Sign in to follow this  
Jaydee

Conservatives....The Future of Ontario

Recommended Posts

There are other problems for instance.  If you give a new unskilled worker $15.00 per hour then the skilled worker will expect to have the same wage gap between them and the newbie For instance, Line Cook at $20.00 when newbie was at 13.00 will now expect to to receive $22.00 a hour.

Quote

 

Alberta's move to increase its minimum wage to $15 an hour by 2018 could lead to the loss of roughly 25,000 jobs. Alberta, being a boom and bust economy, would be better off taking current and future economic conditions into account when considering any future increases to its minimum wage. The C.D.

 

 

Share this post


Link to post
Share on other sites
On 1/10/2019 at 11:02 AM, Jaydee said:

I have a favourite restaurant my wife and I frequent. Before the mandatory Liberal minimum wage increases our bill used to come in around $47 give or take. Since then the EXACT SAME ORDER costs $62 > $63.  A 25% increase ..:head:  ...Meanwhile my pension increased a whooping 1/2 % on January 1st this year. )

It’s not the restaurant fault and it’s not the employees fault..they had no choice but to comply....This is what happens when an out of control socialist government forces price increases in an area where free and fair enterprise should have control over. At some point citizens will say NFW and adjust their spending habits. Who will be the losers then ? the servers ?  the cooks ? the delivery person ? the people who clean ? The suppliers > etc etc....it certainly won’t be some socialist freak show called Kathleen Wynne.

 

The ripple effect of Ontario’s minimum-wage increase

 

The economic impact of Ontario's minimum-wage hike on the province's lowest earners has received a great deal of attention, but the effect is felt more broadly by employers who face labour cost increases.

Ontario increased its minimum wage to $14 from $11.60 on Jan. 1 and plans another hike – to $15 an hour – next year. As predicted, some businesses responded immediately by reducing hiringcutting employee work hours, reducing benefitsand charging higher prices. Further, Ontario experienced a decline of more than 59,000 part-time jobs in January, as highlighted by Statistics Canada. While it is too early to attribute this decline to any specific factor, the sharp wage hike is unlikely to have helped.

The hikes also likely spread beyond those earning a minimum wage; an increase in the minimum wage ripples through the wage distribution and potentially leads to higher incomes for other workers.

Many workers who earned close to the minimum wage prior to the increase likely also saw higher paycheques. Their remuneration needs to go beyond the new minimum wage to reflect their experience and ability. Otherwise, non-experienced minimum-wage employees and more experienced or higher-skilled workers receive the same pay, skewing incentives in the workplace.

Similarly, employers may raise all wages to maintain a relative hierarchy of wages according to employee skill levels. This broader wage adjustment may be necessary for businesses to remain competitive in the labour market and reduce turnover.

 

In these scenarios, business owners may substitute low-skilled employees with high-skilled workers because of an increase in the relative price of low-skilled labour. As such, raising the minimum wage could also increase the demand for skilled labour and, consequently, their wages.

How far does this ripple effect spread across the wage spectrum and how wide is its impact?

A Canadian study shows that raising the minimum wage significantly affects wages up to the 15th percentile of the wage-distribution ladder, that is, of the wages of the lowest 15 per cent of earners. The further wages of workers are from the minimum wage, the more the effect of any increase in minimum wage is mitigated.

As such, a minimum-wage increase has the potential to reduce income inequality, as more workers at the bottom of wage distribution earn wages close to middle-class wages. However, depending on its size, an increase in the minimum wage can have sharply different outcomes on the distribution of overall earnings.

In a C.D. Howe Institute study, Professor Joseph Marchand of the University of Alberta argued the poverty impact of a minimum-wage hike depends on whether minimum-wage workers kept the nature and working hours of their employment unchanged. It is best, as a result, to introduce such hikes when the economy is strong.

study that looked at the effect of minimum-wage increases on wage inequality across Organization for Economic Co-operation and Development-member countries also shows the minimum-wage hike actually begins to increase income inequality beyond a certain "maximum-effectiveness" level. After reaching this level, additional wage increases are too high, insofar as they can be accompanied by significant job losses and actually increasing inequalities as a result.

Furthermore, a higher minimum wage results in higher labour costs that are eventually passed onto customers, causing inflationary pressures. Thus, while raising the minimum wage seems to have no initial ripple effect on wages at the middle or top of the wage distribution, the impact on inflation eventually results in higher wages across the wage ladder.

