Worth Repeating

I think Rick Mercer speaks for many of us in this 'rant.'

Double Double, Toil And Trouble: Star Readers On Tim Hortons And The Minimum Wage Hike

As always, the letters from Star readers do not disappoint:

I am really finding it difficult to empathize with businesses like Tim Hortons crying over the minimum-wage increase. The fact that these businesses are paying minimum wage in the first place demonstrates a corporate greed that supersedes any dignity and respect for their employees that serve the coffee and make the sandwiches that generate billions in earnings. Tim Hortons is no longer Canadian and I feel we shouldn’t be as loyal to a brand that does not project Canadian values. Were businesses expecting the minimum wage to stay the same forever?

Brad Globe, Whitby

I would gladly pay more for my coffee and doughnut to make possible the continued care of Tim Hortons’ fine staff – as they have cared for me and my family and friends for so many years and in so many places.

I don’t want to leave Tim’s comfort and kindness for some cold and trendy café staffed by constantly changing temps. Tim’s is one of my homes, where I always feel welcome and safe.

Please find a way to reward these wonderful workers for their dedication and loyal service, and you can count on my continued and loyal patronage.

Susan McMaster, Ottawa

Pick a fight with me Mr. Joyce, not workers; and Small business owners are not the bullies here, Opinion, Jan. 7

We strongly disagree with Dan Kelly, president of the Canadian Federation of Independent Business, when he suggests the minimum-wage hike is about “election optics.”

Small businesses are the backbone of Ontario’s economy and therefore a powerful political base. Thus, if Premier Kathleen Wynne is indeed “shaming” small businesses, she is actually risking political suicide. We applaud her for courageously putting the quality of life of everyday Ontarians above the Liberals’ political gains.

As small business owners for 34 years, we have always paid our employees well above minimum wage. In profitable years, we have rewarded them with year-end bonuses. As Wynne aptly argues, “it’s the right thing to do.” Profiting from those who struggle to make ends meet is not good business, it is abuse.

For those small-business owners who truly cannot afford to pay a living wage, you have our sympathy. It takes courage to accept the risks inherent with starting a business. However, if your success depends on the failure of your employees to make ends meet, then you cannot be truly successful.

For those small-business owners who are financially able to but refuse to pay their employees a living wage, shame on you.

Mr. Kelly, as “courageous” business owners, we would indeed love to tell the premier what her $15 minimum-wage plan means for our future and the future of our employees: business as usual.

Gerald and Shelley Grieve, Gerald Grieve Landscape Group

UPDATED: Despite The Hysteria The Sky Will Not Fall

In an op-ed piece the other day, Dan Kelly, president of the Canadian Federation of Independent Business, wrote of the economic Armageddon awaiting Ontario businesses thanks to the recently-hiked Ontario hourly minimum wage to $14, to be increased to $15 next year.

While no one can fault Kelly for pandering to the interests of his constituents, his arguments apparently carry little weight with the larger public, who see nothing but good coming from paying a living wage to the people who make profits possible for our titans of business.

Star letter writer Tom Doris of Toronto offers his response:

Dan Kelly has the misguided attitude that any business creating jobs must be considered a successful business and be left alone by government despite poverty wages, denied tips and no job security for its workers.

Indeed, his arguments lead me to conclude that his membership has not the capability to create vibrant, living-wage jobs. As well, he appears to be insistent that workers in this province should be thankful for any position no matter the wage, treatment or security.

By contrast, jurisdictions throughout the western world have thriving small businesses that pay living wages (not just a sham attempt at such). He and his membership need to learn how to be successful without exploiting workers.

Meanwhile Ken Fitzsimmons of Toronto has a clear-headed suggestion that that could quell Mr. Kelly's rising hysteria:

Dan Kelly doesn’t get much sympathy from me.

His examples of businesses that are paying the price for the increase in the minimum wage are dry cleaners, coffee shops and mechanics. Seriously? That’s ridiculous. All these shops have to do to cover the increased expense is to raise their prices. Now, don’t try to tell me that this will make them uncompetitive. All their competitors are in the same situation and will have to raise their prices as well. The people that will actually bear the cost are the customers themselves and that is as it should be. It is a small burden to pay so that all employees can have at least a half-decent wage. The extra cost would be minimal as it is spread out among the general public, not the business owners.

Having said that, there are businesses that will suffer and I do feel sorry for them and they should be given some consideration. They are businesses such as retailers that compete with online business that don’t have the same employee expenses. It’s also tough to compete with low wages from other countries, but that doesn’t give employers the right to keep wages low in Ontario. There are other ways to combat unfair labour practices abroad.

