Category: Government Relations

Steering Through Change: A Handbook to Help Ontario Businesses Understand and Manage Bill 148

The Oakville Chamber of Commerce, alongside the Ontario Chamber of Commerce and management-consulting firm, MNP, have released a comprehensive handbook (Steering Through Change) to help Ontario businesses navigate the new costs and regulations associated with Bill 148, the Fair Workplaces Better Jobs Act. The handbook provides a summary of the incoming changes, outlines the potential risks to business, and identifies strategies to help mitigate the impact.

From substantial increases to the minimum wage, new scheduling provisions, reforms to the collective bargaining process and dozens of other changes, Bill 148 will present many challenges for employers.

The handbook includes important insights into the legislation and offers practical solutions and strategies to support businesses through the initial changes. As the implementation dates draw closer, employers will be able to turn to this handbook to understand the legislation and navigate change.

The handbook provides a better understanding of how to manage and plan for Bill 148, should the legislation pass. However, there is still an opportunity to provide

feedback on Bill 148 before it comes to a final vote. To date, the bill has passed the second reading and has now been referred to the Standing Committee on Finance and Economic Affairs. 

Business owners are strongly encouraged to send requests to deputize in front of the committee and send written submissions to the Standing Committee including your thoughts and concerns regarding Bill 148.

You can e-mail your submission to the following address:

Eric Rennie, Clerk
erennie@ola.org
cc:comm-financeaffairs@ola.org
416-325-3506

On November 2nd, the Ontario Chamber of Commerce and MNP LLP hosted a webinar on Bill 148 featuring an overview of Bill 148, what the implications are, and what you can do for next steps. View the presentation slides. Watch the webinar recording


Tax Wins for Small Business!

Minister of Finance Bill Morneau announced a series of revisions to the federal government’s proposed corporate tax changes as well as a reduction to the small business tax rate. This announcement is a significant win for the business community and is a result of the hard work of business owners and chambers from across the country. The fight for tax fairness and our #protectgrowth campaign is not over yet, but keep reading to see what has been accomplished so far.

Small business tax rate reduction:
The small business tax rate will be reduced from 10.5% to 9% by 2019. This was originally part of the Liberal campaign platform, but was postponed indefinitely in Budget 2016. We are pleased to see this planned reduction restored.

Lifetime Capital Gains Exemption (LCGE):
The government had planned to limit access to the LCGE as one of their three major changes to corporate taxation. This would have hurt family businesses by punishing intergenerational transfers. The government has cancelled this proposal and now says there will be no changes to the LCGE. The government has also indicated that it will ensure that the proposed tax reforms do not impede the intergenerational transfer of businesses. They have not yet provided any detail on this yet, but we will be monitoring the issue closely.

Income Splitting:
The government proposed onerous restrictions on how much family members could be paid. They said anything beyond a “reasonable” salary would be taxed at a much higher rate. The government has softened its approach, indicating that the tax reforms will only impact family members that make no “meaningful contribution” to a business. The government has also said it will simplify restrictions on income splitting. By excluding family members that make “meaningful contributions” to a business from this proposal, the government has taken a step in the right direction, but it is still not clear what exactly a “meaningful contribution” is. We are concerned that government still does not recognize the diverse contributions that family members make to a business.

Investment Income:
The government is still moving forward on rules to discourage passive investment income, but they are setting a threshold that will allow $50,000 in income per year to be exempted. That means that $1 million held inside a corporation could earn 5% ($50,000) without being subjected to the new rules. We are still calling for government to completely cancel its proposed restrictions on passive investment income, but this ‘threshold’ is an improvement from the original proposal.

What’s Next?
Although the federal government has taken some steps toward tax fairness through its reduction of the small business tax rate and revising its corporate tax proposals, there is more work to be done. The details of the government’s new proposals are still to be seen and the government has not yet conducted fulsome consultations or a comprehensive review of the tax code. That’s why we are calling for a Royal Commission to conduct a full and independent review of the tax system.

