PDA

View Full Version : Ontario’s $15 minimum wage will have many layers of unintended consequences



M1917 Enfield
06-14-2017, 12:28 PM
http://business.financialpost.com/executive/careers/0612-biz-hl-levittwkpl



Ontario’s $15 minimum wage will have many layers of unintended consequences


http://tu9srvbirvvtmtukd3btzwrpys5idxnpbmvzcy5maw5hbmnpyw xwb3n0lmnvbq0.g00.financialpost.com/g00/2_YnVzaW5lc3MuZmluYW5jaWFscG9zdC5jb20%3D_/TU9SRVBIRVVTMTUkaHR0cDovL3dwbWVkaWEuYnVzaW5lc3MuZm luYW5jaWFscG9zdC5jb20vMjAxNy8wNi9hdHMyMDE3MDUxNWNy MDIzLmpwZz9xdWFsaXR5PTYwJnN0cmlwPWFsbCZ3PTYyMCZpMT BjLm1hcmsuaW1hZ2UudHlwZQ%3D%3D_$/$/$/$

It is the law of unintended consequences. Or is it? In this case, the consequences will be both intended and unintended. Kathleen Wynne passed a 32 per cent increase in the Ontario minimum wage over the next 18 months to $15, with 23 per cent of it in only six months.

Of course, the full 32 per cent will only occur if the Wynne government remains in power. So the intended consequence, like the other Hail Mary passes of that wounded government, such as rent control, negative shocks to the housing market and easier unionization, is the purchase of votes in the next election, mostly from the NDP, which Liberal voters had been cratering toward.

Insofar as 25 per cent of Ontario workers are potentially affected, it is not a bad ploy. And it is not just workers earning less than $15 per hour who are affected. Other workers earning at or over that amount will require salary increases to stay above their lower income coworkers.

Minimum wages are also scheduled to increase to $15 over four years in Alberta, a 47 per cent increase. BC’s NDP government has been openly musing about the same thing. I have had one union in B.C., where my client’s workers earn just over $15, demand higher increases on the basis that they cannot be seen to accept wages just over the minimum wage.

What about the unintended consequences of this legislation? I have already had clients advising me that this move will require them to shut their doors, their thin profits leading inexorably to losses as result of the higher wages costs and without the ability to pass on those costs in higher prices.

Some clients have talked with me about relocating across the border before they go broke, taking advantage of the now lower wage costs there, a bonus being they would be closer to their customers.

Related
Ontario, Alberta labour policies are putting small business under the gun: CFIB
Wynne's Liberals know a $15 minimum wage will kill thousands of jobs but they're doing it anyway: Matthew Lau

Trump’s Buy America policy makes this more attractive. Their Canadian patriotism subordinated to the bottom line. Of course, U.S. and other foreign employers will immediately write off Ontario, Alberta and B.C. as places to setup shop. The minimum wage plus the new-easy unionization in Ontario will frighten off even the most stalwart.

Other employers will stay afloat by automation or by making do with fewer employees, resulting in layoffs and extra work for those few lucky enough to keep their jobs. So much for protecting “vulnerable workers” as the Wynne government proudly described the change. The number of truly vulnerable workers will increase as employers avoid hiring and turn increasingly to contract workers.

Past minimum wage increases have disproportionately impacted teen unemployment, thereby both depriving them of a stepping stone into work skills and marketability and ending their financial contribution to lower income families And, of course, there is the impact on our EI and welfare systems.

Businesses in trouble will have to compensate for the higher wages at their lowest end by preserving salary costs through lower bonuses or lower wage increases for higher earners. ‎The reality is that government policy, and in particular this one, does not increase employers’ ability to pay.

What impact will this increase have on young workers trying to get their foot in the door, to obtain valuable experience, or older workers attempting to re-engage in the workplace?

When these unintended consequences occur, as they inevitably will, it may have one other unintended consequence — a backlash against the governments by the very people whose votes they intended to garner.

