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Ontario increasing minimum wage

Thursday, January 30, 2014   by: SooToday.com Staff

NEWS RELEASE

ONTARIO MINISTRY OF LABOUR

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New Legislation Would Tie Minimum Wage to Consumer Price Index

Ontario is increasing the minimum wage from $10.25 to $11 per hour on June 1, 2014.

This new rate reflects the rise in the Consumer Price Index (CPI) since the last minimum wage increase in 2010 and is part of the provincial government’s commitment to fairness.

The government will also introduce legislation that would tie future minimum wage increases to the CPI.

This will ensure the minimum wage keeps up with the cost of living, and that increases are predictable for businesses and families.

Under the proposed legislation, increases would be announced by April 1 and come into effect on Oct. 1.

The proposed legislation would act on the recommendations of Ontario’s Minimum Wage Advisory Panel, which included business, labour, youth and anti-poverty representatives.

Ensuring the minimum wage is fair and predictable for both workers and business is part of the Ontario government’s economic plan to invest in people, build modern infrastructure and support a dynamic and innovative business climate. 

“Increasing the minimum wage will help improve the standard of living for hardworking people across the province, while ensuring that businesses have the predictability necessary to plan for the future” says Kathleen Wynne, Premier of Ontario

“Our government is focused on helping hardworking Ontarians by ensuring fairness for people living on minimum wage and predictability for business. By establishing a transparent, fair and responsible method of setting minimum wage in the future, we are taking the politics out of minimum wage. This will provide fairness for Ontario workers and their families and predictability and transparency for our businesses to remain competitive and succeed” says Yasir Naqvi, Minister of Labour

Quick Facts:

  • The 75 cent increase reflects the annual change in Ontario’s Consumer Price Index (CPI) since the last increase on March 31, 2010.
  • The province’s Minimum Wage Advisory Panel recommends that the province perform a full review of its minimum wage rates and revision process every five years.
  • The panel held 10 public consultations across the province and received more than 400 submissions from organizations, businesses, and individual Ontarians.
  • Increasing the minimum wage supports Ontario’s Poverty Reduction Strategy. In the first three years of the strategy, approximately 47,000 children and their families were lifted out of poverty.
  • The current minimum wage is $10.25 per hour. It has increased nearly 50 per cent since 2003.

To learn more read the Minimum Wage Advisory Panel’s Report.

Know your rights and responsibilities under Ontario’s Employment Standards Act, 2000.

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Comments
52
Note: Comments that appear on the site are not the opinion of SooToday.com. If you see an abusive post, please click the link beside the post to report it.
justsomeguy 1/30/2014 10:55:33 AM Report

It's becoming harder & harder to survive in this province.
KBO 1/30/2014 11:11:32 AM Report

Hoped they increase disability pension as well. Based on a 40 hour work week my pension works out to $6.70/hour.
eadiecougs 1/30/2014 11:14:09 AM Report

11 dollars an hour boy they will take it taxes CCP and union dues make it 5 cents an hour,plus the prices will go up because the greedy stakeholders will need more money to cover up for the increase
Beej 1/30/2014 11:32:34 AM Report

Still leaves people below the poverty level.
T-pot 1/30/2014 11:40:00 AM Report

Greedy stake holders? Ever run a small business? Probably not. Did you notice the CPP EI and Income tax that comes off your cheque? Did you know your employer matches that as well? If you pay $5 off your income, your employer pays another $5. Someone making $11/hr costs roughly $18 or more depending on the hours. Someone that charges $19-$20 an hour has to raise their rates to close the gap.