We urge you to continue to make your voice heard and contact your MP. Tell them that these revisions are a step in the right direction, but that Canada needs a Royal Commission. Make sure they hear your concerns so that Burlington can remain a fair place to do business. You can reach MP John Oliver here and MP Pam Damoff here.


Oakville Chamber and Canadian Chamber welcome revised tax reforms and lower small business tax rate, but remain concerned  

The Oakville Chamber of Commerce and Canadian Chamber of Commerce welcome the government’s plans to revise its proposed tax reforms and to reduce the small business tax rate as a result of the comments and concerns expressed through the national #ProtectGrowth campaign and in consultations.

“Oakville Chamber members are extremely concerned with the proposed changes by the federal government.  On behalf of our members the Chamber met with our local MPs Pam Damoff, MP Oakville North Burlington and John Oliver, MP Oakville.  We trust that our voices have been heard and that our local representatives will continue to advocate on behalf of their community on these critical changes that will impact Oakville businesses and the economy” said John Sawyer, President, Oakville Chamber of Commerce. 

As Canadians celebrate Small Business Week, Chamber representatives congratulate the thousands of businesspeople who joined the mobilization and made their voices heard on this important issue affecting Canadian workers and employers.

The Oakville Chamber also noted the Minister’s call for further input from Canadian businesses, and intends to continue providing a voice to ensure the tax system is simpler and less of a burden on Canada’s competitiveness.

“It is always more productive when government and business work together. We can only hope the government will listen as we provide advice on those areas where more remains to be done, and that they will propose concrete data to back up their claims. The Canadian Chamber will be working with the Oakville Chamber and other Chambers across the country for suggestions on reforms that can improve the competitiveness of Canada’s tax system. Lowering the small business tax rate is one such measure, but there is still much room for improvement,” Mr. Beatty said.  “We must ensure that Canada, and with it Oakville, remain attractive places to do business. Although there is a great deal of work to be done, today’s announcement is a positive first step, but we expect more and we will be vigilant on the next steps,” he concluded.


Comprehensive, Pro-Growth Policies Needed in 2018 Provincial Election

Ontario’s Chamber Network provides recommendations to Drive Economic Development to the Forefront of Political Discourse


Today, the Oakville Chamber of Commerce in partnership with the Ontario Chamber of Commerce released Vote Prosperity, a platform and campaign outlining the Ontario business community’s priorities for the upcoming 2018 provincial election. Vote Prosperity provides a series of proactive recommendations that all of Ontario’s political parties should adopt to ensure growth for the province’s economy.

“Small businesses are the backbone of Oakville’s economy, they support working families in our local community and across the province, and that’s why candidates from every party in every community will become familiar with Vote Prosperity,” said John Sawyer, President, Oakville Chamber. “Ontario’s business community is prepared to be bold and with Vote Prosperity we are seeking to motivate our political leaders to follow.”

In releasing the platform today, the Ontario Chamber Network will strengthen the political narrative between now and the 2018 election.
Vote Prosperity is based on four aspirational pillars for Ontario:

  1. Strengthen business competitiveness: Rising input costs, especially those costs deriving from government regulation and policy, are the most common and acute concern of the business community in Ontario.
  2. Foster Job Creation: A robust labour market consisting of good jobs is essential to prosperity for all Ontarians.
  3. Build Healthy Communities: Building strong communities through adequate and affordable housing, sustainable health care, and good infrastructure also supports business prosperity and growth, which supports those communities.
  4. Improve Government Accountability: Poor implementation of government initiatives can result in resource waste, political frustration and disruption for ordinary citizens, as demonstrated by a series of policy failures under governments of all political stripes.

“Ontario businesses have made it clear that the ever-rising costs of doing business from all levels of government has hindered their ability to prosper and grow,” said Karl Baldauf, Vice President of Policy and Government Relations and the Ontario Chamber of Commerce. “Our objective is to achieve coherent, comprehensive pro-growth policies from all political parties.  Our recommendations provide a prosperous path forward because when you vote for prosperity, Ontario wins.”