Howard Levitt is senior partner of Levitt LLP, employment and labour lawyers. He practises employment law in eight provinces. Employment Law Hour with Howard Levitt airs Sundays at 1 p.m. on Newstalk 1010 in Toronto.

Billythreefeathers
06-14-2017, 12:39 PM
$15 an hour = your now unemployed, replaced by;

http://i1176.photobucket.com/albums/x339/Billythreefeathers/mcdonalds_zpsgbzr4sxc.jpeg (http://s1176.photobucket.com/user/Billythreefeathers/media/mcdonalds_zpsgbzr4sxc.jpeg.html)

M1917 Enfield
06-14-2017, 01:02 PM
http://watchdog.org/wp-content/blogs.dir/1/files/2016/05/shutterstock_342731168.jpg

http://img2.thejournal.ie/article/1373933/river?version=1374137&width=1340

https://touchblog.ru/wp-content/uploads/2014/12/elite-daily-iPad-kiosk-mcdonalds.jpg

http://2.bp.blogspot.com/-lePN7hJJohM/UqEdRcOFXKI/AAAAAAAAsaY/RPNzOyZJnzY/s1600/self-checkout.jpg

https://futurism.com/wp-content/uploads/2017/03/Meet_Flippy_a_burger_grilling_robot_from_Miso_Robo tics_and_CaliBurger-600x315.jpg

https://i.ytimg.com/vi/tcx7YJk2PYs/maxresdefault.jpg

https://www.packworld.com/sites/default/files/styles/lightbox/public/images/issues/04_11/Features/IPS_Bild-5_0904.jpg?itok=sQpV6F9A

http://www.schubert-packaging-systems.de/files/media/Fallstudien/Fallstudie_Kepak_Hamburger/Bild_4.jpg

http://www.packworld.com/sites/default/files/styles/lightbox/public/robots_trolli1.jpg?itok=wccgfNxl

RangeBob
06-14-2017, 01:09 PM
http://www.packworld.com/sites/default/files/styles/lightbox/public/robots_trolli1.jpg?itok=wccgfNxl
I don't think that last one is actually a burger. I think that's candy called a 'gummi-burger'.
A gummi-burger comes with burger shaped candies in the form of the bun, the cheese and lettuce, and the burger and bun.

e.g.
https://www.amazon.ca/dp/B000NMI78W

and
http://cdn1.bigcommerce.com/server4000/1970e/products/392/images/1183/miniburger__97999.1357514051.500.500.jpg?c=2

M1917 Enfield
06-14-2017, 01:26 PM
I don't think that last one is actually a burger. I think that's candy called a 'gummi-burger'.
A gummi-burger comes with burger shaped candies in the form of the bun, the cheese and lettuce, and the burger and bun.

e.g.
https://www.amazon.ca/dp/B000NMI78W

and
http://cdn1.bigcommerce.com/server4000/1970e/products/392/images/1183/miniburger__97999.1357514051.500.500.jpg?c=2

I used it more to show how human job taking automated machines are now capable of assembling meals without minimum wage human workers involvement in the process!

DBenn
06-14-2017, 06:33 PM
Same BS was said when the minimum wage went up to $1.25 an hour. :)

DBenn
06-14-2017, 06:36 PM
As for Automation it will continue to expand and evolve because people are unreliable and cause no end of trouble for the employer. :smash:;D

firemachine69
06-15-2017, 05:48 PM
Same BS was said when the minimum wage went up to $1.25 an hour. :)


And automation did go up. Recall at one point there was no such thing as a jumbo excavator, it was literally hundreds of guys with shovels.

Swampdonkey
06-15-2017, 08:24 PM
As for Automation it will continue to expand and evolve because people are unreliable and cause no end of trouble for the employer. :smash:;D

It very much is a competition between grunts on one side, and machinery on the other.

If my wife's Chevy breaks down one more time, I'm leasing a rickshaw.