The new higher cost of doing business: businesses cry foul at provincial legislation to increase minimum wage.

AuthorKelly, Lindsay
PositionSMALL BUSINESS FOCUS

Currently in its fourth year of operation, Timmins' Radical Gardens was just starting to hit its stride, doing a brisk business at its restaurant, and earning rave reviews for its events and catering services.

And then came Bill 148, the Fair Workplaces, Better Jobs Act, 2017, new legislation which, owner Brianna Humphrey said, will have a devastating impact on her business.

"At this point, we have to restructure to the point where I don't actually know what Radical Gardens is going to look like come the new year, which sucks because our sales are up, and we're on a nice curve upwards; costing is down, everything's looking super good, we can see paying down some debt pretty soon, and we can actually see turning a profit," Humphrey said.

"And boom! We're hit with this whole slew of labour laws."

Introduced by the province on June 1, Bill 148 proposes to update current labour laws to increase Ontario's minimum wage --from $11.40 to $14 per hour in 2018, and up to $15 per hour in 2019--equalize pay among workers, and amend scheduling guidelines, among other changes.

The legislation is not yet law.

Humphrey, who employs just under a dozen people, said the changes amount to a 30 per cent wage increase. Add to that a rise in costs for goods and energy, and she's looking at a 40 per cent increase in operations. Meanwhile, government subsidies to help farmers and agri-food producers have been cut.

The collective result will be a drastic change in how she operates. The legislation calls for $15-an-hour wages, plus five paid sick days, five paid personal days, and she would have to give employees five days' notice before changing the schedule --something that's impossible to do when she relies on a daily weather forecast to plan planting and harvesting at her farm.

Humphrey said she will have to cut staff, will no longer be able to employ students during the summer months, and will likely go back to working 20-hour days just to get the work done and make ends meet.

She fears this could be the end of young, startup farms and agri-food businesses, and the stifling of growth of what was a promising Northern Ontario agri-food sector.

"Most farmers I know have no idea how the hell they're going to do it," she said. "They basically have to go back to familyrun farms or sell...

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