The platform provides 18 unique recommendations that will help bolster Ontario’s long-term economic future, while also addressing the pressing issues Ontario currently faces. Some of the 18 recommendations in Vote Prosperity include:

  • Reinstating scheduled reductions in the Corporate Income Tax, standardize the Business Education Tax and reduce the Employer Health Tax.
  • Conduct and publish the results for a comprehensive review of the electricity sector, including an objective economic impact analysis assessing the full range of inputs that make up the Global Adjustment (GA), and then pursue cost-reducing measures based on the results.
  • Focus on strategic growth policies by ensuring that land use planning and development regulations are aligned, to increase density and create more housing stock.
  • Create a meaningful plan to tackle the debt and more towards balanced or surplus budgets.

Over the coming months, ahead of the 2018 election, the Ontario Chamber Network will be voicing the concerns and recommendations outlined in Vote Prosperity with political parties and local MPPs and candidates. During the election, local chambers will be hosting debates where Vote Prosperity will be the primary focus of discussion.

Vote Prosperity outlines a number of current issues Ontario businesses face and includes original data from the Ontario Chamber Network’s member network. To learn more about the platform visit www.occ.ca/voteprosperity2018


Oakville Chamber of Commerce calls for infrastructure investments that support economic growth and quality of life

The Oakville Chamber of Commerce’s recommendations for infrastructure spending were supported by the Canadian Chamber network at the policy conference and Annual General Meeting (AGM) held this past weekend in Fredericton, New Brunswick.

The policy resolution, and the recommended actions contained in the resolution, will become one of a number of key priorities identified by the Canadian Chamber. It will form part of the framework for the advocacy efforts undertaken by the organization at the federal level.

The resolution which was submitted to the Canadian Chamber states that more than half of Canada’s public infrastructure, valued at $1.1 trillion, is owned by municipalities and according to the Federation of Canadian Municipalities, one third of municipal infrastructure is reported to be in fair, poor or very poor condition.

 “Infrastructure funds need to be allocated effectively and efficiently to the right types of projects. It is vital that investments are made strategically in projects that support the long-term growth of our economy” stated Ken Nevar, Chair of the Board, Oakville Chamber of Commerce.

Mr. Nevar also notes that “While most of our infrastructure challenges are the responsibility of our local government, both the federal and provincial governments have committed renewed investment to tackle our infrastructure needs.  Successful distribution of this funding will be achieved by the co-ordination, communication and collaboration of all levels of government.”

According to the Federation of Canadian Municipalities (FCM), every $1 billion invested in infrastructure generates between $1.20 billion and $1.64 billion in real GDP growth; a proven multiplier effect guaranteed to boost the economy.

Similarly, every $1 billion invested in infrastructure creates approximately 16,000 jobs which are supported for one year across multiple sectors.

The resolution prepared by the Oakville Chamber is driven by Chamber member opinion obtained through advocacy surveys which revealed that traffic congestion continues to be an obstacle for success for businesses and that infrastructure priorities need to be transportation related.



Extending Minimum Wage Implementation Will Slash Job Loss Risk by 74%: Economic Analysis

Final analysis of Bill 148 reveals $12 billion economic problem that the Ontario Government must resolve

Today, the Oakville Chamber of Commerce, in partnership with the Ontario Chamber of Commerce and the Keep Ontario Working (KOW) Coalition released two major reports that broadly capture the challenges associated with Bill 148 and the concerns of the employer community. The first report is the final economic impact analysis of Bill 148 by the Canadian Centre for Economic Analysis’ (CANCEA), which was peer-reviewed by Professor Morley Gunderson of the University of Toronto.

CANCEA’s analysis reveals that if Government were to do nothing other than implement the minimum wage increase over five years instead of in the next 15 months, jobs at risk would decrease by 74 per cent in the first two years. 

The analysis also indicates that while the proposed changes will see $11 billion in wage stimulus flow into the economy in the next two years, a remaining $12 billion problem exists which will lead to jobs lost, added costs, and general damage to the Ontario economy.

