An example of why a high minimum wage is counterproductive courtesy of Renee

[Anonymous]

Ontario Premier Kathleen Wynne's plan to increase minimum wage to $15 an hour by 2019 may come as a welcome surprise to workers across the province, but businesses that already have thin margins may see it as an opportunity to eliminate jobs.



Karl Baldauf, vice president of policy and government relations for the Ontario Chamber of Commerce, said the increase to minimum wage could hurt young workers more than help them.





"Only three years ago the premier's own minimum wage panel found that through research of Canadian examples every time you increase the minimum wage by 10 per cent it has the reverse impact of lowering youth employment by six per cent," he said.



"It's all well and good to hear these kinds of reforms, but unless you're proceeding in a way that's evidence-based, you're making all of us vulnerable including those who are vulnerably employed who you're seeking to help — and that's why we've asked the government to proceed with caution."





Baldauf said there is still time for the government to conduct more independent economic analyses on the major changes to Ontario's workforce before it is introduced this week with second reading in the fall.



"The plan in place is to increase minimum wage by almost 25 per cent in a seven-month timeline. Ask businesses how they're going to prepare for that," he said.



"It's going to put a lot of businesses, especially small businesses with very thin profit margins, in jeopardy — and that's unacceptable. We need to ensure that we are enabling prosperity for all, that's what fairness looks like, and what we're seeing today does not reflect that."

http://globalnews.ca/news/3488559/who-wins-and-who-loses-in-ontarios-decision-to-raise-minimum-wage-to-15-an-hour/">http://globalnews.ca/news/3488559/who-w ... 5-an-hour/">http://globalnews.ca/news/3488559/who-wins-and-who-loses-in-ontarios-decision-to-raise-minimum-wage-to-15-an-hour/



I am very skeptical about this. The kind of jobs that pay minimum wage are disappearing. We also know that raising minimum wage does not really put more money into the economy as employers don't spend more on payrolls. They must have productivity gains, ie reduced hours/manpower. Besides, this increase is just too quick. It's an election gimmick from the most unpopular government in the country.