Ontario’s the Minimum Wage Increment

The Minimum Wage in Ontario

The minimum wage is a national and regional job norm that ensures that all workers are paid a minimum wage. Regardless of whether they work full-time, part-time, piece rate, hourly rate, or salary, all employees are entitled to the minimum wage. The minimum wage rate in Canada is one policy that has continually demanded reforms in order to remain relevant. By the 1st of October 2017, the minimum wage rate in Ontario is projected to rise from $11.4 to $11.6. Economists and politicians, among others, have debated whether the Ontario minimum wage increase is appropriate. Ontario just like any other Canadian city requires the rise in the minimum wage so as to boost the lives of the workers and improve the region’s economy.

Building the Region’s Economy

The first and the principal reason why there should be an increase in Ontario’s minimum wage are that it would help in building the region’s economy. The higher wages can, in fact, assist in the controlling of the trade expenses by dropping the worker turnover because once they do get a better pay and don’t run away, the company does not incur extra costs in training the new staff leading to its growth and eventually that of the economy. Moreover, the wage increment in the region would mean more money in the workers’ pockets which, in turn, use the money within the locality resulting in the improvement of the area’s economy.

Contributing to the Economy

According to Frache, the economist, the majority of the retail traders always claim that the primary significant thing they want is clients, and if the employees have no cash to use, then there is no way they can contribute to the economy (Crawley, 2017). The principle is the Henry Ford Effect, the prominent American industrialists who gave his workers a good salary so as to be in a better position to purchase the cars from his company (Herald, 2015).

Impact on Profit Margins and Competition

The critics to the minimum wage rise in Ontario argue that it would result in the loss of profit margins which would also mean a layoff to most employees. In the real world, that is not always the case as there is the passing of the increased costs to the customers in the form of somewhat high prices. For that case, a slightly higher minimum wage is more likely to lead to the shoes that cost ten cents extra than it is to result in the layoffs of the employees. Another good thing with the equal rate wage increment is that it makes it possible for the leveling of the playing ground. That is to say, the companies that have been willing to give their workers a better pay would not have to be anxious anymore concerning the undercut by the dishonest competitors who give the workers the poverty wages.

Improving Living Standards and Reducing Inequality

Another reason why there should be the rise in the minimum wage in Ontario is that it would offset the Canadian income inequality and also improve the workers living standards in the region. According to Nicolle Morton, the strategic development director at the Wise and Hammer of Hamilton’s digital communications agency, increasing the minimum wage would mean that the staffs get the best from the company. Furthermore, they would lead a healthy lifestyle as they get enough rest after work because they do not require more occupations so as to sustain themselves (Blackwell & Grant, 2015). When the individuals engage in many jobs to increase their earnings, it means that they sacrifice their rest and sleep time making them vulnerable to many health related issues such as procrastination. So by getting a better pay in Ontario, the population would be medically healthy and of better living standards.

Alleviating Poverty

When standardizing the lowest pay, the preliminary position should be the ideals of a region or country. Exclusively, there should be the least amount of the fee that permits any individual that works full time, to be living above the poverty line, but the Ontario’s current least wage is not even close to the threshold. There must be a substantial increase in the Ontario’s minimum wage for the employees to keep off from poverty. In fact, there has been a call for the minimum wage rise in Canada as a whole by the members of the health provider so as to fight poverty. The group claims that by doing so, the government would alleviate the underpaid employees out of poverty (Lammam, 2014).

No Adverse Impact on the Economy

The critics to the wage increment in Ontario claim that the jump is big, unprecedented and not necessary. The argument is wrong and baseless as Ontario once lifted its least pay by 65% in the 1970s over a shorter duration, but still, the economy never fell. Even in the recent years, there are quite some American states that increased the minimum wage for the employees and are still doing fine (Herald, 2015). For that case, the increment in the Ontario’s workers minimum wage has no adverse impact on the economy whatsoever.

Promoting Education and Equality

There is the argument by those who are against the minimum wage hike in Ontario that it would lead to the encouragement of the school dropout cases. They claim that when there is high minimum wage for the jobs, the majority of the students would go for them and eventually inhibit the education and credentials acquisition that later yields high monetary rate of return. However, that is not usually the case as there are laws that govern every industry not to employ the young individuals and can even lead to the closure of the company or arrest of the employer should such laws be violated. In fact, the high minimum wage would make it possible for the majority of the individuals in Ontario and Canada as a whole to achieve better education as they would be in a better position of raising the school fees for the higher education (Gunderson, 2014).

Ensuring Equal Treatment and Fairness

The last reason why there should be hiking of the Ontario’s minimum wage bill is that it would create a sense of equality for the entire workforce especially the youth who are always more vulnerable to the workplace discrimination. The young employees usually get less pay than the other staff members an idea which is contrary to the Canadian Charter of Rights and Freedom that pledges equal and fair treatment of all the workers. If there is no rise in the minimum wage in Ontario, then it would mean that the government is not taking care of the citizens by ensuring that there are no violations of rights (Canadian Labor Congress, 2015).

Conclusion

The Canadian government should make sure that there is an increment in the minimum wage in Ontario to improve the economy of the region through the cash flow in the hands of the employees. Moreover, the Ontario’s local authority should not listen to the claims of the critics regarding the impacts of the minimum wage increment to the economy as even the United States have done so and there are no adverse consequences to the economy. Poverty in Ontario would be a thing of the past if there is the rise in the minimum wage and the Canadian government would never incur more expenses again in fighting the predicament in the region. For that case, there should be the sufficient increment in the Ontario’s minimum wage bill as soon as possible.

References

Blackwell, R., & Grant, T. (2015, October 1). Minimum wage increases reignite livable income debate - The Globe and Mail. Retrieved from http://www.theglobeandmail.com/report-on-business/economy/five-provinces-hike-minimum-wage/article26618941/

Canadian Labor Congress. (2015, April). The Minimum Wage in Canada. Retrieved from http://canadianlabour.ca/sites/default/files/media/minwagecanada-2015-04-13%20 (1).pdf

Crawley, M. (2017, January 19). Campaigners push Liberals for $15 minimum wage in Ontario - Toronto - CBC News. Retrieved from http://www.cbc.ca/news/canada/toronto/15-minimum-wage-ontario-1.3940676

Gunderson, M. (2014, July). Minimum Wages: Good Politics, Bad Economics? Retrieved from http://www.northernpolicy.ca/upload/documents/publications/commentaries/npi_minimumwages-gunderson_july2014_en.pdf

Herald, C. (2015, June 27). McGowan: Five reasons the minimum wage should be $15 an hour | Calgary Herald. Retrieved from http://calgaryherald.com/opinion/columnists/mcgowan-five-reasons-the-minimum-wage-should-be-15-an-hour

Lammam, C. (2014, January 27). Higher minimum wage will lower prospects for the poor | Financial Post. Retrieved from http://business.financialpost.com/uncategorized/minimum-wage-poor