Tag: Keep Ontario Working

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)


Minimum Wage Increase & Proposed Labour Reform: Advocacy and Policy Update

The Oakville Chamber of Commerce shares the desire for broadly inclusive growth, where everyone has the opportunity to obtain a living wage. However, in order to achieve this, we need to ensure that we are not risking job losses, rising consumer costs, and economic hardship as a result of over-regulation.

Thank you to all of our members who have shared their comments regarding the proposed new labour reforms including the minimum wage increase to $15.00 in the next 18 months. We have heard you and we will continue to focus our advocacy efforts on your behalf.

In the past few weeks, the Oakville Chamber has met with the Minister of Labour, our local MPP Kevin Flynn, to share our members’ thoughts on the unintended consequences of the proposed changes. Namely, job losses due to rising costs, the inability to remain competitive, the possibility of shutting down local employers and increased costs to consumers. We are working with our local Business Improvement Areas (BIAs) and combining our efforts to communicate our concerns related to the reforms and in particular, the pace at which these changes are scheduled to occur.

To that end, the Oakville Chamber is working with the Keep Ontario Working (KOW) group, a coalition of Ontario’s leading industry and sector associations as well as major employers. KOW brings together divergent voices to strengthen our collective advocacy. Our goal will be to address elements of the legislation where we think there is still room for negotiation, while bringing evidence to the table to support the notion of a broader package of offsets to help the business community transition into these new changes. The KOW website has been updated with new content and calls to action. You can visit it at www.KeepOntarioWorking.ca

We encourage you to submit a letter to our local MPP’s through the Coalition’s website (to submit a letter, click here). Please take the time to share your stories with Minister Kevin Flynn and continue to send us your emails. Your voice matters.


Ontario Deserves Evidence-Based Reform: Statement on Ontario’s Fair Workplaces Plan

Changes Will Hurt Job Creation, Consumer Costs and Economic Growth

The Keep Ontario Working coalition, in partnership with the Ontario Chamber of Commerce and Ontario Chamber Network, expressed concern that the Government of Ontario’s Fair Workplaces and Better Jobs Plan, commits to unproven sweeping reforms without ensuring protection against unintended consequences, including job losses, rising consumer costs and economic hardship.

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. As noted in the Business Prosperity Index of the Ontario Chamber of Commerce’s 2017 Ontario Economic Report, despite projections that Ontario will lead Canada in economic growth in the coming years, diminished profitability, lower labour market participation, and sluggish market activity; along with other key factors have resulted in a risk-averse atmosphere that businesses are disinclined to grow production. Businesses are questioning if they should grow in Ontario or expand offshore. Despite that, Ontario’s private sector is still doing its part to support workers. As the Government pointed out in Budget 2017, 98 per cent of all new jobs since the recession in Ontario have been full time, and 78 per cent in above-average wage industries. This positive economic activity by Ontario’s private sector demonstrates a clear commitment to good jobs throughout our province.

OCC AND KEEP ONTARIO WORKING STATEMENT

The following is a statement by the Keep Ontario Working Coalition on the Government’s proposed workplace reforms:

We share in the Government’s desire for broadly inclusive growth. However, in order to achieve this, we need to ensure that we are not risking job losses, rising consumer costs, and economic hardship as a result of over-regulation. “Government cannot regulate prosperity. To demonstrate true fairness and compassion for workers, we must ensure Ontario has a strong economy to help create jobs and increase economic growth. “That is why we are urging the government to take time this summer to have an independent third party conduct a comprehensive economic impact analysis on the proposed reforms to consider the unintended consequences to employers. In addition, as the province’s biggest employer, the government must fully understand what these changes will cost in relation to the provincial treasury as well as social services and other government agencies. “Why is evidence-based policy important? Only three years ago, the Premier’s own Minimum Wage Advisory Panel conducted extensive research and concluded: ‘In the Canadian context, researchers have generally found an adverse employment effect of raising minimum wages especially for young workers…typically those studies find that teen employment would drop by 3 to 6 per cent if the minimum wage is raised by 10 per cent.’ “While the Changing Workplaces Review cautioned that any regulatory change shouldn’t impair the competitiveness of businesses in the province, the reforms outlined in Fair Workplaces and Better Jobs Plan thus far do not provide the balance needed to help ensure a competitive environment for Ontario. “But we have time. Now we must work cooperatively with government to identify the scale of the economic impact of these changes and help employers transition into any new policy regime. We will continue to be cooperative partners with government to find solutions that will, where possible, inhibit negative impacts on the growth of Ontario’s economy, our people, and our communities.”

