TORONTO, May 15, 2014 /CNW/ - The NDP's policy to counter a 9.1 per cent
minimum wage increase with a 1.5 per cent cut to the small business tax
doesn't add up for the province's largest employer of youth and first
"The NDP claims that the cut to the small business tax will counteract
the added labour cost," said James Rilett, Ontario Vice President of
Restaurants Canada, an industry association representing foodservice
owners and operators. "The reality is that it doesn't even come
The cascading effect of a $1 per hour increase to minimum wage will
cause the average restaurant's labour cost to increase by $11, 700 per
year. The net effect of a 1.5 per cent cut to the small business tax
is a savings of $262, for a net cost to a small business of $11, 525.
"It is impossible for a small business to make up for these additional
costs without raising prices or cutting back hours," said Rilett.
22 per cent of Canadians had their first job in the restaurant
business—highest of any industry
1 in 5 young people between the ages of 15 and 24 are employed in the
Ontario youth unemployment rate ranges between 16 and 17.1 per cent,
among the worst in the country
Labour accounts for 30 per cent of a restaurant's expenses.
Restaurants Canada (formerly the Canadian Restaurant and Foodservices
Association) is a national association comprising 30,000 businesses in
every segment of the foodservice industry, including restaurants, bars,
caterers, institutions and their suppliers. Through advocacy, research,
and member programs and services, Restaurants Canada is dedicated to
helping its members in every community grow and prosper.
Canada's restaurant industry directly employs more than 1.1 million
Canadians, contributes $68 billion a year to the Canadian economy, and
serves more than 18 million customers every day.
SOURCE: Restaurants Canada
For further information:
James Rilett, Vice President, Ontario, 416-649-4241 or email@example.com
Mary Gazze, Communications Specialist, 416-649-4226 or firstname.lastname@example.org