blog




  • Essay / Canadian Minimum Wage Review

    We are a group of concerned first-year students from the University of Guelph-Humber, writing to discuss the current minimum wage situation in Canada. The current minimum wage offered to Canadian citizens is not sustainable for living efficiently. The cost of living, inflation and reductions in hours negatively affect the population. These factors create barriers that prevent those living on minimum wage from making ends meet and supporting themselves or their families. As university students, we see our fellow citizens struggle in the media, on the streets, and in our personal lives. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayBackground/Research: November 22; Shortly after Premier Wynne's government announced plans to raise Ontario's minimum wage, Ontario legislation passed Bill 148, the Fair Workplaces, Better Jobs Act . This has forced employers to implement significant changes in the workplace. Including, the increase in the minimum hourly wage, in effect as of January 1, which will be: fourteen dollars, thirteen dollars and fifteen cents for students and twelve dollars and twenty cents for alcohol servers (Government of Ontario, 2018). Unfortunately, this change has proven to be detrimental to the citizens of Ontario. This is evident as it contributed to approximately fifty-nine thousand job losses in two thousand and eighteen (StateCan, 2018), and it is estimated that this number will continue to grow, resulting in approximately sixty thousand job losses by two thousand and nineteen. (Canadian Press, 2018). Furthermore, increasing wages leads to negative economic consequences. Especially; inflation, recognized as harmful to both consumers and businesses. Additionally, approximately sixty percent of minimum wage workers are youth workers (ages fifteen to twenty-four). However, rising wages have led to a dramatic decline in youth employment rates. Having less experience and being more vulnerable makes it easy for companies to let go of these workers. This is unreasonable because students often need minimum wage jobs to be able to finance their education. Therefore, this change has proven and will continue to prove detrimental to Ontarians. Before that, the minimum wage was: eleven dollars and forty cents, ten dollars and seventy cents for students and nine dollars and ninety cents for liquor servers. This suggests that there has been a thirty-two percent increase in wages in twenty-eighteen. With this change implemented, Ontario has reached its all-time high. Additionally, among the ten provinces and three territories, Ontario has the highest minimum wage, with Alberta at thirteen dollars and sixty cents and the Northwest Territories at thirteen dollars and thirty-six cents (Payworks Canada , 2018). Ultimately, Ontario's new policy puts the quality of life of its citizens at risk. This is evident in that increasing the hourly minimum wage has created and will continue to create more problems than it can solve. Thus, changes should be developed and implemented for a better future. Current Status: On November twenty-second, two thousand and seventeen, the Ontario government passed the Fair Workplaces, Better Jobs Act. As Ontario's economy grows, the government has chosen to focus on how it can grow alongside it. Regarding the laws, Ontario has decidedto improve workplace bills. A widely discussed problem would be the increase and/or decrease in the minimum wage. Before the law was passed, the minimum wage in Ontario was eleven dollars and forty cents an hour. A barely sustainable income for many Ontario citizens. Since then, the general minimum wage has increased to fourteen dollars an hour as of January first, two thousand and eighteen. As a follow-up, on January first, two thousand and eighteen, the minimum wage will then be increased by another dollar, to fifteen dollars an hour. While alcohol servers still receive a minimum wage of twelve dollars and twenty cents an hour. This doesn't coincide with how little they tip. According to new Ontario Premier Doug Ford, he is considering freezing the minimum wage at fourteen dollars, ending Ontario's one-dollar minimum wage increase in January. (Government of Ontario, 2018) Key Considerations: Low income can lead to many troubling situations. Living conditions can become crucial as low income can be linked to poor nutrition, poor housing and poor mental health. Citizens maintaining a low income show a sharp decline in their health, whether they work part-time or full-time. To cover rent or any other consequential costs, one must provide for other daily amenities such as meals. Cutting back on meals can only cause poor nutrition without a cure. Fortunately, as citizens we benefit from a universal healthcare system, but what if they need other expensive remedies like medications? When it comes to Toronto's real estate market, costs are not minimum wage friendly. According to the Urbanization Research Society, rent in Toronto