Easy come, not so easily gone where minimum wage hike is concerned

By Jeff Korenko
News publisher

In precisely three weeks time – on March 31 –  the minimum wage paid to workers in Ontario will once again see an increment; this time from $9.50 to $10.25 an hour. Upon initial consideration, what adds up to roughly an eight-per-cent hike in pay seems fairly reasonable – perhaps if it was being rolled out in many other provinces across the country.
However, in this province; one which just happens to be forging ahead with an ill-conceived plan to transition to a harmonized sales tax totalling 13 per cent in a little more than three months; a solid argument could be made that the amount of the minimum wage bump falls ridiculously short.
So much so that it could be said somewhat tongue-in-cheek it actually makes sense that the increment becomes the day before April 1 – you know... April Fool's Day.
Yes, the $9.50 per hour rate now – for the time being, anyway – puts Ontario almost at the top of the list where minimum wages paid out across the country are concerned.
(Nunavut at $10 per hour, ranks No. 1).
But, compared to how much the cost of living has continued to increase for such essentials as utilities, groceries and day-care, it amounts to little more than peanuts; a glorified raise that coincidentally equates to the eight per cent more we will be paying for the majority of our goods and services come July 1.
While it can perhaps be argued that many employers in this province pay more than minimum wage, how many of these businesses will implement an across-the board increment to their staffers to reflect the raise?
Here in Glengarry, far too many businesses – especially in the hospitality/service fields – offer a token rate of pay that is above minimum wage, but nowhere near enough to live close to comfortably on, when you take into consideration the escalating cost of living.
Let’s not forget that residents in both North and South Glengarry will very likely also see their property taxes go up this year.
Yes, there is ample opportunity for those in the service and hospitality industries to earn substantially more through gratuities than the minimum wage employers have to pay them.
But what about the workers who are not eligible for such added pay?
The provincial government had an opportunity to make a bold statement to its most blue of blue-collar residents.
To be fair, minimum wage has increased from $8.75 on March 31, 2008; a 17-per-cent increment in two years; but in the end, an additional 50 cents an hour over the course of one month at full-time, amounts to only an extra $80 before taxes.
Instead of a profound statement, that is akin to a whimper.
Some local business owners have already admitted they will simply bump up their prices to justify paying more in minimum wage.
So much for that extra 80 bucks. Easy come, but not as easily gone, this time around, we gather.
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Don’t forget to tune into the CBC broadcast this coming Monday evening at nine, as the 12 finalists in the Kraft Hockeyville competition will be announced.
Have a great week.