Sure there are problems to be resolved, but this outcry from a lot of business groups that the sky is falling is mostly just nonsense.

One line from the above letter bears special emphasis: The people that will actually bear the cost are the customers themselves and that is as it should be. It is a small burden to pay so that all employees can have at least a half-decent wage.

Anyone taking issue with that sentiment should at least be honest enough with themselves to admit they prefer that some toil away in economic enslavement so they don't have to pay a little more for the things they want and need in life.

UPDATE: For those interested in making their voices heard over some of the despicable retaliatory practices being enacted by business, I just got this notice from LabourStart Canada:

SOLIDARITY RALLIES FOR ONTARIO TIM HORTON'S WORKERS ON WEDNESDAY

On the heels of the $15 and Fairness campaign victory in Ontario that saw the minimum wage rise to $14/hr a number of Tim Horton's shops are cutting worker benefits, breaks and other entitlements. Employers are preserving their profits by making workers pay for the increase.

But you know this because you read our news pages and follow our social media feeds. So let's cut to the chase.

If you live in Southern Ontario then on Wednesday you have 3 demos in support of the Timmy's workers to choose from (OK, there may be more by the time you read this so contact your local Labour Council. If there isn't one near you suggest it):

COBOURG: 5pm @ the Timmy's at 970 Division St, Cobourg, Ontario K9A 5Y5.

DUNDAS: 5pm @ the Timmy's at 38 York Road, Dundas. L9H 1L4

WEST TORONTO: 8am @ the Tim's at 1094 Bloor West M6H 1M5

If you are at the Cobourg demo look for me. I'll be wearing an Australian union toque and scarf. I'll buy you a coffee if we can find a place. :-)

Not an Ontario resident? Wish us luck because, unless you live in Alberta where the rate has already gone up, you'll be facing the same, soon. If we can win this it might just be a little easier for everyone else.

In Solidarity,

Derek Blackadder
LabourStart Canada

UPDATED: You Get What You Pay For

That fundamental truth is grasped by two small-scale entrepreneurs, much to the shame of much larger entities like Tim Hortons which, as widely reported, are taking out their outrage and venality on their employees.

Gilleen Witkowski, who operates a dog-walking business in Toronto, has this to say:

“I’m a millennial and my whole working life, the minimum wage was frozen or close to frozen. That’s my context,” says the 32-year-old co-founder of Walk My Dog.

“I’ve seen people attempt and fail to make a living on just minimum wage, and watched people struggle in the new economy to get good jobs with their degrees.”

Her decent work strategy, she says, has proved a success.

“I totally understand the concerns around cost because I am a small business now. But I think the benefits outweigh the cost. The loyalty I’ve seen from my staff is incredible.”

“It’s doing the right thing, but there are tangible benefits and that is my low turnover,” she added.

Those truths were something that took Damin Starr longer to discover. Originally employed by his hard-nosed father, who taught him that the bottom line is the only thing that really matters, Starr eventually started his own company, PreLine Processing, and retained his father's chief tenet,

leaning heavily on minimum wage temp agency workers.

The epiphany, he says, came when he returned from Toronto having secured a $40,000 contract, only to find $10,000 worth of mistakes on his shop floor in Lincoln, Ont.

“I was working all sorts of extra hours because I had inexperienced workers making mistakes,” he says. “I’m not blaming the workers. I blame myself. What a miserable environment I had.”

After sitting down with his permanent employees, Starr made some 'radical' changes:

... [H]e dumped temp agencies and ramped up wages. Together with his employees, he calculated a living wage for his region — which in 2012, he figured to be $15 an hour.

“We decided that you couldn’t work for us for less,” he said, noting his base rate is now more than $17 an hour.

“People were thrilled with the fact that there was a commitment to ensure that nobody wouldn’t be able to pay their bills at the end of the day,” he added.

“Something occurred during that time that made me proud of the business and proud of the staff.”

Change is never easy. However, despite the loud protestations of some businesses, it seems that treating one's workers with respect and dignity is not the money-losing proposition the reactionary right would have us believe.

UPDATE: Still not convinced? Take a look at what Ivan Gedz is doing in Ottawa for his restaurant employees:

A Centretown restaurant is boosting base wages for its kitchen crew to $16 an hour, a move that will affect half-a-dozen staff while making a “negligible” difference in prices for customers, its co-owner says.

