Kevin Flynn pushing his Fair Workplaces and Better Jobs legislation

Contrary to what many small business believe, boosting Ontario's minimum wage won't have the negative effect many think it will, said the province's minister of labour.

Kevin Flynn, who made a brief stop in Greater Sudbury on June 28 to meet with United Way and representatives of some of its member agencies, said he doesn't buy the argument that paying people poverty-level wages is something that can be sustained into the future. He was here to further push his Fair Workplaces and Better Jobs legislation.

“We don't buy into the idea that having a very competitive economy, like we have in Ontario right now, and paying people properly are mutually exclusive to each other,” he said.

Ontario's economy is booming right now, and we're leading the world in economic growth. We're ahead of every other G7 country, and every other province in Canada. Our unemployment is low, yet we've been able to increase minimum wage 70 per cent in that period

“So, if increases in minimum wage led to unemployment and slow economic growth, we'd be seeing that now, but instead, we're seeing the exact opposite.”

Flynn outlined the timetable for the phased-in approach to increasing minimum wage from the current $11.40 an hour to $15 an hour. The first increase, to $11.60 an hour, will happen Oct. 1 this year. It will then be raised to $14 an hour on Jan. 1, 2018, then to $15 an hour on Jan. 1, 2019.

“We've come to the realization that, in the province of Ontario, there are people working 35 to 40 hours a week, but are having to choose between paying rent or eating,” he said. “Thirty per cent of the people in Ontario earn less than $15 an hour, and half of those people are between the ages of 25 and 60. We know these people are trying to raise families, they're trying to put their kids through school, but they are trying to do it on poverty-level wages. That has to end.

“Some people, I would imagine, will be very strongly in favour of it, while others will be opposed because they are afraid of the challenges. I understand the concerns from small business, and we're working with them to address some of the challenges they think may be associated with this. I think we can work our way through it.”

Minister of Small Business Jeff Leal and Minister of Economic Development and Growth Brad Duguid are both engaging with small business and chambers of commerce to see if there is some role the province can play in helping to make the transition, Flynn said. Furthermore, a committee of all three parties in Ontario will be taking the proposed changes around the province to talk to people and get their feedback and ideas.

“The people of Ontario will be able to have their say, and it will come back to the House in the fall sitting, and it's my intent, if everything works out, to have this legislation approved and implemented for the Jan. 1 increase to the minimum wage to $14 an hour,” Flynn said. “I think business, labour and the government can come to a conclusion where people can work 35 to 40 hours a week and no longer live in poverty.”

The increase to minimum wage is arguably the most contentious issue among an overhaul of the province's labour law.