Minimum wage

Wednesday November 3, 2021

November 3, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday November 3, 2021

Doug Ford’s minimum wage move signals it’s election time in Ontario

Here’s what’s happened to the minimum wage in Ontario since Premier Doug Ford took office: 

•2018: 0 per cent increase.

•2019: 0 per cent increase.

•2020: 1.8 per cent increase (up 25 cents to $14.25/hr). 

•2021: 0.7 per cent increase (up 10 cents, to $14.35/hr).

Series: Young Doug Ford

That record is just one reason why many in this province were both surprised by and skeptical of Ford’s campaign-style announcement Tuesday that his government will boost the minimum wage to $15 per hour effective Jan. 1, 2022. 

The date is precisely three years after Ontario’s minimum wage was due to hit $15/hour under legislation brought in by Kathleen Wynne’s Liberal government. Back in 2018, Ford slammed that bill as “job killing,” his government repealed it and also froze the minimum wage for two years. 

Given all that, it’s only natural that Ford was grilled by reporters at Tuesday’s news conference on why a minimum wage hike that he considered such a job killer then is great now. 

January 12, 2019

“Things were a lot different back in 2018,” Ford told the news conference. “We didn’t have the pandemic, a worldwide pandemic.” 

How different were things in 2018? Not only did Ford’s government freeze the minimum wage, it also took away a guarantee of two paid sick days annually for all employees, scrapped an equal-pay-for-equal-work law and eliminated rules making it easier for workers in some sectors to join unions.

None of this was reflected in Ford’s tone or words at Tuesday’s news conference. “This government will always remain on the side of the workers,” he said.

October 15, 2021

I wrote two weeks ago about how Ford and the Progressive Conservatives are attempting a political makeover ahead of the election next June 2 by portraying themselves as pro-worker. Tuesday’s announcement further proves that this is a key piece of the PCs’ strategy for winning re-election.

The Canadian Federation of Independent Business (CFIB) didn’t see the minimum wage hike coming, calling it ‘unexpected’ in a news release. 

“The Ontario government’s surprise decision to increase the minimum wage without consultation comes at the worst possible time for small businesses,” said a statement from CFIB president Dan Kelly. (CBC) 

 

Wednesday October 19, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday October 19, 2021

With election looming, Doug Ford’s PCs pitch themselves as a party on the side of workers

With Ontario’s provincial election looming next spring, Premier Doug Ford’s Progressive Conservatives are presenting themselves as a party that is on the side of workers. 

September 5, 2020

It’s a political makeover that will likely to be a tough sell for Ford and his PCs. 

Ford came to power in 2018 on a crusade to make Ontario “open for business.” One of his government’s first bills froze the minimum wage, scrapped a requirement that employers give all staff at least two paid sick days and ended measures that made it easier for some workers to join a union. 

But now Ford is clearly making a fresh pitch to win favour with workers. 

“We’ve always been for the front-line hard-working union people,” Ford told a news conference in Windsor on Monday. “I will break a brick wall down to support them.”

April 23, 2021

Ford’s Minister of Labour, Training and Skills Development, Monte McNaughton, also aimed for a pro-worker tone in a recent speech to the Provincial Building and Construction Trades Council, an umbrella group of unions representing plumbers, electricians, bricklayers and other skilled tradespeople.  

“We’re on your side,” McNaughton told the gathering of about 300 union officials in Toronto last Thursday. “There’s no bigger champion out there for tradespeople than Premier Ford.” 

McNaughton went on to voice concern for “workers in Ontario being taken advantage of by some bad actors and bad corporations.” He talked of the plight of workers “making well below the minimum wage without pay stubs or transparency on how their work is assigned.”

August 20, 2012

Conservative governments “got it wrong” for decades with their approach to the labour movement, he said in the speech. 

“We’re taking a different path,” McNaughton said. “Not every conservative agrees with me, but we’re not going to slow down.” 

The idea of Ford’s party standing up for workers against big business is being met with skepticism by the PCs’ political opponents.

“They can kiss up to the unions if they want, but it’s their actions that make a difference,” NDP Leader Andrea Horwath told reporters on Monday at Queen’s Park. 

February 4, 2020

“Actions speak louder than words, and we’ve seen this government have a very anti-worker agenda all the way along.” 

Liberal Leader Steven Del Duca similarly questioned whether the Conservatives will back up what they say with meaningful action. 

Patty Coates, president of the Ontario Federation of Labour, which represents more than one million unionized workers, dismisses what the PCs are saying as empty platitudes. 

“It’s election time,” said Coates in an interview, adding that Ford is “rebranding himself as a friend of labour, and he believes that people will forget.” (CBC)  

 

Friday October 15, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday October 15, 2021

Ford should rethink outdated minimum wage stand

Doug Ford’s minimum-wage policy is the product of minimal thought.

April 29, 2021

Since becoming Ontario’s premier more than three years ago, Ford has rejected any meaningful increase in the baseline wages that employers must by law pay to their workers. After freezing minimum wages during his first 27 months in office, the premier consented to a 25-cent-an-hour increase one year ago then followed up with a paltry 10-cent-an-hour hike on Oct. 1. That brought the current hourly minimum wage to $14.35.

For many of the province’s 500,000 minimum-wage earners, this month’s change felt like a slap in the face instead of a helpful hand up. Those extra 80 cents they have in their pockets after an eight-hour-day’s efforts wouldn’t even cover the cost of their bus ticket to work. Yet Ford stubbornly insists any significant minimum wage increases would shutter businesses and drive higher unemployment.