“Today’s final report by CANCEA is clear, while the Government is correct to say that there will be a stimulus from Bill 148, it does not cover the $23 billion cost challenge for business in the first two years – a substantial amount that poses great risk to our economy and cannot be resolved through offsets alone,” said Karl Baldauf, Vice President of Policy and Government Relations at the Ontario Chamber of Commerce. “More must be done. The Ontario Government must resolve the economic challenges presented in Bill 148 through a combination of slowing down the implementation period, amending the legislation, and offsets. Business and Government must work together to avoid unintended consequences and protect our most vulnerable.”

The Keep Ontario Working Coalition and CANCEA released interim findings of this Analysis in August, ahead of final amendments being submitted for first reading of the legislation. To date, CANCEA’s work remains the only peer-reviewed economic analysis of Bill 148. In having been reviewed by Morley Gunderson, the work has benefited from one of the leading economists in Canada, who the Ontario Government has turned to on multiple occasions, such as during the Changing Workplaces Review which became the foundation for Bill 148.

“Our risk assessment of the Act is that there is more risk than reward for Ontarians despite the stated goal of the legislation in helping Ontario’s more vulnerable and the Ontario economy,” Paul Smetanin, President of CANCEA. “Given the risk of consolidating income and wealth inequality, putting about 185,000 people out of work, and the risks of small/medium businesses being exposed to their larger competitors, the unintended consequences are significant.”

In addition, the Keep Ontario Working coalition released a second report, The Flip Side of “Fair”, which showcases testimonials from employers and outline how they will be impacted by the legislation. The report gives a voice to those businesses who have felt excluded from the committee process and policy discussion around this legislation. The testimonials all share a common theme, that the minimum wage increase and labour reforms will have serious consequences for their business and their communities.

“This Bill is forcing businesses to automate where possible, reduce labour/staffing, absorb part of the costs, and pass along a price increase to the customers (consumers) where possible. …The very people that you are purporting to help are the ones who are going to be hurt the most. This will be the inexperienced and/or unskilled in Ontario. As these jobs disappear, they will be pushed onto social assistance… and will remain in poverty.” – Guenther Huettlin, President and Owner at GH Manufacturing, Belleville, Ontario

The KOW Coalition will continue to advocate that the government:

  1. Consider the risks outlined in this economic impact analysis while also conducting their own analysis;
  2. Implement broad amendments to Bill 148; and,
  3. Slow down implementation to avoid unintended consequences and protect Ontario’s jobs, communities and our most vulnerable.

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The Keep Ontario Working Coalition (KOW) is a broad-spectrum group of business sector representatives concerned with sound public policy to help produce jobs and grow Ontario. For more information please visit www.keepontarioworking.ca.

Members include:

Association of Canadian Search, Employment and Staffing Services (ACSESS)

Canadian Franchise Association (CFA)

Canadian Federation of Independent Grocers

Food & Consumer Products of Canada (FCPC)

Food and Beverage Ontario (FBO)

National Association of Canada Consulting Businesses (NACCB Canada)

Ontario Restaurant, Hotel and Motel Association (ORHMA)

Ontario Chamber of Commerce (OCC)

Ontario Federation of Agriculture (OFA)

Ontario Forest Industries Association (OFIA)

Ontario Home Builders’ Association (OHBA)

Ontario Real Estate Association (OREA)

Restaurants Canada

Retail Council of Canada (RCC)

Tourism Industry Association of Ontario (TIAO)


Federal Tax Changes Could Impact Your Business: What You Need to Know

  • Do you employ family members? The government wants to scrutinize their compensation to apply a much higher tax rate on income they consider “unreasonable”.
  • Do you invest the profits from your business? The federal government is proposing to tax that income at an effective rate of 70%.
  • Do you want to pass your business on to your children? Tough new rules make it difficult for younger kids to get the capital gains exemption. They could be double taxed.

​Finance Canada is proposing the most radical tax overhaul in 50 years.  These proposed changes will have an impact on all incorporated businesses in all sectors of the economy from retailers to restaurateurs to farmers and consultants.  We are concerned that these changes will stall business growth in Canada and punish legitimate businesses.