Everything else is going to go up .75 now, and you won't see a difference anyway.
frogee 1/30/2014 11:42:43 AM Report

how is the poverty level based on then?,, welfare recipients?,, whats that telling you.?
icemantbi 1/30/2014 11:44:44 AM Report

You will now be paying more for your Timmies. Their coffee prices ALWAYS goes up when the minimum wage increases.
steelworker 1/30/2014 11:45:59 AM Report

I smell an election coming.
Number One Son 1/30/2014 11:51:51 AM Report

KBO, ... your disability pension is not designed as a regular income,.... it is compensatory. If you can sit at a keyboard and type this bellyaching, you can work at a job with those skills. Find one and quit your whining.
justsomeguy 1/30/2014 11:59:42 AM Report

@T-Pot - I agree with some of what you're saying. If min wage goes up $1 then other prices will go up 0.75 to 1.25. It's going to be a wash again.

Trying to operate a business in Ontario is difficult. WSIB, EHT, etc, etc. I've wanted to operate my own business for years but between the business environment in SSM & Ontario, it's way to tough to get started.
damzull1 1/30/2014 12:03:18 PM Report

75 cent WOWWWWWWWWWWWWWWWW just think of what you can do with all that money THANKS ONTARIO YOU ROCK
T-pot 1/30/2014 12:03:42 PM Report

It's tough. You want to pay your employee's more to make it easier to retain employee's, but yet again you don't want to gouge the customer in the end. I found a delicate balance to do this, but minimum wage raises just smashes it. It's frustrating to read this.

If they want to raise out of the poverty line, the best way to do it is take off the bottom line. Lower gas prices. Raise income allowance and lower income tax rates.

ARGH! It's frustrating. People think just throwing money at things will fix the problem. People will get excited that minimum wage will go up! More than half won't realise that so will everything else and the government benefits most of this! more income tax, prices of goods go up - so does the tax!
justsomeguy 1/30/2014 12:11:56 PM Report

Thanks to the current Ontario government we are being gouged in ways no one is aware of.

One small example - taxes on new tires. Every time you buy a new tire you're subject to an environmental tax which is then taxed again. So you pay this fee/tax and then you're taxed on that.

It makes me sick.
damzull1 1/30/2014 12:12:07 PM Report

it was supose to be 14.00 originaly HMMMMMMMMM they thought about to long i guess we still dont deserve to eat. ATTA GO ONTARIO I WONDER HOW THERE RAISE'S ARE
damzull1 1/30/2014 12:14:13 PM Report

CANADA SUCK'S AND ALL THE POLITICIAN IN THIS STINKING COUNTRY ITS ALL FOR ONE AND ONE FOR ALL
Bad Dawg 1/30/2014 12:17:36 PM Report

If you make less than $44,000 you are under the poverty line.
Welfare bums will also get an increase for doing nothing!! Our Gov't feels they need to raise their monthly allowance to support these lazy arses. While hard working people get to pay for them and get nothing but a higher tax bill.
Just Curious 1/30/2014 12:20:10 PM Report

People like me on OAS and CPP are the ones that get hurt the most..The cost of everything will now go up but the pensions remain the same so we fall farther behind...:(
steelworker 1/30/2014 12:20:58 PM Report

Don't even mention the price of electricity going up by 40% over the next few years. Thank you Mr. Wynne and your fellow Liberals.
justsomeguy 1/30/2014 12:25:51 PM Report

Unfortunately as we get closer to election time Ontario will hear more & more promises. Parties will promise 130% and we'll see 2% of them fulfilled. And as usually the people of Ontario will fall for it, but what other choice do we have? None of the parties are any better than each other.
dude4975 1/30/2014 12:29:17 PM Report

Why Doesn"t the government freeze price hikes and then we won"t need raises, we get a raise and what you think happens , prices on everything goes up and taxes also , so the raise is gone again,take a look at what a refugee status person gets and then look at what a Canadian retiree that's worked most his life and born here gets and paid into the fund , you we will be shocked if not more .
GenerationXYZ 1/30/2014 12:39:32 PM Report

This is why the middle class is increasingly shrinking, along with the raise in minimum wage, prices will go up to.

I also feel sorry for those who make just above minimum wage because they won't see a 75 cent increase in their wage. E.g. A person making $13 an hour right now won't see their wage increase to $13.75, at least I don't think so.

