The issue of the $15 minimum wage is on everyone’s lips at the moment: politicians, unions, community organizations, employers and employees, with everyone looking out for themselves. However, a recent study by the Canadian Federation of Independent Businesses (CFIB) gives a rather gloomy picture of the consequences of such an increase.
The CFIB examined the impact of a minimum wage at $15 per hour on the population and in each province. Based on the 2016 Statistics Canada Labour Force Survey, the study concludes that young workers would be penalized by this measure. Indeed, 15-24 year olds make up 60% of the workforce paid at the legal minimum.
In addition, the study predicts that between 184,000 to 422,400 jobs in the country would be intended for them, but following the increase they would either be eliminated or they would not even happen.
The CFIB believes that SMEs, mainly in sectors such as sales or tourism, cannot bear such an increase and must therefore hire fewer but more experienced employees, to mitigate this shortage of manpower.
A status quo does not seem to be forthcoming, and community and union organizations are promising that this question will be one of the issues at the next provincial election in 2018, the Journal de Montreal reported in mid-October. In the meantime, other studies will no doubt support arguments on both sides…