TORONTO, Jan. 30, 2014 /CNW/ - Retail Council of Canada (RCC) expressed
its concerns today over the Government of Ontario's announcement to
raise the minimum wage in Ontario to $11.
"While RCC supports the Ontario Minimum Wage Advisory Panel's
recommendations announced earlier this week to link minimum wage to
Ontario's Consumer Price Index - the move to retroactively apply this
principle is quite simply double counting," says Diane J. Brisebois,
President and CEO of RCC.
The last round of increases, put in place by the Ontario Government from
2008-10, raised minimum wage by $2.25 an hour, a significant increase
over three years - 28% - one that more than captures all CPI inflation
from 2008 to today.
"At a time when Ontario CPI was typically only 2% annually, employers
were required to absorb a huge increase to their labour costs over
those three years," says Brisebois. "To go back now and apply a
further 6% in retroactive CPI is unfair and inconsistent with the
principles just announced in the Panel's recommendation. It's bad for
job creation, and bad for the economy."
RCC participated in the Advisory Panel and recommended that any changes
to Ontario's minimum wage be linked to key economic indicators,
specifically the Consumer Price Index (CPI).
RCC encourages the government to apply the recommendations outlined in
the report on a go-forward basis. "Any attempt to apply the
recommendations retroactively would result in Ontario's minimum wage
being seriously out of step with other Canadian Provinces, and
neighbouring U.S. states, which would, in turn, have a direct impact on
Ontario's economy," says Brisebois.
Retail Council of Canada (www.retailcouncil.org) is the Voice of Retail. Founded in 1963, RCC is a not-for-profit
association which represents more than 45,000 stores of all retail
formats, including department, grocery, independent merchants, regional
and national specialty chains, and online merchants.
SOURCE: Retail Council of Canada
For further information:
Retail Council of Canada