Minimum wage hike, labour law changes 'nutso,' 'heartbreaking': Chamber

YorkRegion.com
Sept. 9, 2017
Lisa Queen

The province’s proposed labour law changes, including boosting the minimum wage to $15 an hour in just 16 months, are “nutso” and “heartbreaking” to small businesses, a vice-president with the Ontario Chamber of Commerce told York Region business owners.

Karl Baldauf, vice-president of government relations and policy, urged small business owners to fight Bill 148, the Fair Workplaces, Better Jobs Act, during the upcoming provincial election campaign.

“There is a potential for a future government, even a reduced minority Liberal government, to acknowledge that there are unintended consequences to Bill 148 and while the intent may be good, the pace of change, the scale of change, will have unintended consequences that, in fact, adversely impact the most vulnerable in our society,” he told businesses from across York Region at a Newmarket Chamber of Commerce town hall meeting Sept. 7, with a similar meeting held in Markham the same day.

The “enormous” changes introduced by legislation would hurt businesses, non-profits and organizations such as post-secondary schools and sting consumers with higher prices, Baldauf said.

The provincial government is working to address concerns and bring forward initiatives to help small businesses, Blair Ostrom, communications advisor for Small Business Minister Jeff Leal, said in an email.

“We will continue to work with the business community to foster a competitive economic environment where they can thrive,” he said in an email.

While the provincial government has failed to make a business case for a $15-an hour minimum wage, Baldauf argued an interim economic analysis commissioned by the Keep Ontario Working Coalition indicates the legislation would result in $23-billion a hit to the provincial economy, with the minimum wage hike responsible for half.

Social justice groups have criticized the findings of the coalition’s analysis.

Chris Emanuel, director of government affairs with Newmarket call centre company Bill Gosling Outsourcing, said the legislation could hurt his company in a fierce global economy.

“The reality is it’s going to be tough. We want to expand in Ontario and we would have to look at that if it happens,” he said.

“We have grown in the last year but it certainly has us viewing where we have future growth. We have offices in the U.S., the U.K. and in the Philippines, right now and our clients are saying we’re not going to absorb those costs, maybe you need to move those jobs elsewhere and we’re trying to keep those jobs in Ontario.”

He wants the government to introduce tax credits or grants to offset the burden of the legislation on businesses.

The pace of the implementing the legislation, which, in addition to the minimum wage boost, would include increasing employee emergency leave, paid sick days and vacation time, is “unconscionable,” Newmarket chamber of commerce president, Debra Scott, said.

A chamber survey indicated 74 per cent of members are concerned about the legislation hurting their businesses and 87 per cent worry about the blow to Ontario’s economy.

“They represent not just the concerns of Newmarket businesses but businesses across the province,” Scott said.