THUNDER BAY -- The Thunder Bay Chamber of Commerce says 1500 local jobs would be more likely to be preserved if the Ontario government extended the phase-in period for increasing the minimum wage.
The prediction follows a new report released Wednesday by a provincial business coalition that examines the benefits of raising the minimum wage to $15/hr over five years rather than in less than two years as is currently proposed.
Ontario's current minimum pay rate is $11.40/hr.
The Keep Ontario Working Coalition, which includes groups such as the Ontario Chamber of Commerce and the Retail Council of Canada, had commissioned an economic analysis earlier this year that concluded that over 185,000 jobs are at risk under the government's plan.
The new study, by the Canadian Centre for Economic Analysis, has found that extending the phase-in period by three years would decrease the jobs at risk by 74 per cent.
Charla Robinson, president of the Thunder Bay Chamber, says Thunder Bay would be "the most significantly impacted because we do have a higher percentage of folks who are in the industries that would be more affected" by an increase in the minimum wage.
Rather than 2000 local jobs being at risk under the current plan, Robinson said, 500 jobs would be in jeopardy if there were a longer phase-in.
"We think that's a really compelling argument to look at the implementation time frame. Can we achieve the results that we're looking for by slowing it down without having the unintended consequences of job loss, potential business closures, that sort of thing?" she added in an interview.
Robinson said that should labour costs increase 32 per cent in 15 months, it would be difficult for many businesses to adjust, putting the employer in the position of having to raise prices in some cases, as well as consider reducing staff or reducing staff hours.
"We really hope the government takes this into account" before proceeding with Bill 148, she said.
In addition to slowing the implementation period, Robinson said the government can "resolve the economic challenges" presented in the bill by amending the legislation and providing "offsets" to business.