And to the person who read about minimum wage being increased to $14 an hour, I think that's being phased in over a set number of years. I don't recall how many.
iamtc 1/30/2014 12:51:18 PM Report

This story is a joke minimum wage is a joke and so is the people in charge or ruling us people working minimum wage jobs should walk off and then see what might happen but people in this country province are all out to lunch and don't fight fir anything but booze and drugs
dust2 1/30/2014 1:03:04 PM Report

work is a combination of skill+effort. there's minimum wage jobs for a reason, they require minimum skill, but the same effort.

why are we rewarding mediocrity? get an education, get a skill, a trade, something. people settle for a job at wal-mart for the rest of their lives, why should we pay those people more?

small businesses get hit hard too. people mess up my orders and screw up transactions at minimum wage, why should we pay those people more money to be mediocre?
justsomeguy 1/30/2014 1:06:35 PM Report

@dust2 - is the issue that we're rewarding mediocrity or that it's simply expensive to live now?

I have 2 degrees but am only making $45,000/yr gross. My annualized net drops me down to just below $37,000/yr. I don't live extravagantly by any means. But after putting a little aside in savings, RRSP, property tax account, I'm scraping by paycheque to paycheque.
andrews 1/30/2014 1:17:13 PM Report

The rage against minimum wages increasing is ridiculous. Inflation occurs every single year, and most people working above minimum wage levels will have annual wage increases to compensate for it. Minimum wage doesn't have this.

You complain that minimum wage increases will increase the price of goods? Do you honestly think the cashiers hourly wage is THAT big of a chunk of the price of your groceries? Managers and supervisors get regular increases, and when prices go up due to inflation from increased cost of labour and goods noone complains about them. Why should the little guy get stomped on?

Don't complain that they are untrained or uneducated. Probably every single person on this site can name at LEAST one person will a college or university degree that is stuck working at a call centre or a crummy minimum wage job. There aren't exactly jobs aplenty just waiting to be snapped up. For every job that pays an actual decent wage ($15 or more an hour) they get at least ten applications.

To the gentleman complaining about his incompetent employees messing up orders... How about actually paying a decent wage for the position and hiring someone with experience? No one is going to care too much about a job that pays as poorly as minimum wage. Pay someone well, however, and suddenly they have a job they don't want to lose. Maybe they'll work better. It's almost like incentives exist for a reason...
dust2 1/30/2014 1:24:28 PM Report

that's completely ignorant to small businesses. a small business with three employees at 10/hr now has to pay three employees 14/hr. most people here have never run a business, but you don't just increase profit margins out of your ass. the only real way to pay those people 14/hr is to cut one of them.

how about they should make an effort in their job because they're getting paid? how arrogant is it to do a crappy job at mcdonalds only because you're being paid 10/hr. that person isn't someone deserving of a job. when you work, you make an effort and do a good job.

all those people who didn't go to school or didn't want to make an effort in their life? yeah let's give them more money.
justsomeguy 1/30/2014 1:33:42 PM Report

Maybe it's a generational difference. I can say that my parent's generation and my generation weren't happy to start at the bottom with a crappy job and equally crappy pay but we knew to put the effort & time in to get where we wanted. Did I ever work some crappy jobs as a kid.
andrews 1/30/2014 1:42:40 PM Report

Well for starters its 10.25 increasing to 11, not 14. That's 0.75 an hour. Let's round it to an even 1.00 an hour to include the benefit contributions employers have to make, even though it won't be quite that high. Three employees? I'll assume they are full time. $24 a day. Yes its obviously money that needs to be recovered, assuming the business isn't doing so well and can't afford to pay employees a little bit more. But it's not a colossal sum to overcome.

I completely agree that people should give 100% when they work. I worked minimum wage for years going through school and I always gave my best effort. However, when you're in a minimum wage position, it isn't as scary to lose your job. They can be replaced. The only field where there are plenty of jobs available are in jobs that pay the minimum wage. Pay someone more than minimum and what happens? The job isn't easily replaceable and suddenly you're looking at someone concerned about keeping their job.

