We are a group of concerned first-year students at the University of Guelph-Humber and are writing to you to discuss the current minimum wage situation in Canada. The current minimum wage offered to Canadian citizens is not sustainable to live efficiently. The cost of living, inflation and the reduction of working hours have a negative impact on the population. These factors create barriers for those living on minimum wage to make ends meet and support themselves or their families. As college students we see the struggles of our fellow citizens in the media, on the streets, and in our personal lives. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Background/Research: November twenty-second; Shortly after Premier Wynne's government announced its plans to increase Ontario's minimum wage, the Ontario legislature passed Bill 148, the Fair Workplaces, Better Jobs Act. This required employers to implement significant changes in the workplace. Including the increase in the hourly minimum wage, effective January 1: fourteen dollars, thirteen dollars and fifteen cents for students and twelve dollars and twenty cents for liquor servers (Government of Ontario, 2018). Unfortunately, this change has proven detrimental to Ontarians. This is evident as it contributed to the loss of approximately fifty-nine thousand jobs by two thousand and eighteen (StatsCan, 2018) and it is estimated that this number will continue to grow, resulting in the loss of approximately sixty thousand jobs by two thousand and nineteen. (Canadian Press, 2018). Furthermore, rising wages are followed by negative economic consequences. In particular; inflation, recognized as harmful for both consumers and businesses. Additionally, approximately sixty percent of minimum wage workers are youth workers (between the ages of fifteen and twenty-four). However, the increase in wages has caused a drastic decrease in the youth employment rate. Having less experience and being more vulnerable allows companies to easily let these workers go. This is unreasonable since students often need minimum wage jobs to afford education. Therefore, this change has proven, and will continue to prove, harmful to Ontarians. Prior to this, the minimum wage was: eleven dollars and forty cents, ten dollars and seventy cents for students, and nine dollars and ninety cents for alcohol servers. This suggests that there was a 32% increase in wages in twenty-eighteen countries. With this change implemented, Ontario has reached its all-time high. Additionally, among the ten provinces and three territories, Ontario has the highest minimum wage, with Alberta at thirteen dollars and sixty cents and the Northwest Territories at thirteen dollars and thirty-six cents (Payworks Canada, 2018). Ultimately, Ontario's new policy is jeopardizing the quality of life of its citizens. This is evident as raising the hourly minimum wage has created and will continue to create more problems than it solves. Therefore, changes should be developed and implemented for a better future. Current Status: As of November twenty-second two thousand and seventeen, the Ontario government passed the Fair Workplaces, Better Jobs Act. As Ontario's economy grows, the government has chosen to focus on how it could grow together. As far as laws go, Ontario has decided to improve workplace bills. One widely discussed issue would be increasing and/or decreasing the minimum wage. Beforeof the law's passage, Ontario's minimum wage was eleven dollars and forty cents an hour. An income that is difficult to sustain for many Ontarians. The general minimum wage has since increased to fourteen dollars an hour effective January first, two thousand eighteen. Then, on January 1, 2018, the minimum wage will be increased by another dollar, up to fifteen dollars an hour. While liquor servers are still at the minimum wage of twelve dollars and twenty cents an hour. This does not coincide with the little suggestions they might give. According to Ontario's new premier, Doug Ford, he plans to freeze the minimum wage at fourteen dollars, ending Ontario's one-dollar minimum wage increase in January. (Government of Ontario, 2018) Key Considerations: Low income can lead to many concerning situations. Living conditions can become crucial as low income can be linked to poor nutrition, inadequate housing and poor mental health. Citizens who maintain a low income have been found to have a sharp decline in health, whether they work part-time or full-time. To keep up with rent or any other consecutive costs you need to budget for other daily services like meals. Reducing meals can only cause poor nutrition without remedy. Fortunately, as citizens we have universal healthcare, but what if you need additional expensive remedies such as medications? When it comes to the Toronto real estate market, the costs are not favorable to the minimum wage. According to research firm Urbanization, Toronto rent averages around two thousand dollars a month, making Ontario one of the most expensive provinces in which to live. The average full-time worker in Toronto barely makes two thousand dollars, with the average being just