The minimum wage for workers in Ontario has been raised almost 7% to $16.55 from $15.50, sparking much debate over inflation and living and business costs. .Some say the increase, implemented October 1, is still not a sufficiently livable wage; others worry about the impact of inflation and the rising cost to small businesses. .The announcement was first made in March with the intent to give small businesses a chance to prepare. .The CBC said “the increase is tied to inflation.” .David Piccini, Minister of Labour, Immigration, Training and Skills Development, issued a statement on the minimum wage increasing and the passage of the Working for Workers Act, 2023. .“Starting Sunday, October 1, Ontario’s minimum wage will increase from $15.50 to $16.55 per hour, helping more than 900,000 hard-working men and women across our province earn more take-home pay for themselves and their families,” the statement reads..“This 6.8 per cent raise means up to $2,200 more in workers’ pockets every year and brings Ontario to one of the highest minimum wages in the country.”.Premier Doug Ford declined to raise the wage from $14 to $15 per hour in 2018, but raised it to $15 in January 2022, which CBC attributed also to “increases to inflation.”.Several workers advocacy groups have said the province isn’t doing enough and the minimum wage should be even higher. .Craig Pickthorne of The Ontario Living Wage Network stated $23 an hour is a more appropriate wage to live off of in the Greater Toronto Area (GTA) and that Ontario should raise the minimum wage to at least $20 an hour. .“In the GTA, our living wage is $23.15,” he said. “That means if you are working full-time minimum wage, even after this increase, you're still short $230 a week of being able to pay your bills being able to make ends meet.”.Randy Robinson, Ontario director of the Canadian Centre for Policy Alternatives, also said the increase is insufficient for the cost of living in the GTA. .“The living wage across Ontario right now is about $20,” he told CBC. “In the Greater Toronto Area, it's more like 23. $16.55, is nowhere near what you need to be making.”.Deena Ladd, executive director of the Workers' Action Centre in Toronto, criticized the low number and said people are “struggling to survive.”.“Part of what we're also seeing right now in terms of people struggling to survive is the fact that the minimum wage should have actually been closer to 18 dollars right now," Ladd said..While some are worried about the wage hike not cutting it in peoples’ bankbooks, others have expressed concern over who will be left shouldering the extra costs. .Michael Wood, small business advocate, said it will probably be the customer who pays the price. .“Businesses might put it back into the price of the product, back into the price of the service, and we will be back in square one," he said as per CTV. .Yet, The Canadian Federation of Independent Business (CFIB) said otherwise back in March when the increase was first announced. .“Inflation continues to drive up costs for everyone and that includes Ontario’s small businesses,” the CFIB wrote on their website. “Small firms don’t have the wiggle room that larger businesses do to absorb higher costs, especially at this vulnerable, post-pandemic time.”.“Our members have told us that passing on new costs to customers is not an option. If they can’t afford to absorb today’s announced $1.05 minimum wage increase, they’ll be forced to make tough decisions, such as reducing employee hours, foregoing job-creating expansions, or turning down projects and other business opportunities.”.In contrast, the minimum wage for California fast food workers has been raised to US$20 per hour (CAD$27.32) as per the Associated Press.
