•   
  •   
  •   

Money Wage hike triggers food industry divide

16:11  09 january  2018
16:11  09 january  2018 Source:   msn.com

Minimum wage hikes could cost Canada's economy 60,000 jobs this year

  Minimum wage hikes could cost Canada's economy 60,000 jobs this year Minimum wage hikes across Canada this year could cost about 60,000 jobs, the Bank of Canada warns in a new report.The central bank published a report over the winter break, attempting to calculate what sort of economic impact a series of minimum wage hikes set to come into force this year will have on Canada's economy.

Wage hike triggers food industry divide http://a.msn.com/00/en-ca/BBI8dqd?ocid=st …

Companies should weigh price hikes to offset min. wage hike : Ont. labour minister.

a group of people sitting at a table© Provided by thecanadianpress.com

TORONTO - Signs announcing price increases and letters to employees slashing benefits have grown rampant in Ontario, revealing two very different approaches businesses have gravitated toward in the wake of province's minimum wage hike.

Popular Searches

OTC Markets Group Inc

OTCM

What’s missing in the debate over Ontario’s minimum wage

  What’s missing in the debate over Ontario’s minimum wage Opinion: Political debates are fundamentally about how we want to live together—and if we ignore the human element, we threaten our democracy

CKE Restaurants' roots began in California roughly seven decades ago, but you won't see the parent company of Carl's Jr. and Hardee's expanding there much anymore. What's causing what company CEO Andy Puzder describes as "very little growth" in the state?

wage hike - the amount a salary is increased; "he got a 3% raise"; "he got a wage hike ". As a small-business owner, I know firsthand the negative impact a mandated wage hike like that has on businesses, which are left with slimmer profit margins and fewer resources with which to hire more

29.20
-0.31
-1.05%
SemiLEDs Corp

LEDS

4.29
-0.13
-2.94%
Genworth Financial Inc

GNW

=
3.21
0.00
0.00%
Intel Corp

INTC

=
44.74
0.00
0.00%

Some Tim Hortons franchises have faced significant backlash after cutting paid breaks and forcing workers to cover some of their dental and health benefits to compensate for the minimum wage jump from $11.60 and hour to $14 an hour last week, while chains such as Pizza Nova say they will be upping prices instead.

But how some companies settle on the route to take might have come down to a factor as simple as timing, said Sylvain Charlebois, the dean of Dalhousie University's faculty of management.

He said there is little to no evidence that Restaurant Brands International Inc., the parent company of Tim Hortons, and franchise owners worked on a strategy before Ontario's new minimum wage rate came into effect Jan. 1. "It is not a surprise. Everyone knew it was coming," Charlebois said.

The premier should not be picking fights with small business owners

  The premier should not be picking fights with small business owners The premier should not be picking fights with small business owners0000

Your Reading List. Food Industry : Seattle’s Wage Hike Violates Corporate Constitutional Rights. A federal court in Seattle heard arguments Tuesday from a powerful food industry group and McDonald’s, Holiday Inn, and Comfort Inn franchise owners who claim Seattle’s minimum wage hike

Wage level varies for different industry segments and skill-sets,” said A Sudhakar, senior executive director, human resources at Dabur India. “Increasing the minimum wage to Rs.10,000 per month regardless of the categorisation of skilled and unskilled workers becomes arbitrary to our view.

Price increases take time to calculate and roll out, he said, so large companies with many locations or franchises that didn't plan ahead might have been in a scramble to adjust to the hike and target their workers instead.

"Food services are heavily affected because most of their workers are paid minimum wage and they can't rely on robotics and automation, but things like changing benefits or asking employees to pay for uniforms are things you can change very quickly," Charlebois said.

Raising prices can also be problematic because there's only so far you can increase them without driving away customers. A study published in the Journal of Labour Research has shown food service companies can only sustain a three per cent increase over a few years, which Charlebois said often pales in comparison to the amount needed to offset higher labour costs.

Despite that research, Ontario Labour Minister Kevin Flynn seemed to be nudging businesses to at least consider price increases.

No wage increases for Alberta nurses in tentative contract agreement

  No wage increases for Alberta nurses in tentative contract agreement In a notice on its website, the United Nurses of Alberta is recommending its 30,000 members accept the terms of a mediated settlement. The tentative agreement calls for a zero per cent wage increase for two years but recommends wages to be re-opened to negotiation in the third year of the collective agreement, which expires in 2019. Finance minister signals no pay increases for Alberta unions In addition to job security, the agreement includes extended  leave provisions and more flexible scheduling.

