Instead of strengthening the leverage of working class Canadians, the Alberta NDP and Ontario Liberals are imposing wage policies that will kill many jobs.
Two new reports are raising big concerns about huge potential job losses from the minimum wage policies being imposed by the Wynne and Notley governments.
As noted by BNN, “Alberta’s move to raise the minimum wage to $15 an hour by 2018 could lead to the loss of roughly 25,000 jobs, according to a report published by the CD Howe Institute. Meanwhile, a TD bank report says Ontario’s plan to boost the minimum wage could contribute to the loss of up to 150,000 jobs in the province by the end of the decade.”
Alberta Economist Joseph Marchand said, “Without an upward swing in energy prices, the job creation tax credit, or any other economic flexibility, Alberta mistakenly prioritized wages at a time when employment was a problem.”
In their report, TD said “Raising the minimum wage is an ineffective way to reduce poverty, but it is popular with the province because it will not impact the provincial budget, the bank said. The provincial government will still have to deal with the fallout from its minimum wage legislation.”
Good goal, bad policy
Increasing wages is very important. However, trying to legislate higher wages ignores the deeper issue behind weak wage growth. Canada is constantly taking in more and more potential workers, and that’s not even counting the the temporary foreign worker program. As a result, the individual leverage of each worker is weakened.
If there were fewer workers competing for jobs, wages would be higher. That’s why the big globalist corporations want extremely high immigration.
With immigration levels in Canada rising even higher, minimum wage increases will simply cause many companies to reduce hiring, or lay people off – as the reports above make clear.
Instead of actually helping working-class Canadians, the Alberta and Ontario governments are implementing policies that will make the job market even worse – all so they can virtue-signal as if they are doing something.