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Minimum wage increased to catch up with four years of inflation, no increase to base wage

Ontario provincial government raises minimum wage to $11 per hour to catch up with the cost-of-living increases over the last four years. Poverty advocates and workers are disappointed in the move, saying the crisis needs bolder action. 

Toronto (31 Jan. 2014)  – In Ontario, the minimum wage has been frozen at $10.25 for the last four years. Many people living on low-incomes and their advocates have been urging the provincial Liberal government to increase the minimum wage to get people out of poverty. Six months ago Premier Wynne appointed a panel to review the issue and bring forward non-binding recommendations. 

Provincial panel examined Ontario minimum wage for six months

In July 2013, Ontario Labour Minister, Yasir Naqvi, named Anil Verma chair of the Liberal government’s long-awaited advisory panel of business, labour and youth representatives. Verma teaches human resources management at the Rotman School of Business at the University of Toronto. The six-member panel held 10 public consultations on the minimum wage and encouraged discussion with Ontarios through online communications and social media. One of the major goals of the review was to address increasing poverty levels throughout the province.

Anti-poverty advocates, union and other social groups, mounted a major campaign through the Workers' Action Centre to encourage the government to increase the minimum wage to $14 per hour and idex the wage to inflation. 

Panel report supports indexing increased minimum wage to inflation

On January 27, the panel presented its report. While the findings do not include a rate for the minimum wage, it does recommend that any wage should be increased every year according to inflation. The report also suggests that business should receive four months' notice prior to changes to the minimum wage. Verma and the other panelists want to see the provincial government review the situation in five years. 

Unfortunately, the panel applied a narrow focus to their work and did not tackle the issue of how to recover after four years of frozen wages. The report is absence of a wage recommendation 

Premier announces minimum wage increase to $11 per hour to make up for inflation over last four years

After showing clear research that an increased minimum wage of $14 per hour would help people get above the poverty line, the government has chosen not to move in that direction. While the Premier announced her government would be increasing the minimum wage to $11 per hour to meet the increases in inflation over the last four years, she has not announced anything further. She did indicate that legislation would be introduced to tie the minimum wage to inflation, yet no date has been set to meet that commitment. 

While applaud this first step, they warn that $11 per hour is not enough to reduce poverty. 

Comments in the media suggest that Premier Wynne is courting the business community by not acting on the calls for such a higher wage increase. There is also speculation that she considering her government's minority situation at Queen's Park before making further decisions that may launch a spring election. 

More information:

Raise the minimum wage campaign

Operation Maple video asks important question about minimum wage: Can you survive?

New report shows minimum wage not just for young or new workers

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