Ontario’s Employers Caution Government on Changing Workplaces Review: “You Can’t Legislate Prosperity”

Keep Ontario Working Group of Leading Ontario Employers Urge Government to Proceed with Evidence-Based Policy Modernization Through the Changing Workplace Review Keep Ontario Working (KOW), a group of Ontario’s leading employers, industry and sector associations submitted its final set of recommendations to the Special Advisors of the Changing Workplaces Review (CWR). While the group acknowledges that work is changing and that labour and employment legislation should be modernized, they caution that employers and employees alike cannot risk public policy changes that would place an unintended burden on them. “The Changing Workplaces Review interim report of the Special Advisors is a large document that contains hundreds of options to the legislation that guides Ontario’s workplaces. The options laid out and that are presently being considered by the Special Advisors will impact nearly every aspect of the relationship between employers and employees, as well as the ability of Ontario businesses to create jobs and grow the economy” stated John Sawyer, President of the Oakville Chamber of Commerce.” In light of these concerns, the Keep Ontario Working group has developed several key policy options in their submission calling for evidence-based workplace modernization, with a particular focus of caution in the following areas: Education and Enforcement, Scheduling Provisions, Labour Certification Rules, Sector Exemptions, Joint/Common Employers, Sectoral Bargaining, and Minimum Standards. As part of their submission, the Keep Ontario Working group commissioned Philip Cross, Executive Fellow with the School of Public Policy at the University of Calgary and former Chief Economic Analyst at Statistics Canada, to analyze the issue of precarity. Cross’ analysis indicates that by several metrics, the concern around precariousness is overstated. For example, part-time employment in Ontario and Canada shrank in 2015 as compared to 25 years ago. Data also indicates that at no time in Ontario’s recent history have employees in this province enjoyed such stable employment; the average employee in Ontario has worked for the same employer for a record 106.3 months (or nearly 9 years). Currently there is insufficient data to support major reforms to labour legislation. The group has called on government to strengthen their data by developing and releasing a new regional survey. This type of data would help to identify the real gaps existing in employment legislation. The group cautions government against making sweeping amendments to legislation without sufficient statistical and economic data as it could result in unintended consequences and negatively impact the ability of Ontario’s businesses to create jobs and grow the economy. “We support the Government’s efforts to address the challenge of precarious work, but we think it’s critical that there be a robust, evidence-based, and common understanding of who Ontario’s precarious workers are and how we can best help them” stated John Sawyer. “Our goal as part of the Keep Ontario Working Group is to increase employee experience and their ability to realize more income, without introducing new regulatory burdens that will compromise the ability of Ontario employers to create jobs and grow the economy” added Faye Lyons, Vice President of Government Relations & Advocacy at the Oakville Chamber. “What we do want is for the government to enhance enforcement of the existing legislation so that those employers who abuse their employees are held to their responsibilities under the existing legislation.” Read the full report: Reform That Works For more information on the Keep Ontario Working initiative, visit www.KeepOntarioWorking.ca. For employers who wish to provide their input to the Oakville Chamber of Commerce, please contact Faye Lyons, Vice President of Government Relations & Advocacy at faye@oakvillechamber.com or at (905) 464-0659.   About “Keep Ontario Working” Keep Ontario Working is an initiative of the leading employer and sector associations in the province, who are working together to motivate employers and employees alike to take a more active interest in the Changing Workplaces Review. Our goal is to ensure that we are improving legislation to support workers’ rights, create jobs and grow the economy. Members of the initiative include: o   Ontario Chamber of Commerce o   Canadian Franchise Association o   Restaurants Canada o   Retail Council of Canada o   Ontario Restaurant, Hotel & Motel Association o   Food & Beverage Ontario o   Ontario Forest Industries Association o   Association of Canadian Search, Employment and Staffing Services, o   National Association of Canadian Consulting Businesses o   Other employers and employer groups.