Costs are rising in agricultural circles in terms of fertilizer, packaging, fuel and now in Ontario, businesses are facing an unexpected increase to $15 per hour minimum wage as of January 1, 2022.  From a competitiveness standpoint, Ontario’s minimum wage will be much higher than Quebec’s rate of $13.50 per hour which came into effect in May 2021. 

In a recent survey by the Canadian Federation of Independent Business (CFIB), the increasing cost of doing business was the top concern of small business owners at 76 per cent, followed by supply chain challenges at 64 per cent. 

According to the CFIB, the Ontario wage increase from $14.35/hr (October 1, 2021) will not help to address the province’s labour challenges and will put more pressure on the wage scales for employers already paying above the minimum wage to retain workers. 

CFIB also points out that the largest Canada Pension Plan (CPP) rise to date under the federal government’s CPP increase plan will take effect at the same time. 

The business group is urging a rethink of the timing of the proposal along with an economic analysis. 

Of the 10 provinces, British Columbia currently states a minimum wage rate of $15.20 per hour while New Brunswick has the lowest at $11.75 per hour. 

Source:   Canadian Federation of Independent Business November 2, 2021 news release