Minimum wage hike could end up harming workers

Legislation that will see the minimum wage in Ontario jump to $15 per hour is a politically motivated initiative that will ultimately hurt the workers themselves, says Toronto employment law lawyer Kevin Marshall.

"I believe the decision was driven by the fact that there is an election coming next year", says Marshall.  "It may seem to benefit workers, but in fact will harm them."

Marshall says that a number of businesses are vulnerable and may not sustain the pressure that increased wages would present.  He points to the retail sector, which is having a difficult time with the vast competition from online retailers.  Restaurants face similar pressures.

Employers will be forced to find savings elsewhere, which could result in fewer full-time jobs and more contract work, cutting wages for other workers, or increasing the cost of goods and services.

"It's always a question of cost and benefit."  Read more here

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