Corporate Crocodile Tears: A Guest Post

In response to my post yesterday about CBC bias in its reporting on Ontario's minimum wage increase, the Mound wrote a detailed commentary that I am featuring today as a guest post. Following his piece I reproduce a letter from a Star reader pillorying corporate hypocrisy.

"Government should function on the expectation that corporations will act in their own economic self-interest." That point is inarguable. The corporate self-interest, however, has to be subordinated somewhat to the public interest. The political caste is elected to represent the public who voted them into power and those voters who preferred someone else. They are not elected to put corporate interests ahead of the public interest but to balance the conflicting needs of labour and capital recognizing, as Lincoln said, that "labour is by far the superior."

That principle, stated by Lincoln, is especially relevant today in this era of early-onset automation that is going to become a more dominant factor in our industrial economy. Galbraith addresses this in "The Predator State."

Ours is a consumer economy and there's really nothing else we can substitute for that. The corporate sector collapses without access to markets sufficiently large to purchase and consume their wares. Henry Ford knew that it was essential that his workers earned enough to be able to afford to buy his cars.

Commerce today engages in nihilistic pursuit of unsustainable profits at the expense of even its own mid- and long-term interests. Executive compensation is based on what the company takes in today, not how it may be positioned to fare in the next decade or the one after that.

A month before the Republican tax cuts were passed, corporations were gearing up for the anticipated windfall. They weren't hiring new employees or adding additional machinery, they were organizing share buy backs. They were using the newfound money to buy back outstanding shares sending share prices soaring, hence increasing executive compensation. And the US government is funding this nihilism with an additional 1.5 trillion in borrowings. Call it "the art of the deal."

In the era of globalism our neoliberal political caste thought they could finally wash their hands of responsibility for the balancing of public and private interests, delegating this fundamental responsibility to "the invisible hand of the marketplace." Only that hand no longer works as they fantasize.

We think fondly of the era of Pearson and Pierre Trudeau, the vision they brought to our country. That began to wane under Mulroney and Chretien but it was crushed under Harper and, sadly, now Trudeau the lesser. Now when we desperately need leaders of vision again, leaders who can navigate us through these enormous challenges of the day, that quality is no longer on offer.

And from Robert Bahlieda of Newmarket:

Starting salary for top CEOs? $2,489 an hour, Wells, Jan. 2

Kudos to Jennifer Wells for exposing the other side of the coin. The sadness of the headline is that we have all accepted and internalized the bizarre logic of capitalism and can see no way out. We read the article and then move on.

The logic of a free market is to convince everyone that extreme wealth is good and necessary, so extreme relative poverty must be its alternative. But even here, there is deception. This is reflected in the salaries of CEOs and of the minimum wage for workers. The $14 minimum wage is held out as either a pariah or a godsend.

The business community warns of job losses while it pays its CEOs handsome salaries and perks. But if paying a living wage is that critical, businesses that are stretched so thin should close their doors. The whole point of business is not to create wealth for the business but also a good quality of life for workers. If businesses cannot pay good living wages, health care, pensions and other basic aspects of daily living, they should not be in business. It’s a false capitalist logic to say we can only operate on minimum wages while profits are booming and the senior suite is golden.

CEO salaries are the same. They have increased every year for the past 40 years while workers’ wages have remained stagnant. Everyone knows this lie. The Credit Suisse Global Wealth Report (2016) noted that the top 1 per cent owned more than half of the worlds’ assets and the bottom half owned virtually nothing.

The real irony is that taxpayers are paying for the minimum wage and CEO increases. The federal government is cutting small-business taxes by 0.5 per cent immediately and another 1 per cent cut is coming. They have also modified the corporate tax penalty on small business to make it non-existent. Provincial governments have chipped in cash to ease the transition as well.

But still the wailing and gnashing of teeth goes on in the business community. So stop the whining and change the system.

UPDATED: A CBC Bias?

I will be the first to admit that I get only modest amounts of my news from television. However, due to the severe cold we have been experiencing for too long here in Ontario, I have been doing very little walking, usually a mainstay of my daily routine. To compensate, I have been spending some time downstairs where I have a small treadmill and other exercise equipment. Because of exercise's intrinsically boring nature, I have taken to watching CBC News Network. Because I am not a regular viewer of such news sources, please bear in mind that the following is only my impression and may, in fact, be a distorted perception of what the network is offering.

My sense is that there is a real effort on the part of the network to placate the right-wing. Two stories, although perhaps too small a sampling to demonstrate a genuine pattern, suggest this. The first, an interview also placed on the CBC's website, examines the impact of minimum wage increases that took effect in Ontario on January 1.

