Minimum Wage

Posted on Thursday, November 27 at 08:38 by Jim Callaghan
First, they chose to use a T-shirt company as the experiment, and they wanted to pay the employees $12 an hour. They did the required market research, bought the building and equipment, hired the staff, much of which was unskilled labour, and began to produce the product. They marketed the product, and they had to add an additional $0.50 to the finished product in order to compete within their field, and the business was such a success, they eventually turned the company over to the employees, as owners/workers to keep the company going without their participation. This is what I have a problem with. If a company is paying $5.95 to work as a liquor server, or $6.85 for general help, that will not pay the bills. $8.00 an hour will not pay the bills. $9.00 an hour simply brings the worker up to the poverty line, which is an improvement, but more can be done. The Ontario NDP wanted to make the minimum wage $8.00 an hour immediately, and index it to inflation. That perhaps would be a start, but I maintain that we should start at $9.00 an hour, indexed to inflation, and increase it to $12 an hour over the next two terms of the government, which would be about 8 to 10 years. That would give business time to adjust to pricing, and any initial layoffs would have a chance of recovery over that period. If Ireland can pay $12 an hour, along with Australia working toward a similar minimum wage, then why on earth can't a rich province like Ontario do the same ? Business that complains about the minimum wage being too high has not only not done the market research on their product or service, they shouldn't be in business at all. I've often wondered how much the owners make in these companies that whine so much, what kind of house they live in, what kind of car they drive, etc. I know from personal experience that a golf course can be very lucrative, but due to the laws in Ontario, anyone that works outdoors on a golf course is not entitled to overtime in excess of 44 hours per week, and they are not entitled to statutory holiday pay. I had to complain to the Ministry of Labour to get additional money I felt was owed to me because I worked inside as a mechanic, as well as a superintendent, and the weeks that I worked indoors more than 50% of the time, I was entitled to all the benefits. The weeks I worked more than 50% of total hours outdoors I was not entitled to these benefits. That was due to the fact that golf courses fall under the Agriculture category. Meanwhile, the owner had two homes, drove a Mercedes-Benz, and was a millionaire after about 8 years in the business. You must agree with me that this is not fair to the worker, and the MoL should streamline their rules to keep things a little simpler. The point of this article is to make you aware that we, in Ontario, can do much better than we have in the past. I feel that within 10 years, we should have a minimum wage pegged at $12 an hour, indexed to inflation, and nevermore would people in this province ever have to work for wages below the poverty line. They have recently coined a new word, McJobs. I can tell you that a certain fast-food chain is not happy about this, but they are a part of the problem. Nobody in Ontario should have to be called the "working poor". We can change that, but it will take some time and effort. It is a worthwhile cause.

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  1. Fri Nov 28, 2003 12:24 am
    I'm not familiar with Austrailia's or Ireland's laws, but my impression of the minimum wage laws are that they aren't meant for full time workers. They end up getting used for full time employees, by making employees work less than full time hours. Some businesses get aroung this by hiring more people than they need, and scheduling them for less than the 40 hours needed for full time employment, and if they work more than 40 hours, they still don't get the minimum wage.<p> Perhaps setting it up so that anyone working more than 3 months or 820 hours has the option to be considered full time and must be scheduled for 40 hours per week?<p> But an increase in the minimum wage is needed in ethier case.<p> <p>---<br>"History does not repeat itself, but it does rhyme" Mark Twain

  2. Fri Nov 28, 2003 12:56 am
    Agreed. In Toronto the Harris/Eves Tories did a number of things:

    1. They allowed employers to, legally, DEMAND an employee work 7 DAYS a week, with almost no notice, as long as they get 2 days off some time later on.

    2. They changed the overtime law, making it an averaged number, which means that if I work 80 hours 1 week, and 10 the next, it averages out to under overtime leve, meaning I GET nothing extra for the 80 hours worked!!! HOWEVER, to qualify, it must average to over the regular work week for 4 CONSECUTIVE WEEKS, OR NO OVERTIME IS MANDATED!!! Naturally, employers often pay more, because they want their employees to be happy and productive, but they aren\'t legally obliged to.

    3. It\'s also nearly impossible to qualify to for overtime at all, because the unenforced legal work-week was changed to 60 hours, from 48 -which the FIBERALS have yet to repeal.

    4. The Tories also repealed the NDP law which banned SCABS, a rule designed to speed up negotiations.

    5. The Tories did other things, most of which I forget, but I believe theyeliminated some other laws that protected workers......and of cours there\'s the bastard Paul Martin, witholding 2/3\'s of the E.I. money to pay down the debt.

  3. Fri Nov 28, 2003 12:56 am
    I agree, but tell that to the folks that work at the fast food chains, or pump gas for a living.

    Part-time work should still fall into a category that allows them to make a decent wage.

