Ontario Minimum Wage Increases
Premier Dalton McGuinty Criticized for Suggesting Delay
The Premier raised questions last week about the increase. He suggested at a meeting in Ottawa that next year’s increase could be subject to delay. He cited the current economic problems as a possible reason. Finance Minister Dwight Duncan, who responded to questions about the controversy, said that at this time the government is concentrating on the over-all economic and employment picture.
Ontario Minimum Wage Increases Planned
Ontario’s minimum wage rate was not increased by the previous government for nine years. For that reason, the McGuinty government decided to phase in increases beginning in 2004. The belief was that the plan would balance the needs of Ontario’s businesses and its low-income workers.
In 2007, the provincial Liberal Government set out a long-term plan to increase the minimum wage. The scheduled seventy-five cent increase becomes effective March 31, 2009. That would raise the lowest-paid workers to an hourly rate of $9.50. As part of its plan, the government pledged to increase the general minimum wage to $10.25 per hour in 2010.
Premier McGuinty Criticized for Suggesting Delayed Increase
According to the Canadian Broadcasting Corporation, New Democratic Party leader Andrea Horwath commented after learning of the premier’s remarks, “When tens of thousands of Ontario families are losing their jobs or working two or three jobs just to make ends meet, now is exactly the wrong time to be stalling and postponing a raise in the minimum wage".
The government was subjected to blistering criticism from anti-poverty groups and other social activists. They believed that a promise was about to be broken and that they had been betrayed.
Ontario Premier’s Announcement
As reported in the Toronto Star, Premier McGuinty announced later that the government would continue with its planned minimum wage increases. "The fact is, it does call for some clarification on my part and I take responsibility for muddying the waters", the premier said in response to a question from NDP Leader Andrea Horwath during question period in the Ontario Legislature.
"When we talk about the minimum wage, we have to ask ourselves what it is that we owe both our workers and employers. I think clearly we owe them fairness", he said. "Our commitment was to get the $10.25 an hour one year from now and we will honour that commitment."
Interim Progressive Conservative Leader Bob Runciman questioned McGuinty’s competency and complained that the government is “not consulting” on anything.
Minimum Wage Debated
The matter of minimum wage has been debated for many years. The question always arises – does it cost jobs or reduce poverty? Many business people are against such increases and state that they lead to fewer jobs. Anti-poverty advocates believe that companies will provide better training for workers who are earning more. With that training, the workers will become valuable employees.
Sources:
Canadian Broadcasting Corporation
Ontario Premier Dalton McGuinty
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