Canadian HR Reporter Weekly

2 Canadian HR Reporter, a Thomson Reuters business 2018 CANADIAN HR REPORTER WEEKLY BY MARCEL VANDER WIER Many cries of "Happy New Year!" in Ontario turned into chants railing against the iconic coffee chain following Tim Hortons' response to a legislated 21 per cent rise in mini- mum wage in the province. On Jan. 1, the wage jumped from $11.40 to $14 per hour — the highest in Canada — as part of a climb to $15 per hour by 2019. In response, some Tim Hortons franchisees cut paid breaks and restructured medical benefits in an effort to reduce the financial impact. is led to a public dispute between Premier Kathleen Wynne and children of the chain's co-founder, with Ontario's top politician accusing the franchisees of bullying. e province then announced it would be hiring 175 employment standards officers to ensure businesses are abiding by the new regulations. Labour organizations went on to stage rallies at various Tim Hortons coffee shops across the province, while a social media campaign urged customers to boycott the coffee chain with a #NoTimmiesTuesday. Further west, Alberta is also preparing for a bump in base pay, from $13.60 to $15 on Oct. 1, 2018, while the majority of the country's provincial minimum wage rates remain in the $11 range. New realities for employers Employers have been overwhelmed by the amount of regulatory change being ushered through Queen's Park in Toronto, said Ryan Mallough, senior policy analyst at the Canadian Federation of Independent Business (CFIB) in Toronto. "e timeline plays a huge role in it, both the minimum wage part, as well as all the new employment standards compliance parts," he said. "For us, calls (for assistance) have tripled over what they normally are at this time of year." More than half of Canadian private sector businesses have slashed hiring plans or raised prices, while some have delayed expansion plans, cut back hours or reduced employee benefits, according to a CFIB survey of 3,086 businesses in December. "(e minimum wage hike) is an election goodie that's being paid for by your local hairdresser and dry cleaner and grocer," said Mallough. "What's being realized is that these people can't afford to pay for it. ey have to make adjustments. And that's what's happening." ere's also a "culture of fear" being promoted by Wynne and Labour Minister Kevin Flynn, said Mallough, pointing to a minimum wage bully hotline set up by the Ottawa and District Labour Council's to name and shame businesses that cut benefits in response to the wage hike. "ese decisions are being made across the province," he said. "If the premier is picking a fight with anyone, it's Main Street." Options for employers Changes to compensation are never easy, but options do exist for organizations expecting blows to the bottom line, according to Christie Ferguson, a human resources con- sultant at 1 Stop HR in Ayr, Ont. "My advice wouldn't be blanket across the board," she said. "It depends on the industry, because sometimes the industry is able to be more creative than others and clamp down on different things in order to save some money without there being as much of an impact on the recruiting side or the retention side. We have some employers who are doing layoffs, or raising their prices, or looking at reducing management numbers so that they reduce a higher salary." Additional choices could include salary freezes, clamping down on overtime — for example, only permitting it if preapproved — contracting out services such as human resources, altering health benefit frameworks, or reducing workplace perks such as team- building, RRSP contributions or top-ups, said Ferguson. "ose are things you can look at. If you've got all kinds of opportunity to recruit employees… then it's No easy answers for employers facing major minimum wage hikes Tim Hortons in political crosshairs following cut to employee benefits, perks Credit: REUTERS/Mark Blinch Ontario premier Kathleen Wynne.

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