The Ontario government's decision to raise the minimum wage is going to have a significant impact on the agri-food industry, according to the President of the Ontario Federation of Agriculture.
Keith Currie says there are portions of the agricultural sector that can't simply be lumped in with other industries.
"By nature we are going to have to increase our salaries to our staff. And what's unfortuneate for agriculture is we don't have an opportunity to recapture that added expense," said Currie. "We can't add another nickel or a dime to a product that we're making so it's quite problematic."
"Prices of product go up when things like minimum wage go up because people want to recover the cost. As far as having a solution to an increase in the minimum wage, creating a strong business environment in the province, and in particular from our aspect, a business environment in rural Ontario," said Currie. "And some economic environment in rural Ontario will get people not only back to work but increase the work force in rural Ontario and help the economy and help the money flow."
Currie says creating a better business environment and creating good-paying jobs would be a better way to drive the economy forward.
Earlier this week the Ontario government says minimum wage earners will get $15/hour in 2019.
“The economy has changed. Work has changed. It’s time our laws and protections for workers changed too,” said Premier Kathleen Wynne. “Too many families are struggling to get by on part-time or contract work and unstable employment. And no one working full time in Ontario should live in poverty. With these changes, every worker in Ontario will be treated fairly, paid a living wage and have the opportunities they deserve.”
According to the province, just under a third of working Ontarians make less than $15/hour.
--with files from Steve Sabourin, Scott Kitching
