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Changes to provincial labour laws proposed today by the Ontario government -- including a $15 minimum wage -- may prove devastating for local job creation and business competitiveness, according to the Timmins Chamber of Commerce.
The Fair Workplaces, Better Jobs Act, as brought forward by Ontario Premier Kathleen Wynne, includes a range of changes to the Labour Relations Act and Employment Standards Act, and is expected to be reviewed by government committees through the summer in anticipation of being passed as legislation this fall. In a letter issued to the Premier last week in partnership with the Ontario Chamber of Commerce (OCC), the Timmins Chamber suggested these exact changes could have unintended consequences such as job losses, rising consumer costs, and economic hardship.
The letter warned that these reforms would be particularly challenging for small and medium-sized businesses, which employ 87.3 percent of Ontario residents. Among other issues, applying a flat increase to the minimum wage rather than gradual increases tied to the consumer Price Index (CPI) would remove the transparency, predictability and fairness that businesses require; this would threaten their ability to expand and maintain their workforce while increasing costs for consumers.
The potential reforms are coming at a time when the costs of doing business in Ontario is high, and stand to put Ontario at a greater competitive disadvantage. Ontario has experienced slower growth in GDP and job creation than in the past, and drastic reforms to labour and employment run the risk of causing serious damage to the future prosperity of the province, according to the letter.
“These sweeping changes could seriously impact job creation and the health of our local economy,” said Christine Bender, president of the Timmins Chamber of Commerce. “There is very real potential for the proposed changes to reduce economic opportunities in Timmins and discourage investment in Ontario. Such decisions must be based on evidence rather than politics.”
The proposed changes also include the implementation of a one-size-fits-all approach by removing all specific exemptions for certain industries and mandating a unified approach to employee scheduling, a move that would ignore the unique needs of such sectors as mining and forestry, key drivers of Timmins’ economy.
To address these concerns and protect Ontario’s businesses and its economy, the Timmins Chamber is insisting alongside the Ontario Chamber that the provincial government spend the coming months examining the economic impact of each proposed change, with an eye on implementing only those that are proven to meet certain economic thresholds, or that are offset by other economic measures. “We are urging Premier Wynne to complete an economic impact analysis of the proposed reforms to limit potential consequences that could seriously jeopardize our future growth,” said Richard Koroscil, interim president and CEO of the Ontario Chamber of Commerce. “We support reform where and when it is needed, but we caution against change for change’s sake.”
The OCC’s letter reminds the Premier that Ontario's employer community is doing its part to create a better jobs and working conditions in the province. Budget 2017 points out that 98 percent of all new jobs created since the recession have been full time, and 78 percent have had an above-average wage for their respective industries.
The letter also notes that the goals of economic growth and improved employee rights are not mutually exclusive. The OCC and the Timmins Chamber argue that supporting the competitiveness of Ontario’s economy can also help enhance the quality of work. Increased education and enforcement may assist in complying with government regulations and improving worker environments, but it is counterproductive to establish regulatory reform that significantly impedes business’ ability to grow.
Read the OCC’s previous letter to Premier Wynne at http://tinyurl.com/ONLabourConcerns
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About the Timmins Chamber of Commerce With 700 members, the Timmins Chamber of Commerce is one of the largest accredited chambers of commerce with distinction in northeastern Ontario. As the “Voice of Business in Timmins” since 1949, our advocacy and policy initiatives focus on ensuring a positive business climate in the City of Timmins.
Contact: Nick Stewart Manager of Policy, Research and Communications Timmins Chamber of Commerce (705) 360-1900 policy@timminschamber.on.ca