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Canadian HR Reporter, a Thomson Reuters business 2018
News CPR
|
February 2018
No easy answers for employers
facing major minimum wage hikes
Tim Hortons in political crosshairs following cut to employee benefits, perks
BY MARCEL VANDER WIER
MANY CRIES of "Happy New
Year!" in Ontario turned into
chants railing against the coun-
try's iconic coffee chain follow-
ing Tim Hortons' response to
a legislated 21 per cent rise in
minimum wage in the province.
On Jan. 1, the rate 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.
This led to a public dispute be-
tween Premier Kathleen Wynne
and children of the chain's co-
founder, with Ontario's top poli-
tician accusing the franchisees
of bullying. The province then
announced it would be hiring
175 employment standards of-
ficers 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 over-
whelmed by the amount of reg-
ulatory change being ushered
through Queen's Park in Toron-
to, said Ryan Mallough, senior
policy analyst at the Canadian
Federation of Independent Busi-
ness (CFIB) in Toronto.
"The timeline plays a huge
role in it, both the minimum
wage part, as well as all the new
employment standards compli-
ance 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.
"(The 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 real-
ized is that these people can't
afford to pay for it. They have to
make adjustments. And that's
what's happening."
There'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 bene-
fits in response to the wage hike.
"These decisions are being
made across the province," he
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