    For example, I know a person who is a radiologist, and she has been since 1960. For many years, she had to work part-time, 4 hours per day, but she had to be on call for a 20 hour period every day. In her own words, she had no life, she couldn\'t go anywhere, she had to be on call within minutes or lose her job.

    All that after a 4-year university course, at much expense.

    That is the unfair side-effect that came with the job.

    It is a complicated issue, but putting a fair minimum wage at the very beginning would at least keep people out of abject poverty.



    ---
    "Arrogance in Politics is unacceptable"
    Jim Callaghan
    Minden, Ontario
    705-286-1860
    www.misterc.ca

  4. Fri Nov 28, 2003 5:06 am
    It isn\'t just a problem in Ontario...it\'s country-wide. Keeping the minimum wage low is bad for the economy though. At $12.00 and hour, an employee will still spend every cent they get. They\'ll do that in their own province, driving the local economy and creating more jobs. They\'ll pay income and sales tax.

    Allowing corporations to pay less lets them take the money back to their head office, their shareholders. That money is not spent locally, in much less likely to re-invested in the provincial economy, and contributes little to the tax base.

    As for part-time workers...I know several people who work at part-time jobs. Some of them work three part-time jobs to make ends meet, some are students, some are semi-retired. Most make the minimum wage or someplace close to it. They could all use a raise, it would allow them to pay for little things like decent food and dental care.

  5. Fri Nov 28, 2003 5:07 am
    I see it even in my full time job. I'm on Salary. So my employer simply adds to my workload. People leave my department, but the work still needs to be done. So the rest of us have to pick up the slack.<p> They could hire more people, but everyone is on salary, and that means no paid overtime. I fight back by telling the owner that my department won't work longer than the 8-5 in our contracts, there will be no special projects: we are on maintainence only. No planning, no future projects. Break fix only. Too bad, so sad, complaint department; third floor. (2 story building).<p> <p>---<br>"History does not repeat itself, but it does rhyme" Mark Twain

  6. Fri Nov 28, 2003 6:59 am
    I agree with the above comments and it would appear that overall the working class is being used more like slaves and told they are lucky to have a job so shut up! I worked in dental offices for about 10 years and they fall in a category all of their own, one dentist got around paying stat holidays, by closing on Mondays, therefore we never worked Monday and most holidays are on Mondays, therefore no paid day off, no day in lieu of etc. We never were paid overtime although we could work 9 or 10 hours one day, they just made sure we didn\'t go over the 40 hours in that week, I was the only one who had a 1 hr lunch and I left the building, I agreed to it when hired. But I felt bad for the rest, 1/2 hr lunch,not paid, start eating your lunch oops the dentist needs you...drop the sandwich back in an op,... looking into someone\'s decayed mouth, then go back and finish your lunch. Thanks. Was the dentist starving, doing without? No, not likely.

    After about 5 yrs of doing everything possible to make my boss rich, I asked for a decent raise,(I was the office manager and considered a very valuable employee), I mentioned that other offices were paying people in my position a great deal more money...guess what, I was unemployed pronto...same day. This is the same employer who had no problem sending month end work home via another employee, while I was recovering from major surgery, under doctors orders to be off work for 6 weeks. The employer was not paying me for this time off, but still expected me to work, and I did!

    The loopholes are for the rich, the employer that wants to use his/her staff can do so without fear of penalty, I can\'t tell you how many times I have heard the expression \'workers are a dime a dozen\'. The attitude has become total disrespect for the worker as a human being, family does not count, benefits are superficial if they exist at all.

    Minimum wage doesn\'t reflect the ability for anyone to actual live on that wage, it is suppose to be a starting base, after 3 months probation a decent wage should be automatic. Rather than pay employees properly they have new incentive systems, the team work attitude, everybody is suppose to work very hard to make the employer x amount of money this month, if you make the target everybody gets the bonus $$$, if you don\'t nobody gets anything...so if you work your butt off but someone else doesn\'t or isn\'t in a position to effect the bottom line, there is no reward. It is disgusting, you end up hating your co-worker \'cause you can get a decent pay cheque. The goal gets higher every month and every year, so the carrot is dangling farther and farther away but your so caught up in the chase you don\'t even realize you are working for a tyrant, that is getting very rich at your expense.

  7. Fri Nov 28, 2003 7:38 am
    I have to agree with all the above. There is no simple answer. If you are on salary, you usually get nothing extra for overtime. If you ask for a raise, you lose your job.

    That is exactly what happened to me, so I went to the Guelph area for 2 seasons to make a decent living. When I came back, I was offered $9.60 an hour, seasonal, which worked out to about $14,000 per year, including EI benefits.

    Minimum wages are one thing and seasonal work is another.

    We will never convince the owners that wages are too low, so it has to come down to government intervention. That is the only way some employers will do the right thing. They have to be forced to reconsider their position, and they won\'t do it by themselves.

    There is no easy answer, but that is one area that government can be of benefit. That is why I don\'t like parties that complain about government being too big and too costly.

