THUNDER BAY -- A business federation says a proposed provincial pension plan is bad for everybody.
The Ontario Retirement Pension Plan would see employers and workers contribute up to 1.9 per cent on an employees salary every year. The province says people aren't saving enough and that the Canadian Pension Plan alone won't help when people retire.
Canadian Independent Federation of Business president Dan Kelly said it's bad for business.
"It will slam small business with giant increases in the taxes that they pay," he said in Thunder Bay Thursday before speaking to a room of business owners at the Nor'Wester.
"Many of them are saying that they re going to have to reduce hours, reduce wage levels and a good chunk of our members, over a third of our members, say they're going to have to layoff staff."
Kelly said workers will have to pay more too, leaving less money for rent, food and other essentials. There are much better ways to get people to save, like the federal government's optional pooled plan.
"We much prefer voluntary savings vehicles," he said.
Kelly said the federation is also presenting the results of a survey they did with all four major federal party leaders for the upcoming election.
He said the best news for business coming out of the survey is that all parties agree that the small business corporate tax rate should be cut form 11 per cent to nine.