And again, you're assuming that people on minimum wage put in no effort. I had to work minimum for quite a while after I graduated from university and I promise you, there is no yellow brick road leading to wealth and happiness for all who strive for it. The economy literally REQUIRES that there be people that work minimum wage jobs. If 100% of the population became educated, what do you think would happen? Yup, plenty of educated burger flippers. Ultimately, someone HAS to flip the burgers. There are currently more educated people than there are positions for them, and it's unfortunate. Don't just put down everyone that makes a lousy wage assuming they threw their life away when many of them gave, and are still giving, honest tries, and are struggling to get by on a $20,500 a year job that barely covers rent and bills (if that)
KBO 1/30/2014 2:07:00 PM Report

To Number One Son: Maybe you should know about someone's conditions before you spew condemnation in your remarks. I do not sit and aimlessly type all day. I require someone to type for me. You are an ignorant A-Hole.
dust2 1/30/2014 2:09:23 PM Report

> "there is no yellow brick road leading to wealth and happiness for all who strive for it"

keep looking. the smart and the willing are able to get to the top. some people will just never be wealthy because they don't have the drive.

the road is there. it's hidden and hard to find. it's a challenge for a reason.
shju 1/30/2014 2:40:09 PM Report

This makes me so angry, min. wage was never designed to give you more then the basics of life. You arent supposed to have a house or a car or any luxuries. I am so glad I went to school for 3 years then trade school for another 1.5 hours and worked for 9000 hours to only see my once middle wage income now reduce to a wealthy poor person. When you hike up min wage you hike up inflation. If min wage goes up 10% and my wage increases by 1% it will drive up inflation and make any educated jobs worthless to have. I guess the jokes on me. You need a 3 tier system or you end up with rich and poor and no middle class. This is why we are doing nothing in society anymore. Back 40 years ago you had the distinction of 3 tiers of wealth. Look at countries that have 2 tiers.... Everyone is a third world country. I am sick and tired of seeing this country going down the toilet because people are too lazy and don't want to work for nothing. I WANT EVERYTHING FREE!!!!!. Race,religion,sex wars about wage and equality are destroying every last fibre of work ethic out there. I so cant wait until a good rebellion happens.

Btw I want a bunch of free things and tax credits because I am an Italian male. I didn't go to school, I didn't finish high school. I have 12 kids. But I want everything and if I don't get it you are all to blame.(Sarcasm)
grunt 1/30/2014 2:48:06 PM Report

dust- you're an ass
andrews 1/30/2014 2:52:54 PM Report

@dust

What happens if 100% of people chase this? everyone becomes rich? If everyone is an employer, who will be employees? The economic system we use requires that there be a lower income class. I get that. Why can't we have a better minimum standard for them to live by though? Many people try and fail to get out of it. Not everyone that isn't successful is lazy.



Also, the guy who said this:

"This makes me so angry, min. wage was never designed to give you more then the basics of life. You arent supposed to have a house or a car or any luxuries."

You just described welfare, not minimum wage. It's painful how ignorant that statement was. My brain actually hurts a little bit right now.
shju 1/30/2014 3:00:41 PM Report

Welfare and min wage are supposed to be the same thing. Welfare was put in place so that you can maintain the minimum amount of money so that you can survive when you lost your job. People now days are living a lifestyle off welfare. There is a reason why its call MINIMUM wage. When you raise min wage it causes every consumer product to increase by the amount you raised min wage. If you didn't have every consumer product cost so much you wouldn't need 2 people working middle class jobs to survive. If one person stayed home that opens up another middle class job and the job market balances out. Greed by the poor people and greed by the rich people are phasing out middle class and costing society in the long run. If you cant see this then well I don't know what to tell you.
dust2 1/30/2014 3:01:52 PM Report

>"What happens if 100% of people chase this? everyone becomes rich?"

do 100% of people who take a test pass?

shju is right, if people want more they should work for it. people make terrible purchasing habits like alcohol and smokes, they finance a car when they should just buy one, etc etc.