We are asking for your help. Send an email to your Member of Parliament using these steps:

  1. Highlight and copy the sample letter below.
  2. Send a letter to MP Pam Damoff or Send a letter to John Oliver 
  3. Copy Faye Lyons, Vice President of Government Relations and Advocacy faye@oakvillechamber.com 
  4. Paste the letter below into the body of the email.
  5. Be sure to personalize the letter (everything in italics).
  6. Click “Send”

We urge the government to put these changes on hold to avoid hurting thousands of small businesses across the country and to have a broader, more thoughtful discussion regarding the measures needed to stop those who use their businesses to avoid paying taxes.

Sample Letter to MP

Subject Line: Tax Changes will Hurt Small Businesses

Dear MP Name

Over the summer, the federal Finance Department has made it clear that it intends to make the most sweeping changes to business taxes in 50 years.

From my perspective, as a business owner, I want you to know how this is going to affect my business.

(Please share your business story.)

So that you have a snapshot of my business, here’s some information:

The number of people I employ:

The type of business:

I started this business in…

My customer base is… e.g. mostly local

My supplier base is… e.g. mostly local/Canadian/etc.

Nobody supports tax evasion or loopholes. But these changes will punish legitimate businesses like mine.

I am particularly upset because this government has said it is committed to providing new opportunities for SMEs to grow. My business and many others like mine are the backbone of many communities – my community included. Our businesses employ citizens; our businesses support local initiatives – everything from soccer teams to fundraising drives for refugee families. If these changes go through, our local businesses, including mine, will no longer have the capacity for these community activities. I understand that draft legislation is in place concerning these changes.

I urge the government to put these changes on hold to avoid hurting thousands of small businesses across the country and to have a broader, thoughtful discussion regarding the measures needed to stop those who use their businesses to avoid paying taxes.

Yours truly,

Name


Business Tax Changes Are Coming – Make Your Voice Heard

Changes to Corporate Taxation: Your MPs need to hear from you! 

Last month, the Federal Government released a discussion paper on tax planning using private corporations. The proposals in this paper focus on three main areas: tax deferrals, income splitting and capital gains taxes.

The complexity and rigidity of the proposed changes will not only add to the cumulative regulatory burden facing small businesses, it will also cost small business owners thousands of dollars and discourage business investment. The government says these changes only target “the highest income earners” who have “unfair tax advantages”, but in fact this will affect hardworking, honest business owners of all income levels.


Your MPs need to hear how these proposed changes will affect businesses throughout Oakville and across Canada. Contact MP John Oliver and or MP Pam Damoff to make your voice is heard! Be sure to contact them before September 5 to make sure they’ve heard you before parliament resumes.  


“Neutralizing” Tax Deferrals 

The government wants to neutralize the “tax deferral advantage” associated with making passive investments through a private corporation. Business owners can leave income in a corporation (where it is taxed at a lower rate than personal income) so that they can reinvest that income and help their business grow. Keeping income in a corporation also allows businesses to cope with fluctuating businesses cycles. The government wants to eliminate any advantages from this practice by eliminating certain refunds and restricting eligibility for certain tax rates. These proposals stand to undermine legitimate investment practices and discourage business growth.  


Reforming Income Splitting


The Federal Government is also proposing changes to income splitting taxation. Any individual who receives split income that is determined to be unreasonable will be taxed at a higher rate. An amount would be considered unreasonable to the extent that it exceeds the average sectoral salary. This proposal neglects the unofficial functions that many individuals receiving split income perform in small businesses. For example, a spouse of a small business owner may perform several business-related tasks outside of their job title which explains their higher-than-average salary. 


Corporate Tax Reform Affects All Business Owners


Unfortunately, changes to income splitting and tax deferrals are not the only changes under consideration. The Federal Government’s sweeping proposals include additional reforms such as a restriction on the lifetime capital gains exception.