Wage hike triggers food industry divide . Signs announcing price increases and letters to employees slashing benefits have grown rampant in Ontario, revealing two very different approaches businesses have gravitated toward in the wake of province's minimum wage hike .

The food industry is one of the biggest employers of low- wage workers, and a union-backed national movement called Fight For aimed at raising wages has helped spur proposed minimum wage hikes in New York City and Washington, D.C.

He said Monday that companies struggling to cope with the minimum wage legislation have many ways to handle cost constraints and "to pretend that maybe pricing isn't a part of that, I think it would be unfair."

"I think any business having to make decisions would take a look at, is my pricing fair?" Flynn said. "Is this something where I can make a profit, but make sure that the people that I'm paying, the people that I'm employing, aren't living in poverty?"

Those aren't questions all business owners can mull over. Franchisees, for example, often aren't allowed to raise prices.

The Great White North Franchisee Association, a group created last year to give voice to the concerns of some Tim Hortons franchises, has said that without help from their parent company in raising prices among other cost offsetting requests, franchisees have been forced to take steps to protect their business.

In a statement Monday, Tim Hortons head office said franchisees could offset costs by analyzing their top-line sales, operational efficiencies, and savings on equipment and costs such as waste management.

By the numbers: How much will the minimum wage hike cost Tim Hortons?

  By the numbers: How much will the minimum wage hike cost Tim Hortons? The Great White North Franchisee Association says the minimum wage increase will cost the average Tim Hortons franchise $243,889.10 a year Here’s a closer look at the numbers provided by the association, which says on its website it represents 50 per cent of the Tim Hortons chain in Canada. The figure is based on a minimum wage increase of $2.40 an hour The calculation assumes the $2.40 increase will be applied to every worker’s salary. Only employees who were making the previous minimum wage, $11.60 an hour, are legally entitled to the new rate, $14. Some businesses have said the higher rate will inflate their entire payroll because they want to maintain pay differentials between newer hires and more senior staff. The $2.40 rate is bumped up to $3.35 an hour when other costs are factored in. GWNFA says this figure includes Canadian Pension Plan, Employment Insurance, Employee Health tax, workers’ compensation premiums, training costs, sick leave, and increased vacation pay. Increased vacation pay introduced by Bill 148 will only impact workers who have been with a company for five years or more. They will now be entitled to three weeks leave. Average number of employees at a Tim Hortons store: 35 Average increased cost for one full-time employee: $6,968.26 Divided by the hourly cost increase (of $3.35) per employee and a 52-week year, this figure suggests Tim Hortons employees work a 40-hour week.

Food Industry Counsel provides food safety legal and regulatory consulting services exclusively for food industry clients, helping them anticipate, navigate and resolve their most pressing food safety challenges.

Findings contradict UC Berkeley study on Seattle's minimum wage , trigger 'wonk war'. It found that pay for food -service workers increased increased by about 1 percent in the food service industry And as Seattle is being flooded with high- wage tech jobs, the local food service industry is shifting

The statement came days after head office called franchisees who took aim at employee benefits, calling them "reckless" and "completely unacceptable," and said staff "should never be used to further an agenda or be treated as just an 'expense.'"

Pizza Nova CEO Domenic Primucci said restaurant franchises at his chain will pass along the cost of Ontario's new minimum wage rate to customers rather than transfer the brunt of the hike to employees, though he wouldn't say when or by how much.

While he said the legislation has been "contentious" and has started to have an impact on everyone from owners of small mom-and-pop shops to large corporations, "it doesn't affect one more than the other."

"There is not much we can do about it other than accept it and move forward."

Wage hike ripples through Ontario economy .
Nick Cluley and his wife, who have always paid their Coffee Public employees more than minimum wage, have boosted everyone's pay by $1.25 an hour since Jan. 1 — not just those earning below $14, as a new Ontario law required. They did that "to avoid tensions that might come from more experienced people, you know, being crunched right up against the same salary as someone that just started," he said. The new starting wage is $14.75, though the staff average is closer to $15.45, he said, adding they raised prices by about 10 per cent on everything they serve in their Toronto and Port Hope, Ont., shops.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!