Ontario Minimum Wage Increase Would Affect Fresh Produce Production
There is a growing concern that minimum wage hikes in Ontario could drastically hurt fruit and vegetable production in the province.
Effective June 1, 2014, the general minimum wage in Ontario is going to increase from C$10.25 to C$11.00 per hour, according to a government news release. This increase is said to account for inflation since the last minimum wage increase back in 2010. Future minimum wage increases are planned, which will tie the wage to the Consumer Price Index, in order to account for future inflation as well as to "ensure the minimum wage keeps up with the cost of living, and that increases are predictable for businesses and families."
Ken Forth, a spokesman for the Ontario Fruit and Vegetable Growers Association, says that growers in Ontario are "terrified" by the idea that the minimum wage could be raised significantly, according to Canada-based Blackburn News.
It is already difficult, he says, for farmers who are struggling to pay the current minimum of C$10.25 per hour. U.S. wages are already 10-20% lower than that, and in Mexico, workers are paid $8 for a 12 hour work day. Farmers in Ontario get the prices the market will pay, and this means they must remain competitive with the U.S. and Mexico.
A higher minimum wage could significantly impact the viability of the Canadian fruit and vegetable industries. Forth's prediction is that farmers will quit the business and sell off their land for corn and soy production if the minimum wage goes very much higher than the current level.
Will these increases have the outcomes predicted by Forth? Will farmers go out of business? Stay tuned to AndNowUKnow as we continue to cover this story as it unfolds.
Canadian Government's Announcement
Blackburn News