why go to college and actually work to earn a good living when you can just keep riding the minimum wage train.

college isn't necessary either, a drive to work hard and make something of yourself is. people don't realize that and people want everything handed to them.

dont like being on min wage? cool, get a skill or trade, and get out there. you have to fail over and over before you become successful, no one makes all the right decisions in life every time.

shju is right with furthering your education too, unless my job goes up 4$ an hour too I don't see why they should get it either. it makes my efforts look worse compared to the people who do nothing and get 14/hr.

people can cry and complain all they want, but they can also change the way they are and make something better of themselves
Javaman 1/30/2014 3:10:37 PM Report

I AM WAITING FOR HARPER TO INCREASE MY OLD AGE PENSION.....might be a long wait eh ?
Tills 1/30/2014 3:16:46 PM Report

totally agree suju!
Vmax-4 1/30/2014 3:17:22 PM Report

Wow there are some really out of touch and ignorant people posting on here. Check minimum wages for the rest of the world, ours is near the top. Minimum wage in Mexico is probably about a $1 an hour, pretty hard for businesses to compete with that. Gee, I wonder if that has anything to do with all the losses of manufacturing jobs?
shju 1/30/2014 3:22:25 PM Report

Back 10 years ago when when me and my wife were making a combined income of 40k a year off min wage we managed to have a small house, 2 vehicles. Me made our lifestyle according to the money we took in. We didn't have cell phones, we didn't go out every weekend. You make PRIORITIES in life and that what you get. We managed to put ourselves both through school and we only had 1 child. We didnt sit there and complain about how everyone else had everything and we had nothing. We still did whatever we want but within reason. Its called you save for it. Don't eat out every night. You gotta work for a reward. Not the other way around. We both busted our asses off in the last 10 years to make our wages now. Combined we make a good living now but we had to strive to get here. People may look at us now and say oh your lucky, luck has nothing to do with it. Its called determination. Hand outs will never make you rich, hand outs will never make you happy, hand outs.... ha. We did it the hard way and have more to show for it mentally and physically then any hand out can give us. Work people! The amount of money most people spend on cell phones you could buy a new car with payments.... I bet you every person on min wage or welfare have a cell phone. Don't use your cell phone for a month, your life wont change. That money that you didn't spend will change your life.
itsme29 1/30/2014 3:33:10 PM Report

min wage jobs are for kids working at tims and mcdonalds there not ment too be buying houses and cars with those jobs don't justify earning 11 bucks an hour... get real u wanna make real money get a real job and leave that burger flipping for some student trying to earn a lil money to spend on a sat night
itsme29 1/30/2014 3:33:11 PM Report

min wage jobs are for kids working at tims and mcdonalds there not ment too be buying houses and cars with those jobs don't justify earning 11 bucks an hour... get real u wanna make real money get a real job and leave that burger flipping for some student trying to earn a lil money to spend on a sat night
christmas 1/30/2014 3:36:55 PM Report

What a farce. The only winner here is the Provincial government.
They will collect more taxes, cpp and unemployment insurance from both the employer and the employee. So as the minimum wage increases so does the cost of doing business. In simple terms if the wage goes up $l.00 it will cost the employer about $1.55 just to bring it back to an even level before the raise. Now to save money he is forced to lay off, decrease hours and work more hours himself to make ends meet. More and more small businesses are being forced to turn their operation into PART TIME, by laying off full time and creating a negative environment in the employment field. Just look around you and find out how many people you know are working more than one job to make ends meet. A large portion of them rely on a couple part time jobs because in the past the employer had to cut cost to survive. I am sure they would love to just have a full time job as opposed to 2 part time jobs which combined don't equal the full time wage. working Another thing the average person forgets is when the price of gas goes up the employer has to swallow that increase. what about insurance -both liability and vehicle insurance, running an office, heat, repairs to the vehicles, licensing, and the list goes on. Have you ever owned a small business, then you know what I am talking about. In the end nobody wins except the reigning government to spend the so called 'extra pot of gold' they never had before to only squander by fooling and selfish spending. All those in favor of the increase will never see the benefit as all operating expenses will escalate. Possibly the government should subsidize better schooling for those on the poverty level and get them into the 'full time job market.
............... 1/30/2014 3:47:36 PM Report

