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The Better Way is a group of Canadian Business Owners unlocking the economic power of their businesses with Paid Sick Days + Fair Wages & Scheduling. Join today and unlock the human potential in your business.

Ontario Election 2022: 3 Minimum Wage Myths

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Posted on May 24, 2022

The Better Way Alliance is a group of Canadian Business Owners that support minimum wage increases.

The Ontario election is here & our team at the Better Way Alliance is here to clear up 3 minimum wage myths.

Minimum Wage increases are coming to Ontario.  While some groups will tell you this will have devastating effects – increases to minimum wage often provide people with disposable income they didn’t have before. Read our 3 Minimum Wage Myths below and why increases are generally a good idea.

In the 2022 Ontario Election, the 4 main Political Parties are all making promises about the general minimum wage:

  • Ontario PCs: Follow legislated cost of living adjustment from $15.00 to $15.50 per hour in autumn 2022
  • Ontario Liberals: increase from $15.00 to $16.00 per hour by 2023, and work towards establishing a regional living wage
  • Ontario New Democratic Party (NDP): increase from $15.00 to $16.00 per hour in autumn 2022, followed by a $1.00 per hour increase each year until a $20.00 per hour minimum wage is reached by 2026
  • Ontario Green Party: increase from $15.00 to $16.00 in autumn 2022, followed by a $1.00/hr increase per year for undisclosed number of years + work towards establishing a regional living wage

MINIMUM WAGE MYTH #1: A Higher Minimum Wage Hurts Businesses

The first myth is that raising the minimum wage hurts business.

The truth about minimum wages can be unclear and makes the issue a hot potato. Even at the Leaders’ debates it isn’t easy to clearly understand whether higher wages are good for the economy or not. The truth is, a higher minimum wage is a good thing for local businesses and the economy.  Many businesses have struggled financially because of the pandemic and the prospect of raising wages can be stressful. However, the truth is that most small businesses already paid higher than minimum wages

When a business has to hire new employees every 2-3 months, it ends up costing more than if they had paid $2-3/hr more to retain an employee for longer. Retaining employees for longer saves businesses money because they don’t have to spend more on training new staff as often.

MINIMUM WAGE MYTH #2: Wage costs are the #1 concern for business owners

The second myth is that wages are the number one cost concern for businesses.

Labour costs are overshadowed by worries about rent increases according to a 2022 survey report published by the Better Way Alliance. Survey respondents said that unpredictable increases in commercial rent was their number one cost concern.

In Ontario, commercial rent prices can be increased by any amount at the end of a lease. Insurance costs have increased since the pandemic, adding to this cost stressor. Already cash-crunched businesses can’t afford these rent hikes and either spend money moving or simply shut down.

This problem has gotten worse during the pandemic. So far, only the Ontario New Democratic Party (NDPs) have promised to standardize commercial rent. No other political party has yet put the issue on their election platform – but they should to help protect Ontario businesses.


MINIMUM WAGE MYTH #3: Higher Minimum Wages = Closed Businesses

The third myth is that higher minimum wages cause businesses to close down because they can’t afford wage increases.

This is untrue. In 2018, the minimum wage in Ontario increased from $11.60 per hour to $14.00 per hour. This actually led to a large increase in spending at local businesses. The Toronto Star reported that the wage increase was followed by a boom in employment and an 18-year low in the jobless rate in the province.

Workers who got a pay raise spent their newfound money at local businesses – immediately putting money back into the economy and creating more jobs because of it.


Small business owners need more support for their most important concerns

Many small businesses in the province support a higher minimum wage because it’s just good for the economy. Instead, these businesses want more attention paid to bigger cost worries like commercial rent increases.

Small businesses employ the majority of workers in Ontario and comprise the majority of businesses in the province. They make Ontario communities diverse, livable and vibrant. It is important to ensure that these businesses are supported by government policies that enable them to recover from the pandemic and flourish.

Posted on November 24, 2021

To see the list of signatories or add your business, click here!

An open letter sent to: The Right Honourable Justin Trudeau, Prime Minister of Canada and The Honourable Seamus O’Regan Jr., Minister of Labour

CC: The Honourable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, The Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion, and The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

November 17, 2021

As business leaders from across Canada, we are writing to congratulate you on your new government mandate and offer our support to you in fulfilling your commitment to mandating 10 paid sick days for federally regulated workers.

We support 10 paid sick days for every worker in Canada. Not only is it an essential public health intervention, but we know firsthand as business owners that paid sick days are good for business and the economy.

When you pledged to implement 10 paid sick days federally and convene all premiers to achieve the same across the country, we were encouraged to know that political leadership is committed to a demonstrably smart and effective policy that works for public health and for business.

We’ve all faced challenges throughout the pandemic, with personal and financial losses taking their toll on millions. Let’s make sure we make the most of this opportunity to guarantee paid sick days, greatly mitigating future public health crises.

The small business community is 1.2 million strong. We employ 8 million Canadians. And we are diverse. Diverse in our experiences, our visions, our communities, our languages, our ethnic backgrounds.