    Certain parts of our ecomnomy are better off in government hands, like electricity, education, and health care, to name a few. Otherwise, if we have to rely on the generosity of the private sector, get ready for a huge disappointment.



    ---
    "Arrogance in Politics is unacceptable"
    Jim Callaghan
    Minden, Ontario
    705-286-1860
    www.misterc.ca

  8. Fri Nov 28, 2003 7:07 pm
    I used to work for a place that the 3 month/yearly review went the same for everyone. It's like they had it scripted. The interviewer would hum and haw...punch some numbers into a calculator and say "We can give you $200 a month". The number was the same for everyone. It was hard to not laugh. It's like they thought we didn't discuss this amongst ourselves every Friday over beer.<p> The easiest way to get a raise in I.T. is to go to another job. That's the norm in my profession. Stay somewhere for a couple years, gain experience and knowledge, then go somewhere else. It doesn't matter what the company does - IT is always the same.<p> I usually just give my notice. I don't let them make a counter offer unless I like the job. If they could pay me more, they should have when it came time for my raise. By not giving me a raise, they lost the right to keep me.<p><p>---<br>"History does not repeat itself, but it does rhyme" Mark Twain

  9. Fri Nov 28, 2003 11:03 pm
    Yes, I agree with all of the above comments too. Since 1982, the average wage in Canada has gone down, while the cost of living has skyrocketed. You have greedy corporations, greedy people, who live much too extravagantly, which is pathological. Once again, I`m not opposed to people profitting from hard work or innovation, but what we have today is crazy! That`s why not only should minimum wage be driven up, but governments must also intervene to tax wealth in a more equitable way to spread it around to things like health care, education, and other social programs, which shield people from the miseries of the lottery of life. The government of Canada should also tell these corporations that if they want to sell it here, then they have to build it here. This will provide more jobs, of course, to choose from, which also helps to keep wages up, and then people can afford to buy the product as well! Sadly, when we look at this globalization thing, I think of the American example, where GM was once America`s largest employer. Now, who`s America`s largest?- Walmart. Quite a difference in affluence, as well as a tax base, eh? The same thing is happening in Canada too! Even Henry Ford once believed that he should provide ample wages and leisure time to his employees so that they could afford and enjoy their new model T!

    ---
    Dave Ruston

  10. Sat Nov 29, 2003 6:35 am
    Interesting...there was a report on CTV last night about the traditional Christmas bonus. Very few companies do it, but one guy was so proud of himself, as he makes his employees work for monthly bonus, he says, he just tells his staff if they want a raise, they just need to sell more then they get a bonus. What a great guy! The idea behind the bonus was goodwill, reward for loyalty, it wasn\'t earned by sales or any other merit, simply goodwill, you are my employee and it is Christmas so in the spirit of the season and since I am the guy making the big bucks all year, I am being unusually generous. I guess the guy doesn\'t get it, or maybe he is anti-gift giving or something. Funny thing though, I worked for a Jewish couple when I was a student,and at Christmas they spent a fair buck on a gift for me every year, also a Christmas bonus, go figure?

  11. Sun Nov 30, 2003 4:57 pm
    I wonder how the minimum wage has kept up with inflation over the years? Here in Alberta, the minimum wage is $5.90/hour! The personal exemption for income tax has not kept up with inflation either. Consequently, workers making the minimum wage are taxed on that measly amount! Everyone\'s time, is worth more than minimum wage. Some of these jobs may be low skill, but exhausting.

  12. Mon Dec 01, 2003 6:05 pm
    The Alberta minimum wage is pretty disgusting for such a wealthy province. In Ontario, ours is $5.95 if you serve liquor, because you\'re going to make a fortune from tips.

    The basic wage is $6.85 an hour, and our new Liberal party has promised to raise that to $8.00 an hour within the next 4 years.

    Since the wage was frozen in 1995, the cost of living has gone up, and when it finally reaches $8.00 an hour, we will still be on the losing end compared to the cost of living.

    However, since 1995, our Benefactors, the Tories, gave themselves an immediate 30% wage increase, and were secretly (or not !) planning to give themselves a further 25% wage increase after the election last month.

    How\'s that for keeping up to the COL ?

    Also, I understand they already get a wage increase of some 3% every year, so take that, taxpayers !!

    Oh well, I digress...



    ---
    "Arrogance in Politics is unacceptable"
    Jim Callaghan
    Minden, Ontario
    705-286-1860
    www.misterc.ca

  13. Fri May 28, 2004 6:24 pm
    The ministry of labour employment act of 2000 says that you are entitle to overtime pay even on salary.

    the only time you are NOT entitled is if you are supervisory or management.

    FYI

  14. by avatar Jesse
    Fri May 28, 2004 11:26 pm
    really? can you provide a link? And how does signing an employment contract affect this?

    ---
    Jesse



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