Everybody loses but the Wynne government, whom will capitalize on more tax dollars. People who Make $10.25 an hour really get over $15.00 and often don't respect all their employer does for them by way of contributions and extras. If you want more money get an education or start your own business and see how it feels. People who make $10.25/Hour will realize they'll lose money and lots of it as everything with cost more obviously, but common sense don't prevail.
christmas 1/30/2014 3:50:55 PM Report

Another thought that crossed my mind is HOW MANY PEOPLE CRYING POVERTY have a cell phone or possibly more. On the weekends how many of you visit the local bars because you think you are entitled to enjoy life a little. Can you afford these two luxuries and still cry poor or can you take that money and direct it to more positive things to live a better life for you and your family. Just a thought. If you do then you will KNOW WHERE YOUR CHILDREN ARE and set the example.
mosquitos 1/30/2014 4:16:21 PM Report

More jobs shed by Wynne/McGuinty. Hudak will create 1-million jobs in 10-years. Harris did and so can Hudak. Get real, another nail in the provincial coffin.
D0BBER 1/30/2014 4:36:20 PM Report

Historically minimum wage jobs were intended for our youth .. so they could enter the work force and gain experience earning their way and paying their share of income tax. They were for our college students so they could work their way through school and limit their student debt. Was there a huge cry for a higher min wage then ??? NO ... The reason for the demand for a huge increase to minimum wage is because those positions are being held by the baby boomers ... the retired people most of which are already sitting on old age pension and CCP .. or some other form of additional pension.

Baby boomers are the largest voting force alive right now, so the government is catering to them ... Its been this way for 40 years and its going to continue !!
canadiens_8 1/30/2014 7:20:52 PM Report

Just means prices are going to go up for a lot of things, especially basic food and services. Not to mention managers and owners are more than likely going to cut hours here and there to make up for the loss.
matt298m 1/30/2014 9:16:55 PM Report

For those on minimum wage, if your employer could pay you LESS, he would, but the government won't allow it. Makes you feel important, don't it?
Skuggs 1/30/2014 10:01:57 PM Report

My gf and I both survived on min. wage while we were in school. yes u make sacrifices but you live within ur means, we still had everything we wanted and also travelled. you just have to be smart. For anyone who wants to complain about it they have the option to go to school and do something about it. We both went to school and now make good money. Bitchin wont get u anywhere!
Brianne 1/30/2014 10:37:24 PM Report

When your entirety of your earnings is exhausted on food and shelter. Your labours are no longer viewed as an opportunity for economic advancement, but rather as an act of self preservation. In the real world ...... that's called "slavery".
christmas 1/31/2014 9:23:52 AM Report

The economy is supported by small and medium sized businesses 'THE BACK BONE' as the government proudly boasts.--just in case you don't know. Ask your MPP. The bigger corporations pay very little tax and have lots of tax breaks to overcome the operating expense. This increase of $.75 an hour just might be poison that will force businesses to close or declare bankruptcy. The government just out of the blue drops a bomb as they did yesterday. How about giving the business sector at least a year to hedge against the increase and to restructure to accommodate the increase. It is an apparent cash grab for the province and little do they care about who it affects--the back bone of the economy --small business. Having said that one might venture further to explore the ever growing underground economy which certainly will get another solid reason to expand more than ever. We all know I am sure of some businesses that are already doing this 'pay under the table' which is sometimes the only way to survive the stupid decisions our government makes. Bravo to the world's smartest governing body which I am so embarrassed to even admit we put them in artificial power.
mudrunner 1/31/2014 12:38:03 PM Report

They need to raise it so they can taxes us more so people can sit on welfare/ODS
more longer with out even trying to look for work, plain an simple.
Comments
52
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