The problem with this defence is that real-life evidence and real-live economists prove it’s wrong. And if Ford needs an expert second opinion on the matter from a fellow Ontarian, he should consult David Card, the Berkeley university professor who just won the Nobel Prize in economics. The native of Guelph and graduate of Queen’s University, Card was awarded the prestigious honour this week largely for his groundbreaking work into the economic and human impacts that followed minimum-wage increases.

February 1, 2014

Before his research, many economists would have agreed with Ford that boosting wages for some people can make life worse for more by forcing business closures and job losses. If the cost of labour grows too high, the demand for it would drop as many businesses scramble to adapt and some even go bust. Or so went the reasoning — supported for a time by many studies.

But in 1993, Card and the late Alan Krueger challenged conventional theory by looking at what happened to jobs at several New Jersey fast-food restaurants after the state raised its hourly minimum wage from $4.25 (U.S.) to $5.05 (U.S.). After comparing the situation in New Jersey to what was going on at similar fast-food restaurants in neighbouring east Pennsylvania, they concluded the rise in the minimum wage had no effect on the number of people being employed.

In response to skeptical colleagues, Card launched another study in 2000 using new information. His findings were the same. And over time, he won over most of the doubters to his viewpoint. There are still vigorous debates over how governments should manage minimum-wage legislation. But the prevailing opinion of economists is that moderate and gradually introduced wage increments benefit low-wage employees, do not cost jobs and help reduce poverty.

October 18, 2006

In fact, Premier Ford should already know this. After the previous Liberal government raised the hourly minimum wage from $11.60 to $14 in 2018, he railed against what he called “a failed Liberal policy that is driving jobs and investment out of Ontario. It’s equal to the carbon tax when it comes to job killing.” The Ontario Chamber of Commerce was of the same mind and issued dire warnings of economic devastation to come.

Six months after the Liberal minimum-wage hike, however, Ontario’s unemployment rate had dropped to 5.4 per cent, the lowest it had been since 2000. Meanwhile, business profits in the province had risen while its annual inflation rate was running at a modest 2.2 per cent.

Let’s hope the worldwide publicity surrounding Prof. Card’s Nobel Prize will push Ford and the Progressive Conservatives to rethink a minimum wage policy that has so widely been discredited. In its place should be a minimum wage that rises annually and matches wage growth across the provincial workforce. It’s time for a minimum wage based on maximum wisdom. (Hamilton Spectator Editorial) 

 

Saturday November 17, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday November 17, 2018

Ford government’s 1st fiscal update shows Ontario cut deficit to $14.5B

Ontario’s Progressive Conservative government says it has cut the province’s deficit by $500 million, bringing the figure down to $14.5 billion in its first few months in office.

June 25, 2018

The change is announced in the government’s Fall Economic Statement for 2018-2019, its first major fiscal update since winning the spring election.

“The fiscal hole is deep,” Finance Minister Vic Fedeli said in presenting the document to the legislature on Thursday afternoon. “The road ahead is not an easy one and will require difficult decisions. Everyone across the province will be required to make sacrifices, without exception.”

The government said it has made progress on cutting the deficit by finding $3.2 billion in efficiencies in operations, including a hiring freeze across the public service.

The belt-tightening measures laid out also include rolling the positions of three independent officers — the environmental commissioner, the child and youth advocate and the French language services commissioner — into the offices of the auditor general or the provincial ombudsman.

Government staff could not say what will happen to those working in the eliminated offices, but Premier Doug Ford has consistently promised that no jobs would be lost as a result of his cost-cutting.

Plans for a French-language university have also been cancelled, though the government could not immediately say how much money the move would save.

Though it is spending less, the government said it is also taking in $2.7 billion less in revenue in the fiscal year — including $1.5 billion attributed to the cancellation of cap and trade.

More than $300,000 in lost revenue is attributed to cancelling planned tax increases, including one that would have raised taxes for small businesses, the document says.

The Tories had said the previous Liberal government left a $15 billion deficit, a figure disputed by critics, who said it includes spending promised by the Liberals but cancelled by the current regime.

While the document mentions returning the province’s budget to balance, it does not spell out how long it will take to achieve that goal. (Source: CTV News) 

 
 

Friday January 19, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday January 19, 2018

Kathleen Wynne’s Liberals may surprise in upcoming provincial vote

Kathleen Wynne will shuffle her cabinet on Wednesday, six months ahead of the next provincial election. It didn’t take long for the jokes to start after the news broke on Tuesday night. Rats from sinking ship was a common theme.

November 28, 2017

One wise guy on Twitter simply responded to the news of the shuffle by tweeting out a video clip from James Cameron’s Titanic. What particular scene? The band stoically playing on as the ship slides beneath the waves.

She’s smart and shrewd and connects well with people, particularly in small settings.

Ontario NDP leader Andrea Horwath is quite good too, and the Conservative leader, Patrick Brown, though still to some measure unknown, certainly seems to hold his own. But Wynne, at the very least, will not be at a material disadvantage here. She will surprise people.

And then there’s the goodies. Lower hydro rates. A higher minimum wage, with a politically helpful spat with some rich Tim Hortons heirs thrown in, might impress  some middle- and lower-income voters the Liberals urgently need aboard. And the so-called OHIP+ plan, essentially universal pharmacare for young Ontarians, might not be the whole smash pharmacare advocates would want, but it’s a big step in that direction. And Lord only knows what else they’ll roll out in the months to come.

October 24, 2017

None of this will erase their record over the last 15 years. There is a lot of anger out there against this government, much of it deserved, but the fact remains that the party and the Premier will be in a decent place to contest the next election.

Whatever problems the Liberals have going into this campaign, someone still needs to beat them at the ballot box. The parties can’t all lose, someone needs to win. The Liberals are getting to set to do that, and the NDP and Conservatives are going to need to fight back. (Source: Global News) 

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