Know that for every foreboding prediction about paid sick days policy, there is a small business owner whose business survived the pandemic thanks to a healthy workforce with paid sick days. That for every dire warning, there is a business who boldly decided to offer paid sick days and saw staff loyalty skyrocket. And know that requiring paid sick days for millions of people in precarious work at large businesses will only help level the playing field for small businesses.

You’ve got businesses backing you on paid sick days for all. We are here to share with you our experiences and the research proving the efficacy of paid sick day policies. Kindly let us know when we can meet with your office.

For review: Factsheet: Paid Sick Days are Good for Business

Posted on November 2, 2021

Business owners welcome news of a $15 minimum wage on January 1, 2022, which will put more money in workers’ pockets to spend at businesses in their local economies. This is the absolute bare minimum from a government that cancelled a scheduled $15 minimum wage three years ago.

Small business owners, who are members of the Better Way Alliance, have been paying at least a $15 minimum wage for years. We see the benefits in higher productivity, reduced turnover and increased staff loyalty. It is clear that the economic benefits of increasing the minimum wage far outweigh the potential costs to business. 

Unfortunately, some big companies that have profited from the pandemic refuse to provide decent wages. The business groups that represent those corporations stoked fears that the minimum wage would lead to job losses in 2018, but the economy actually gained jobs. Those same voices are now saying it’s bad timing for business. 

The truth is the pandemic has confirmed that decent work is essential for our businesses and the foundation of a healthy economy. This is exactly why businesses like ours pay decent wages and provide paid sick days.

For small businesses, raising the minimum wage helps to level the playing field. We hope to see permanent paid sick days next on the legislative agenda. Until then, we support this positive move forward.

I will be glad to see a $15 minimum wage. Decent wages help level the playing field for those of us who have made fair wages a priority for years. In my business we have near zero turnover. That’s thanks in part to decent wages. This is good for business. – Anita Agrawal, CEO & Designer, Jewels 4 Ever and Best Bargains, and Professor, School of Business, Centennial College, Toronto

At my bakery, staff work hard and long hours. Fair wages are essential. $15 per hour is the bare minimum. I’m confident that small and big companies alike will benefit from offering better wages. – Jessica Carpinone, Owner, Bread By Us, Ottawa

To arrange interviews, contact Gilleen Pearce at 416-906-5554.

The Better Way Alliance is a growing movement of businesses supporting decent wages, paid sick days, and fair scheduling laws. Decent work is good for business. Our members employ more than 30,000 Ontarians. Industries represented include services, retail, food and hospitality, and manufacturing.

Posted on April 29, 2021

STATEMENT – Small Businesses Disappointed in Inadequate and Unfair WIPB Plan

April 29, 2021

We are small business owners who have been providing paid sick leave since before the pandemic, some since the day we opened. We are disappointed to hear that the Ford government’s plan only includes three days, a wholly inadequate number even in the absence of the Covid-19 pandemic.

We are especially dismayed to learn that not only will large companies who don’t need the help be paid out of taxpayer funds for these days, but any small business owner who already has a paid sick day allowance in place will not be similarly reimbursed.

We have repeatedly called for a legislated paid sick leave scheme as a way to level the playing field for small businesses trying to compete with ultra-profitable mega corporations. The plan announced yesterday tilts the playing field even more unfairly against us. It rewards those corporate giants who refused to provide paid sick leave until they were forced to while penalizing the small businesses that have been doing the right thing – many since long before this current pandemic.

By focusing on the wrong criteria, the Ford government is enhancing corporate subsidies at the expense of small businesses and working Ontarians, many of whom are employed by the small businesses who are again being left behind by this government.

Whether a company offered paid sick leave prior to the introduction of this plan is irrelevant to whether they need financial support now. Targeted financial support should be available for businesses with actual need: small businesses, with much thinner margins and lower revenues than the big chains who have profited off of this pandemic and are yet again being rewarded at our expense.

We will continue to do the right thing and provide paid sick leave for our staff – it’s good for our businesses, our communities and the economy. But the fact that small businesses like ours have been again sacrificed in order to prioritize the interests of corporate giants shows that it was never “burden on small business” that this government was worried about.

Small businesses have had to bear the brunt of many of the corporate-friendly actions of this government throughout this pandemic, and this is another example.

About the Better Way Alliance: The Better Way Alliance is a growing movement of businesses supporting decent wages, paid sick days, and fair scheduling laws. Decent work is good for business. Our members employ more than 30,000 Ontarians. Industries represented include services, retail, food and beverage, and manufacturing.

Click here for this statement in pdf.

Posted on April 28, 2021

STATEMENT – Small Businesses Need the Government to Legislate Paid Sick Leave

April 28, 2021

As small business owners, we are exhausted from trying to keep our businesses afloat through this pandemic. The refusal of the provincial government to do their part to keep Ontarians safe is actively worsening our struggle and hurting our communities.

We provide paid sick leave for our employees because we know it is good for the health of the community and good for our local economies. The Minister of Labour has said his government is choosing not to legislate paid sick days because of concern about the burden on small business. The burden to us is not in providing paid sick leave, but the fact that large companies reaping huge profits do not.