averages around two thousand dollars per month, making Ontario one of the most expensive provinces to live in. The average full-time worker in Toronto earns just two thousand dollars, with an average of just over a thousand dollars. dollar mark. Leaving Ontario citizens with overdue rent or debt in hopes of making ends meet. Mental health has become a widely discussed issue in Ontario. How come the statistics for people suffering from mental health issues are still so high? Yes, there are many other factors that explain why so many people suffer from mental illness. However, much of this problem is due to low income. The feeling of not being able to feed your children, of not being able to pay next month's rent, etc. can make people feel worthless. This feeling will only trigger depression and other serious mental illnesses. Other Jurisdictions: A look at surrounding provinces and their efforts to tackle the current problem provides additional perspective on the situation. Minimum wage rates vary from province to province, ranging from ten dollars and fifty cents to fifteen dollars an hour. Like Ontario, many provinces have followed suit by guaranteeing a minimum wage set at a respectable rate to help maintain living conditions. However, three provinces in particular have taken additional measures to stabilize the cost of living, in their respective regions, for households who live mainly on the minimum wage. In the Maritime provinces, Nova Scotia is planning its path to sustainability by allowing many employers to pay their employees based on the work they produce rather than the minimum wage. This agreement is entitled Piece Work (Government of Nova Scotia,2017). Setting the minimum wage standard at ten dollars and fifty cents ensures that every employee performing the bare minimum will still not receive a lower wage. All minimum wage employees are entitled to a similar payment if the production of their work results in a higher wage (Government of Nova Scotia, 2017). On the Prairies, Alberta's method of maintaining living standards involves raising the minimum wage alongside cutting business taxes. The approach taken helps low-income earners while providing small businesses the ability to thrive. Not only will small business taxes be reduced from three percent to two percent, but support programs will also be put in place to meet the needs of these businesses (Government of Alberta, 2018). The Government of Alberta states that thirty-four billion dollars will be dedicated to infrastructure support for families and businesses (Government of Alberta, 2018). The Summer Temporary Employment Program, also known as STEP, will be reinstated and will involve more force helping employers with additional funding when hiring secondary and post-secondary students (Government of Alberta, 2018). This program further provides employed students with a springboard to acquire the skills necessary for their future endeavors. The Western region of Canada is known for being one of the most expensive provinces to live in. British Columbia addresses minimum wage challenges by introducing the Fair Wages Commission (Government of British Columbia, 2018). This approach uses a ladder method that slowly increases minimum wage rates each year; aiming to reach fifteen dollars and twenty cents from two thousand twenty-one. The living wage is the ideal income that two members of a household should earn to achieve their standard of living. According to the BC government, four small wage increases, over a four-year period, will close the significant gap between the minimum wage and the living wage. Of those earning minimum wage in this province, sixty-two percent are women looking to earn additional income for their families (Government of British Columbia, 2018). The slow increase, much like Alberta's approach, allows businesses and employees to keep pace and adapt to change over a period of time. Options: Raising the minimum wage seems like a good idea, until the community starts losing money and the economy recovers. disturbed. For example, raising the minimum wage increases secondary school dropout rates because children do not need to go to school if they think they earn enough to get by, creating a less educated generation (Doyle, 2018). However, children dropping out of school have not taken into account the inflation that comes with the increase in the minimum wage. Groceries, property taxes, bills, cars; prices will all increase. Raising the minimum wage will also incentivize employers to reduce hours and benefits (Bouw, 2018). Employers will also rely on technology to do the job, rather than hiring employees (for example, in factory work, the employer might invest money in a better machine rather than hiring a new employee). The increase in the minimum wage will also influence employers. use international labor where the minimum wage is lower or non-existent. International labor will come from third world countries, where factory workers will be much less.