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PAGE 4 THE CANADIAN STATESMAN, JANUARY 28,2004 www.durhamreglon.eem Minimum-wage increase not enough, critics say BY SHELLEY JORDAN Staff writer DURHAM -- The Ontario Liberals arc raising the adult minimum wage from $6.85 to $7.15. But while the hike will affect affect approximately 11 percent of workers provincewide, critics argue the increase is not enough. "It's far below the poverty line," said Michael Desroches, of the Ontario Coalition Against Poverty. "The minimum-wage increase is barely up with inflation." inflation." The Ministry of Labour reports reports minimum wage has been frozen for nine years and will be raised incrementally to $8 per hour by 2007. As well, minimum wage for students under 18 will be immediately, increased to $6.70 from $6.40 per hour beginning beginning Feb. 1, and will rise incrementally incrementally to $7.50 per hour by 2007. The ministry advocates phasing phasing increases in over time to allow companies time to adjust to the increased cost of doing business. Bob Malcolmson, CEO and general manager for the Oshawa Chamber of Commerce Commerce is concerned young workers workers will suffer as small businesses businesses feel the crunch. "It's a competitive market out there," he said. "(Businesses) have to determine where to save money. If students working 20 hours per week to save for college college are cut back to 15, they'll end up losing money." To illustrate his point, Mr. Malcolmson says a company with' 50 student employees working 20 hours per week would cost the company an additional additional $1,150 or 157 work hours. Stephanie Skelton, a third- year marketing student at Durham College says she doesn't doesn't think the boost will make much of a difference to young workers. "Most students work part- time," she said. "Most of us will be out of school and have good jobs by the time they raise it to $8. Nobody will be blown away." While young workers are unlikely unlikely to notice a change, Mr. Desroches says the increase by the Liberal government is almost entirely meaningless for poor working families. "$10 an hour would make a difference in quality of life, but for anyone trying to live on less than that, it's far below the poverty line." According to the government-funded government-funded Career Circuit Canada, which operates a network network of non-profit youth employment employment services agencies, inflation inflation has climbed 15 per cent since 1995. During the same period, period, the minimum wage remained remained frozen. For a single person person living in a city of 100,000 Ip 500,000, Statistics Canada sets the poverty line, or Low Income Cut-off (LICO) at $16,407. After the hike takes effect, an individual individual earning minimum wage and working 40 hours per week will earn a gross annual income of $14,872. John O'Toole, MPP for Durham Region says the solution solution is tying minimum wage to the consumer price index or inflationary inflationary index formula. "I believe all people should receive adequate employment, that's the first requirement," said Mr. O'Toole. "It's not an easy tightrope for the government to walk," said Mr. Malcolmson. "Businesses coming into Canada are looking for qualified labour, wages and tax rates. They may make a choice in another province or jurisdiction." jurisdiction." The minimum hourly wages in other provinces and territories across the country are as follows: British Columbia, $8; Alberta, $5.90; Saskatchewan, $6.65; Manitoba, $6.75; Quebec $7.30; New Brunswick, $6.20; Nova Scotia, $6.25; Prince Edward Island, Island, $6.50; Newfoundland, $6; Yukon, $7.20; Northwest Territories, Territories, $8.25; Nunavut, $8.50. Minimum wage increase schedule: Date February 1, 2004 February 1, 2005 February 1, 2006 February. 1, 2007 General Rate $7.15 $7.45 $7.75 $8 Under 18 $6.70 $6.95 $7.25 $7.50 '» f hV.-.OWOuàWiU.. 1 rit no 1 if'.-V... • > H# ' :;U ; : «•"•■•"flj r ■; w^i^ÉÉiÉ 'i-'*?/•, -'-'if' ' ' 164 Baseline fid. 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