The January weakness in Ontario's labour market will no doubt spur a debate on whether the province has exceeded the threshold at which higher minimum wages actually exacerbate, rather than reduce, inequalities. It would be wise to consider giving the labour market more time to adjust to the recent increase before rushing forward with the plan for a second increase, to $15 an hour, next January.

https://www.theglobeandmail.com/report-on-business/rob-commentary/the-ripple-effect-of-ontarios-minimum-wage-increase/article38017258/

 

While I can't dispute your observation, it appears that restaurants in general are making a cash grab.  It isn't just in Ontario.  That's the effect of the bastardized version of capitalism in effect.

https://www.bloomberg.com/news/articles/2019-01-11/goodbye-date-night-u-s-restaurant-prices-jump-most-since-2011

Share this post


Link to post
Share on other sites

if an article uses words like "could", "might", "May"  then it is an opinion piece and not factual.

Share this post


Link to post
Share on other sites

“If passed, the province, developers and municipalities could, in theory, bypass some regulations,”

oopps ... there’s that word could again!

I never understood why municipalities couldn’t maintain oversight for their own drinking supply.

  • Like 1

Share this post


Link to post
Share on other sites

What Leftists don’t understand is that any one on the so called “right” think with their brain first ....and if common sense prevails.... expand their thinking using their mind. ( PS  there is a reason why it’s called the Right....because we usually are )

The exact opposite is true of the Left...the first question they ask themselves is “ How do I feel about it? “.....depending on the answer they come up with.....only then MIGHT Common Sense enter the equation.

Share this post


Link to post
Share on other sites

What you fail to acknowledge is that the right thinks of profit first, then walks back regulations to achieve it. Proven time and time again and still in effect.

 

Share this post


Link to post
Share on other sites

The left will be happy about the well deserved revenue generation here. There is no place I can think of that deserves photo radar more than Ontario.... ask any biker about idiot drivers there. Worst in Canada and  the US IMO. Well deserved! Make the rich pay....

https://torontosun.com/news/local-news/photo-radar-makes-comeback-this-year

Share this post


Link to post
Share on other sites
5 hours ago, deicer said:

What you fail to acknowledge is that the right thinks of profit first, then walks back regulations to achieve it. Proven time and time again and still in effect.

 

And the Left on the other hand thinks of wages first and then finds the company has gone broke. 🙃

  • Thanks 1

Share this post


Link to post
Share on other sites
53 minutes ago, Malcolm said:

And the Left on the other hand thinks of wages first and then finds the company has gone broke. 🙃

Now companies are finding that they can't hire/retain  people at the wage they are offering.  Watch what happens over the next few months.....

Share this post


Link to post
Share on other sites
13 minutes ago, deicer said:

Now companies are finding that they can't hire/retain  people at the wage they are offering.  Watch what happens over the next few months.....

The welfare roles will increase?   Some who think they deserve better wages will lower their expectations?  Those without jobs that pay them enough will move back in with Mom and Dad? 😀  Once again Ontario is leading the pack in that regard. ( I wonder if that was because of their Liberal Leanings?

Quote

Among young adults aged 20 to 24 (2011), 59.3% lived in the parental home, about the same as in 2006 (59.5%), but higher than the 41.5% who did so in 1981. For 25- to 29-year-olds, one-quarter (25.2%) lived with their parents in 2011, up slightly from 24.7% in 2006, and more than double the 11.3% share in 1981.

Young men are more likely to live at home than young women. In 2011, 46.7% of men in their twenties lived in the parental home compared to 37.9% of women in this age group. This could be because women tend to form unions at younger ages than menFootnote 4 and, therefore, leave home at an earlier age to establish their own households.

In their early twenties, 63.3% of young men lived at home in 2011, as did 55.2% of young women. For both men and women in their late twenties, the shares were lower, at 29.6% for men and 20.9% for women.

Most young adults living with their parents in 2011 had never been legally married (95.9%), although some may have returned home following the dissolution of a common-law union. An additional 2.1% had a married spouse or common-law partner also present in the home. The remaining 2.0% were widowed, divorced, separated or married with an absent spouse.

Among the provinces and territories, the highest proportion of young adults living in the parental home in 2011 was in Ontario (50.6%), up slightly from 2006 (50.2%). Newfoundland and Labrador had the largest share in 2006 (51.1%), but by 2011, this had dropped to 44.7%. The provinces with the lowest proportions of young adults living with their parents in 2011 were Saskatchewan (30.6%) and Alberta (31.4%).

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this