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MBOT News

27

Sep 17

Extending Minimum Wage Implementation Will Slash Job Loss Risk by 74%: Economic Analysis Final analysis of Bill 148 reveals $12 billion economic problem that the Ontario Government must resolve

Wednesday, September 27, 2017: Today the Mississauga Board of Trade, in partnership with the Ontario Chamber of Commerce (OCC) and the Keep Ontario Working (KOW) Coalition, released two major reports that broadly capture the challenges associated with Bill 148 and the concerns of the employer community. The first report is the final economic impact analysis of Bill 148 by the Canadian Centre for Economic Analysis’ (CANCEA), which was peer-reviewed by Professor Morley Gunderson of the University of Toronto. CANCEA’s analysis reveals that if Government were to do nothing other than implement the minimum wage increase over five years instead of in the next 15 months, jobs at risk would decrease by 74 per cent in the first two years. The analysis also indicates that while the proposed changes will see $11 billion in wage stimulus flow into the economy in the next two years, a remaining $12 billion problem exists which will lead to jobs lost, added costs, and general damage to the Ontario economy. “Today’s final report by CANCEA is clear, while the Government is correct to say that there will be a stimulus from Bill 148, it does not cover the $23 billion cost challenge for business in the first two years – a substantial amount that poses great risk to our economy and cannot be resolved through offsets alone,” said Karl Baldauf, Vice President of Policy and Government Relations at the Ontario Chamber of Commerce. “More must be done. The Ontario Government must resolve the economic challenges presented in Bill 148 through a combination of slowing down the implementation period, amending the legislation, and offsets. Business and Government must work together to avoid unintended consequences and protect our most vulnerable.” “This report should be a great concern to Mississauga businesses,” said David Wojcik, President & CEO, Mississauga Board of Trade. “We call on our MPPs to heed this advice and slow down the pace of change through Bill 148.”
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