over a thousand. dollar mark. Leaving Ontarians with overdue rent or debt in hopes of making ends meet. Mental health has become a widely discussed issue in Ontario. How is it possible that the statistics on people with mental health problems are still so high? Yes, there are many other factors that explain why so many people suffer from mental illnesses. However, much of this problem affects low-income earners. Feelings of not being able to feed your children, not being able to meet next months' rent, and so on can make people feel worthless. This feeling will only trigger depression and other serious mental illnesses. Other jurisdictions: Taking a look at surrounding provinces and their efforts to address the issue provides further perspective on the situation. Minimum wage rates vary from province to province and range from ten dollars and fifty cents to fifteen dollars an hour. Similar to Ontario, many provinces have followed suit by ensuring the minimum wage is set at a respectable level to help support living conditions. However, three provinces in particular have taken additional measures to stabilize the cost of living, in their respective regions, for families living primarily on the minimum wage. Within the Maritime provinces, Nova Scotia plans its own path to sustainability by allowing many employers to pay employees based on work performed rather than the minimum wage. This arrangement is called Piecework (Government of Nova Scotia, 2017). Setting the minimum wage standard at ten dollars and fifty cents ensures that every employee who makes the bare minimum still does not receive less pay. All employees paid the minimum wage are entitled to receive asimilar payment if the production of their work results in higher pay (Government of Nova Scotia, 2017). Moving on to the prairies, Alberta's method of maintaining living standards is seen through increasing the minimum wage along with reducing business taxes. Their approach helps low-income workers while providing small businesses with the ability to thrive. Not only will small business taxes be reduced from 3% to 2%, but there will also be support programs to address the needs of these businesses (Government of Alberta, 2018). The Government of Alberta projects that there will be $34 billion in infrastructure aid for families and businesses (Government of Alberta, 2018). The Summer Temporary Work Program, also known as STEP, will be reinstated and will provide more help to employers with additional funding when hiring high school and post-secondary students (Government of Alberta, 2018). This program also provides student employees with a springboard to gain the skills needed to aid their future endeavors. The Western region of Canada is known to be one of the most expensive provinces to live in. British Columbia addresses minimum wage challenges by introducing the Fair Wages Commission (Government of British Columbia, 2018). This approach uses a ladder method that slowly increases minimum wage rates each year; aiming to reach fifteen dollars and twenty cents starting in two thousand twenty-one. The minimum wage is the ideal income that two members of a family should earn to meet their standard of living. According to the British Columbia government, four small wage increases, over four years, will close the large gap between the minimum wage and the living wage. Of those earning the minimum wage in this province, 62% are women seeking to obtain additional income for their families (Government of British Columbia, 2018). The slow ramp-up, much like Alberta's approach, allows both businesses and employees to keep pace and cope with change over a period of time. Options: Raising the minimum wage seems like a good idea, until the community starts losing money and the economy improves. interrupted. For example, increasing the minimum wage increases school dropout rates because children do not need to go to school if they think they will earn enough to survive, thus creating a less educated generation (Doyle, 2018). However, children dropping out of school have not considered the inflation that goes hand in hand with rising minimum wages. Grocery shopping, property taxes, bills, cars; prices will all increase. Raising the minimum wage will also influence employers to reduce hours and benefits (Bouw, 2018). Employers will also rely on technology to get the job done, rather than hiring employees (for example, in factory work, the employer might invest money in a better machine rather than hiring a new employee). Raising the minimum wage will also affect employers. use international labor where the minimum wage is lower or non-existent. International labor will come from third world countries, where workers will be paid much less to make products and ship them to North America. The increase in international labor will also make it harder for North Americans to find reliable work. Additionally, raising the minimum wage could affect people who already earn above the minimum. Colleagues who earn only the minimum wage will receive a pay raise, but employees who earn above.
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