By Madeleine Villa [1] and Jessica Clement [2]
BELLEVILLE – Local businesses are facing difficulties adjusting to the new Ontario minimum-wage increase, according to a spokesperson for the Quinte West Chamber of Commerce.
“This is unfair and disturbing for businesses, that this is being forced down on them so rapidly,” Suzanne Andrews, the general manager of the Quinte West Chamber of Commerce, [3] said.
On Jan. 1, the minimum wage in Ontario went from $11.40 to $14 an hour. The provincial government said the increase will help workers and their families who are struggling to get ahead in a changing economy.
QNet News reached out to managers of over 15 local businesses this week to find out if the minimum-wage increase has affected staff hours or resulted in layoffs. Almost all said it hasn’t had an impact; two declined to comment.
Andrews said this doesn’t come as a surprise. “They will come to (the chamber of commerce) to express their concerns, but they’re quite wary about speaking to the media about the changes they are having to make,” she said. “They don’t want something negative written about them. They’re just trying to adjust to the changes the best way that they can, but there have been some negative stories published during this time about certain businesses. Owners are going to be reluctant to talk.”
The higher minimum wage will have a minimal impact on businesses already run by workers paid higher salaries, Andrews said. But businesses in sectors with small profit margins – such as restaurants, agriculture and assisted-living facilities – will notice the biggest changes, she said.
Dave Fairfield, the owner of Quinte Payroll, a company that provides payroll services for other businesses, said, “It looks like this is going to be especially nightmarish for anyone with part-time and casual employees.”
Minimum-wage workers aren’t the only ones affected, Andrews said. Employers will feel the need to raise the pay of workers who were previously making $14 or $15 an hour, she said.
“Competition for unskilled and skilled workers has become quite fierce in the Quinte area” as unemployment levels have dropped in Ontario, she said. “People were already making ($14 or $15 an hour), and now employers are trying to raise that further to be fair to their employees.”
The provincial Ministry of Labour announced recently that to ensure businesses are abiding by the new pay regulations, 10 per cent of workplaces will be inspected and may be fined if they are not compliant. The ministry has hired 175 employment-standards officers to do the inspections.
The ministry also has a hotline for businesses to get information about the new pay rules, but it’s often busy because of high number of calls. Andrews said has been frustrating to business owners.
The legislation that raised the minimum wage, Bill 148, the Fair Workplaces, Better Jobs Act, [4] also includes other changes, such as increased vacation time, more sick leave and personal days, and new calculations for statutory holiday pay. Fairfield, of Quinte Payroll, said he has had many calls from clients concerned about the calculation for holiday pay.
Andrews said employers she has spoken to are unhappy with the negative tone coming from the office of Premier Kathleen Wynne, who recently referred to the owners of a Cobourg Tim Hortons franchise as “bullies” for cutting employee benefits and taking away paid breaks after the minimum wage went up.
“This was all pushed forward very rapidly and businesses are reacting the best way they can,” Andrews said.
Some businesses will have to make changes – raising prices, adjusting operating times or cutting back on employee benefits and hours – to manage overhead costs and remain profitable, she said.
“Businesses feel like the province has abandoned them and put their businesses at risk just so they can win the next election. Businesses are abandoning the spirit of the legislation because of the rushed implementation of Bill 148.”
One Quinte-area business owner who has acknowledged being affected by the change is Marc Bourgeois, who co-owns Jazz Hair Studio in Belleville with Rick Maybee. The two closed their Trenton location because of the requirements of Bill 148, Bourgeois told QNet News.
After hearing last summer about the upcoming changes, he and Maybee began planning for them, and ultimately decided not to renew the lease on their Trenton hair studio.
“We relocated our staff to our Belleville location because we had a lot of underutilized space on our second floor,” he said. Eight of his 10 employees moved to the Belleville salon, while two left the company. One of them used the opportunity to start her own salon in Trenton.
The change has had some benefits for the company, Bourgeois said. Although he and Maybee enjoyed running the second hair studio in Trenton, the additional stylists now at the Belleville location have allowed them to expand their hours and keep their business open seven days a week, he said.