As a whole, these proposed changes would impact all Canadians who own and operate private companies, including family businesses and incorporated professionals. Ultimately, these proposals would increase the complexity of the tax rules applicable to private corporations and reverse many of the tax policies which have fostered business growth for decades. The government says they are targeting “the highest income earners” who have “unfair tax advantages”, but that is simply not true: these changes stand to affect hardworking, honest business owners of all income levels.

It is imperative your MPs hear from you directly on how these changes will affect your business before their annual Liberal caucus retreat on September 5. We encourage you to contact your MP directly with your concerns; you can reach MP John Oliver here and MP Pam Damoff here.

For more information on the proposed tax changes, contact your tax planner or contact the chamber so we can put you in touch with one of Oakville’s many professionals. 

Questions or concerns?

If you have any questions or concerns, feel free to reach out to Faye Lyons, Vice President of Government Relations & Advocacy at 905-845-6613 x 211 or faye@oakvillechamber.com .



Ontario Needs More Resilient Infrastructure to Confront Challenges of 21st Century

Report points to a $19 billion infrastructure gap which must be addressed through new accountabilities in Ontario’s Long-Term Infrastructure Plan

Today, the Oakville Chamber of Commerce, in partnership with the Ontario Chamber of Commerce, released Building Better: Setting the 2017 Ontario Infrastructure Plan Up For Success, a report calling on the Ontario Government to implement key recommendations in its imminent Long-Term Infrastructure Plan (LTIP) that will help ensure accountable planning and building resilient, adaptable infrastructure for the future.

With relatively stagnant infrastructure investment since the 1970s, the province of Ontario currently faces a significant infrastructure gap, where it would need an estimated $19 billion to improve current infrastructure alone. The gap exists because governments have not invested in upholding original infrastructure and Ontario’s harsher climate has contributed to the deterioration of the province’s infrastructure.

“Here in Oakville, and across Ontario, there is a need for significant infrastructure spending to fill the current gap –  to ensure Oakville is equipped for the future; a future that has very different infrastructure needs from the past,” said John Sawyer, President of the Oakville Chamber of Commerce. “To succeed in our constantly evolving economy, we must ensure that infrastructure dollars are spent on innovative and forward-looking projects that will grow our province’s capacity to do business and grow our economy.”

The Government’s LTIP is expected to be released this fall with stakeholders greatly anticipating its release. Ontario’s Chamber Network is contributing to the development of the LTIP by recommending that: 

  • While the Government has made significant infrastructure investments, it should bring fresh accountability methods around how infrastructure dollars are spent to ensure spending and planning are transparent;
  • Governments of all levels should confront challenges of the 21st century by ensuring planning considers how we can build infrastructure that is resilient and adaptable and deals with variables such as climate change; and that,
  • The Long-Term Infrastructure Plan must be strategic, robust, and based on long-term thinking.

“We commend the Government of Ontario for their impressive allotment of infrastructure funds; this investment in our province’s infrastructure has the potential to yield tremendous benefits for all Ontarians,” said Richard Koroscil, Interim President & CEO, Ontario Chamber of Commerce. “To ensure the Ontario government’s investments do not suffer the same fate as those of federal government, where significant funds have been committed but few projects identified, we hope the Government of Ontario will implement our recommendations, to better strengthen the province’s Long-Term Infrastructure Plan.”

“We have heard from our members about the need to invest in crucial transporation infrastructure in Oakville. In fact, the top three infrastructure priorities identified by our members in our 2016 Advocacy Survey were local roads and bridges, public parking, and transit” added Faye Lyons, Vice President of Government Relations & Advocacy, Oakville Chamber of Commerce. “This is why we are recommending the Provincial Government to adopt an outcomes-based approach to infrastructure funding with project prioritization based on clear, transparent criteria such as resulting in economic growth, efficiency, sustainability, and community benefits.”

Research shows that investment in infrastructure, such as roads, transportation, communication, utilities and more, have resulted in lowered business costs and increased labour productivity. It is estimated that for every $1 billion in infrastructure spending 16,700 jobs are supported for one year and the GDP sees a $1.14 billion increase.


