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OAYECPositioning Bulletin

The OAYEC Positioning Bulletin shares OAYEC's positions, values or discussion items related to the youth employment sector, and is available the first Monday of every month.




TOPIC for March 5th, 2007:

A Raise in the Minimum Wage to $10/hour? To be or not to be?

 

Raise in Minimum Wage

The Bill to raise the minimum wage to $10 was introduced by New Democrat MPP Cheri DiNovo, who represents the riding of Parkdale-High Park, in Toronto. There has been debate on the content of this Bill. Many people are opposed, citing that a $10 raise in the minimum wage is not necessarily positive and will lead to an increase in inflation. Others are in support for the raise and affirm that this is a positive proposition which will lead to the establishment of a livable wage for the population of Ontario as a whole. This month’s bulletin is an opportunity to explore this issue. OAYEC is providing our members with materials to make an informed decision about whether or not there should be support to increase the minimum wage.

 

Pros, Cons and Neutrals

PROS

  • A raise in the minimum wage will increase the standard of living for those individuals who are supporting themselves and their families on a minimum wage salary
  • There will be an increase in supplementary income for youth
  • Because a raise in the minimum wage may be negative for small businesses this may create a sense of urgency for businesses, which could result in their success
  • Higher wages means higher tax revenue for governments
  • Few jobs will be lost, since most employers paying minimum wage are getting by on the least staff possible already

CONS

  • Fewer youth may be hired, because employers will be looking for ways to keep labour costs from rising
  • Will effect marginal employers who would struggle to pay a $10 minimum wage
  • Marginal employers may make other cuts, such as benefits, working conditions, etc. in order to afford to pay higher wages
  • Jobs in Ontario might move to other provinces. Or out of country particularly in high labour cost industries

NEUTRALS

  • There is more to employing at risk youth than minimum wage
  • OAYEC supports a holistic intervention which encourages more flexibility in government programs to provide the needed support that will help youth get and keep jobs (eg. Extended health, eye care and dental)
  • Most young people who need a job to live independently do not settle for minimum wage jobs

 

The Advocates Perspective

A Million Reasons to Raise the Minimum Wage

Over one million people in Ontario earn less than $10 an hour, working in jobs where they are underpaid and undervalued. Most low-wage jobs are not found insmall business - instead they are with retail giants, fast food chains, or tempagencies. Why should wealthy companies be allowed to pay poverty wages? The fact is that if minimum wage had kept up with inflation, it would be $10 today. The Toronto & York Region Labour Council has joined with community groups and the student movement to launch a major campaign in support of MPP Cheri DiNovo's Bill 150, to raise Ontario's minimum wage to $10. Send a message to the Premier and your MPP by going to www.forthepublicgood.ca/takeaction3.cfm. And please, pass on this message to everyone on your contact list. To find out more visit www.amillionreasons.ca.

 

How can you be involved?

We encourage our members to reflect on these possibilities and make an informed decision. If you would like to see the minimum wage raised please support the Toronto and York Region Labour Council campaign and send a message to the Premier and you MPP by accessing the weblink listed in the section above.

 

For more information, please contact:

Soni Dasmohapatra
sdasmohapatra@oayec.org

 

OAYECThe GO TO organization for youth employment issues.

The OAYEC Positioning Bulletin is a monthly newsletter provided by the Ontario Association of Youth Employment Centres. OAYEC's mission is to support and advocate for a sustainable youth employment delivery network.

Feedback, comments, and suggestions for future Positioning Bulletins are welcome!
Contact: Soni Dasmohapatra, Researcher, sdasmohapatra@oayec.org

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