Richmond Hill businesses feeling effects of minimum wage hike
Local coffee shop is scaling back on hours, increasing prices to cover cost

Yorkregion.com
Jan. 18m 2018
Teresa Latchford

Only weeks after the increased minimum wage, Richmond Hill’s small businesses are beginning to see the impact.

Covernotes owner Liz Hamilton feels it is too early to really assess the long-term effects the increased wage will have on her independent coffee shop that employs seven. However, since the pay bump that came into effect Jan. 1, she finds herself spending more of her own time in the shop while scaling back hours for staff.

“Our employees, mostly students, have had to go out and find more part-time work to make up for the loss of hours,” she said. “While I respect and understand the increase in wage, businesses have to find a way to stay afloat or nobody will have a job.”

The prices of coffee and other goods offered on the menu at the Yonge Street coffee house will also have to be increased to not only help with the cost of wages but also the cost of the products and items Covernotes orders will increase as well as their suppliers attempt to make up for the wage increase of their employees.

Government affairs committee chair Jason Cherniak said the Richmond Hill Board of Trade intends to survey its member business in the near future. The questions will aim to access what impact, cost and business practice changes have resulted from the changes made to employment standards and labour laws, including the minimum wage increase. The members will be surveyed a few more times over the course of the year.

“Depending on what we hear, we will decide what, if any, action to take,” Cherniak said. “If there has been little to no impact, we will leave it alone, but if there have been major impacts, we will decide if we need to lobby the government.”

In May, the Ontario government announced the largest increase to minimum wage in the province’s history. It would be increased from $11.60 to $14 on Jan. 1, 2018 and will jump to $15 come 2019.

In the past decade, minimum wage has seen multiple jumps including in 2008 when it went from $8 to $8.75, to $9.50 in 2009, $10.25 in 2010, $11 in 2014, $11.25 in 2015, $11.40 in 2016, $11.60 in 2017 to the current rate, a 60 per cent increase from 10 years ago.

Under the same plan to create better jobs and fair work places, the Ministry of Labour made major changes to the employment standards and labour laws, known as Bill 148. The legislation included mandating equal pay for equal work, expanding personal emergency leave and more.

From the first time it was announced, York Region chambers of commerce have voiced their concern about too much too fast without knowing the impact it would have on local businesses.

At a town-hall meeting organized by the chambers, the Ontario Chamber of Commerce representative encouraged small business owners to fight the Fair Workplaces, Better Jobs Act, calling it “nutso” and “heartbreaking” for small businesses.