Mixed reactions over increase in minimum wage

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There are mixed reactions to Ontario's 15 cent increase in the minimum wage that was implemented on Oct.1.

Starting Oct. 1, Ontario’s minimum wage rate increased from $11.25 to $11.40 per hour, according to the Ontario Ministry of Labour.

Though this 15 cent increase is not a whole lot, it makes Ontario’s wage one of the higher ones in the country, just behind Nunavut at $13 per hour, Northwest Territories at $12.50 per hour and Alberta at $12.20 per hour, according to the Retail Council of Canada.

Darren Chapman, from the Lawrence Kinlin School of Business at Fanshawe said there are two sides to this increase that need to be looked at.

“People who are going to be at the minimum wage rate will benefit, the problem though is because wages go up, there’s really only a set amount of dollars available for buying labour,” Chapman said.

According to Chapman, this increase will allow those who can continue to work to get a higher wage, but at the same time there will be some people who will be let go of from their job over it.

This means the increase will allow for more money to be earned, though it could mean that employers will have less hours to divide out to their employees.

“It becomes a balance to the province, they say ‘what is the benefit of those making a higher wage and their ability [to] earn or get close to a living wage, versus how many people are we going to affect that may lose hours,” Chapman said.

The difference of a higher wage will not offset the loss of hours some employees may get, he said.

“So for them, it’s an economic loss than benefit, and if there are more people like that then it’s an economic loss for society,” Chapman said

On the other hand, Chapman said if few people are losing hours, and the hours that they lost are made up with the new amount they will be making, then it’s a benefit to those people. That will also allow them to spend more and therefore could impact the overall economy.

“In reality it’s such a small change to the big picture, so you’re really looking at it in terms of the economic benefits to those that gain, versus the economic losses to those that lose,” Chapman said.

Chapman said those who gain are happier, while those who lose generally go quietly and don’t affect political decisions.

“As far as the province is concerned, ‘yeah you know I get more political mileage from raising it than I do from lowering it’,” Chapman said.

For students working part-time, Chapman said they need to not take on debt and you have to pay yourself first, meaning whatever you’re making you should give a certain amount and put it in a separate bank account, so you can use that money instead of a credit card for when you want to buy something.

“Start to build up some form of saving because that’s where your wealth comes from, that’s where your economic freedom comes from,” Chapman said.

Liska Martindale-Dubrule, career services consultant with Fanshawe’s Employment and Student Entrepreneurial Services, likes the idea of the increase in minimum wage.

“I think it is a great thing for students and for the younger people that when looking for work, it never hurts to have a little extra wage increase for sure, to help with the cost of living and everything else,” Martindale-Dubrule said.

Though the rate is not going up by much, she said every little bit helps.

Martindale-Dubrule said she hopes that the rate increase will be an incentive for students looking for work, to actually look for work, and the money will help aid the students in their studies and living costs and also have a bit of a personal life as well.

“Having a personal life and working and studying is important to have as well no matter what,” she said.