent, inclusive and based on a wide variety of economic factors to ensure minimum wage increases help workers benefit from economic growth on a sustainable basis. The Ontario chamber network supports an independent, third party board or commission, comprising representatives from various sectors such as business, labour and social groups to recommend an appropriate minimum wage level.
Chamber officials believe an independent process will minimize the risk of rising business costs in periods of economic uncertainty, thereby protecting jobs and the competitiveness of businesses – all the while ensuring that all benefit in times of economic prosperity.