Read the report.


185,000 Ontario Jobs at Risk from Bill 148: Independent Economic Impact Analysis

Bill 148 will increase the cost of consumer goods and services by $1,300 per household starting in 2018, according to new analysis by leading economics firm

Today the Keep Ontario Working Coalition (KOW), in partnership with the Ontario Chamber of Commerce and Oakville Chamber of Commerce, released the first and only independent economic impact analysis of Bill 148, the Fair Workplaces Better Jobs Act. Conducted by the Canadian Centre for Economic Analysis (CANCEA), the study revealed that if the legislation is implemented as currently drafted, there will be significant, sudden and sizable uncertainty for Ontario jobs, economy and communities.

The study concludes that these vast, unprecedented reforms will put about 185,000 jobs at risk in the first two years, greatly impacting Ontario’s most vulnerable workers.

“The changes presented in Bill 148 will have dramatic unintended consequences that include putting close to two hundred thousand jobs at risk and seeing everyday consumer goods and services increase by thousands of dollars for each jobs at risk and seeing everyday consumer goods and services increase by thousands of dollars for each and every family in Ontario,” said Karl Baldauf, Vice President of Policy and Government Relations at the Ontario Chamber of Commerce and spokesperson for the Keep Ontario Working Coalition. “We’ve run the numbers and it’s clear that this is too much, too soon. If the Ontario government chooses to proceed with these sweeping reforms too quickly, all of us will be affected, and the most vulnerable in our society chief among them.”

“Since the announcement of Bill 148, we have heard an overwhelming number of concerns raised by Oakville Chamber members over the size, and in particular, the timing of these proposed changes. They expressed their concerns over the unintended consequences of job losses due to rising costs, the inability to remain competitive, increased costs to consumers and the unfortunate reality of shutting down their business” stated John Sawyer, President of the Oakville Chamber of Commerce. “Working with the Keep Ontario Working Coalition, our goal is to address elements of the legislation where we think there is still room for negotiation, while bringing forth the evidence from this economic analysis to show the impact this will have on business and consumers.”

CANCEA was commissioned by the KOW coalition to measure the potential impacts of six key areas of change in Bill 148, including changes to minimum wages, “equal pay” provisions, vacation, scheduling, personal emergency leave (PEL) and unionization.

Data from the economic impact analysis shows:

  • $23 billion hit to business over the next two years alone
  • 185,000 Ontario jobs will be at immediate risk over the next two years
    • 30,000 of the jobs at risk are youth under 25
    • 96,000 employees at risk are expected to be women
  • 50 per cent increase to inflation for this year and the foreseeable future. The cost of everyday consumer goods and services will go up by $1,300 per household on average each and every year
  • The Ontario government would need to borrow $440 million more to cover the increases in new costs from this legislation. If the government were to provide offsets to businesses, as they have indicated, the province’s treasury will take a bigger hit
  • Municipalities will be forced to increase employee wages by $500 million without additional offsetting revenues

“Simple accounting reveals that the Act creates a $23 billion challenge for Ontario businesses over two years. Annualized, this is 21 per cent of what Ontario businesses invest in capital,” Paul Smetanin, President, CANCEA. “Given the significant, sudden and sizable changes it would be remiss to expect that unintended consequences would not follow.”

In the coming weeks and months, the KOW coalition will release additional components to the economic impact analysis.

“Given the scale of impact and pace of change, it will be impossible for the provincial government to make businesses, even small businesses, whole through offsets,” added Baldauf. “With amendments to the first reading of Bill 148 due this Wednesday, the legislation will need to see serious change including an adjusted timeline for implementation.”

Since Bill 149 was introduced in June, the KOW coalition has called on the government to conduct an economic impact analysis to fully understand how the legislation will change Ontario’s economy. With the government unwilling to do so, the report released today represents the first and only independent economic analysis of this legislation.

Read the analysis.

For more details on the economic analysis, click visit keepontarioworking.ca