We need clear and meaningful action on paid sick leave from the provincial government now. Legislated, employer-provided sick leave is the only way to keep Ontarians safe and it’s the only way to level the playing field for small businesses. If this government wants to help small businesses survive, it will follow our lead and legislate paid sick leave so we can end this pandemic.

About the Better Way Alliance: The Better Way Alliance is a growing movement of businesses supporting decent wages, paid sick days, and fair scheduling laws. Decent work is good for business. Our members employ more than 30,000 Ontarians. Industries represented include services, retail, food and beverage, and manufacturing.

Click here for this statement in pdf.

Posted on February 10, 2021

In an online press conference today, business owners from across Ontario came together today to call for the provincial government to legislate guaranteed paid sick leave for all workers. Small and mid-sized businesses know firsthand that paid sick days are good for their business, employees and communities. They are urging MPPs, who are set to return to the legislature next week, to pass Bill 239, Stay Home If You Are Sick Act, which would provide 7 permanent paid sick days and an additional 14 days during public health emergencies for all workers.

This government has cited small business interests as an excuse to avoid mandating a minimum standard for paid sick leave. In fact, paid sick days are not only a public health imperative, but make good business sense. The cost of providing paid sick leave is minimal compared to the cost of outbreaks or the cycles of lockdowns and restrictions, which will continue as long as workers without paid sick days have no choice but to go into work sick.

After providing paid sick days for years, business owners see firsthand how it reduces turnover by keeping talented and dedicated staff and making sure they are able to do their best work when they come in. It also builds morale that translates into strong, loyal relationships with customers and clients. The real challenge facing small and mid-sized businesses is competing with large, ultra-profitable companies that don’t provide paid sick days. By legislating a guaranteed minimum standard for all workers to count on, the government can help level the playing field.

Quotes:

“Paid sick leave for all Ontario workers is the smart thing to do for business. The difficulty right now is some businesses offer paid sick days, some don’t. As a business owner, if I’m providing paid sick leave to my staff member, I’m paying a little bit more than the bigger companies that aren’t paying enough. And, illnesses like COVID-19 continue to spread. We can’t wait any longer to make sure the floor is brought up to where everybody gets paid sick leave.” – Helmi Ansari, co-founder and CEO of GROSCHE International inc. based in Cambridge

“I implemented paid sick leave from the start so that people could stay home when they’re sick and take the time they need to get better. If someone comes in sick, everyone gets sick and it’s a horrible cycle. Providing paid sick days protects against this. It means a better experience for customers and employees. And there’s been no negative impact on my business. The real challenge is competing with huge companies who aren’t playing by the same rules. I’m sick of small business being used as an excuse not to bring in paid sick days.” – Sam Conover, owner of Broad Lingerie in Toronto

“Small business margins are very thin, so I do worry about not being able to pay the bills. But providing paid sick leave allows me to operate without the fear of what would happen if we all contracted COVID. Workers who are encouraged to take care of their health and given the necessary tools to do so are also loyal. My employee turnover is almost non-existent, which is a huge savings for my bottom line.” – Jessica Carpinone, co-owner of Bread by Us Bakery in Ottawa

“At Neal Brothers, my brother Chris and I have always believed in supporting our whole team in any way we can. We were raised with that notion of ‘do unto others as you would have do unto you’. Fundamentally, we know that supporting our employees builds a positive culture of trust, respect and loyalty. This is why we believe in supporting paid sick days, which has never been more important than it is now.” – Peter Neal, co-founder of Neal Brothers Foods.

Bios:

Helmi Ansari is the co-founder and CEO of GROSCHE International inc. GROSCHE is a small business based in Cambridge Ontario that started in the basement of their house and has quickly grown to be one of the top brands in coffee and tea ware in North America. They are a Carbon Neutral, and have been paying their staff a living wage since 2014 and are the first multi-site living wage employer in Ontario.

Jessica Carpinone is a co-owner of Bread by Us Bakery in Ottawa, a bakery and coffee shop with a particular focus on sourdough bread. She began working in professional kitchens in 2011. During that time, she developed an analysis and understanding of the challenging and often unfair working conditions that undermine the food industry. Opening Bread by Us has been an opportunity to explore alternative approaches to building a food business based on values of cooperation and shared prosperity.

Sam Conover is the owner of Broad Lingerie, a Toronto specialty lingerie store for full busted folks. Sam is passionate about creating positive retail experiences for both customers and staff. Sam’s pronouns are she/her.

Peter Neal is one of the co-founders of Neal Brothers Foods and oversees Neal Brothers’ Brand Development, Marketing, and Sales. When away from his desk, he relentlessly pursues the world looking for ‘what’s next’ in the food industry to delight Canadians. Peter is also very passionate about supporting mental health initiatives in his community as they were there to support him during his own mental health journey.

Click here for a pdf copy of the press release.

Click here for a 2-page fact sheet on why paid sick leave is good for business!

 

About the Better Way Alliance: The Better Way Alliance is a growing movement of businesses supporting decent wages, paid sick days, and fair scheduling laws. Decent work is good for business. Our members employ more than 30,000 Ontarians. Industries represented include services, retail, food and beverage, and manufacturing.