Farmer Kevin Howe of Howe Family Farms in Aylmer, Ont., a small business that has been in operation for five generations, said he's already reducing the amount of crops he plans to plant this year, and fears he won't need as many workers because consumers won't be willing to pay the higher prices he'll have to charge to cover wage increases.

"Costs are always going up and we need to be able to pass these costs on to stay in business," he told CBC News in an interview Tuesday.

Some summers he hires up to 400 people to pick his strawberry crop, but this year there will be far fewer hours available as the farm has reduced its strawberry acreage by 30 per cent as a precaution. "It's definitely going to impact the amount of work available," he said. "It's going to make for shorter days [and is] definitely not going to be good for the community."

While Andrew Nichols certainly offered a sympathetic ear to young Kevin Howe, notably absent was any offer of a countervailing view by Nichols, for example, the fact that most economists seen the increase as ultimately yielding a net benefit to business because of the increased buying power customers will have. The host, instead, seemed content with feeding Howe leading questions that bolstered his position.

Not yet convinced that this is anything more than a particular host's handling of an issue? Then take a look at the following, in which Diane Buckner interviews Ian Lee, a professor at the Sprott School of Business. Start at about the 2:12mark, when they begin to duscuss the disgraceful behaviour of Coburg's Tim Hortons, bullying behaviour that now appears to be spreading.



You will note that while Buckner gamely sets up the story with a context that might provoke some anger at the franchisees' mean-spirited actions, and attempts to provide balance throughout the interview, Lee's sympathies clearly lie with the owners and their massive profits. For him, the costs entailed by labour seem to be one of those unfortunate and dirty realities to be lamented as loudly as possible. Indeed, he even goes so far as to claim, at the end of the piece, that the wage increase will result in 60,000 layoffs, an absolute misrepresentation of the Bank of Canada report. Clearly, the CBC knew what they were getting when they hired Ian Lee to occupy a pundit's perch.

My final evidence for CBC bias is an opinion piece by
Robyn Urback, a columnist for the National Post who was hired in 2016 to write and produce for the CBC's Opinion section. Entitled Of course businesses would act like businesses in wake of minimum wage hikes her view is also one of total sympathy for business owners.

Businesses exist to make money. Government should function on the expectation that corporations will act in their own economic self-interest. Instead, in the case of Ontario, officials feign shock and outrage when a business tries to maximize profits, and release silly statements like the one Premier Kathleen Wynne did Thursday afternoon, accusing one of the vacationing Tim Hortons heirs of being a "bully" for eliminating paid breaks and other benefits.

Sure, eliminating paid breaks is not very nice. But what, exactly, did the premier think was going to happen? Employers would just absorb the added costs? Dip into their own personal profits? OK, and maybe my prom dress still fits, too?

The article goes on in a similar vein for some time, but I imagine you get the flavour of it from that excerpt.

So is our national broadcaster providing fair and balanced coverage of a crucial social and economic issue? My guess would be it is not. For that, you may wish to go to this piece entitled Relax, Ontario’s minimum wage increase will not lead to massive job losses, found on the Vice website, or this thoughtful essay by Michael Coren entitled Why Tim Hortons doesn’t deserve your sympathy, on the TVO website.

UPDATED: The Hamilton Spectator's Deidre Pike also has an interesting reflection on minimum wage increases.

Too High A Price To Pay

This year, The Star has been running an Atkinson Series entitled The New Newsroom, which looks at both the challenges and the possibilities facing journalism in this age of Internet freebies. It is an excellent series that I hope you get a chance to check out. Here is an excerpt from a recent installment and the theme of today's post:

When the news industry and its supporters seek government funding to give it time to find a new business model, it’s because of the role news plays in maintaining a strong society — protecting democracy, in the phrase often used. If we don’t know what our governments are doing, we don’t control them. If we don’t know that hospitals have long waiting lists, we can’t find a solution. If we don’t know a development is planned, we can’t fight to protect the green space instead. Without information, we can’t have knowledgeable conversations with each other. We don’t have a voice. Our communities then belong to the powerful.

It is one of the key reasons I subscribe to The Toronto Star, which has a remarkable record in effecting change at the local, provincial and federal levels thanks to its many investigative reports. Without those investigations, public awareness of problems and injustices would have been quite limited.

To read a daily newspaper is to facilitate something all citizens should have: critical thinking skills. Without those skills, and without the information needed to inform those skills, we really are at the mercy of forces that would prefer us to be in darkness so they can carry out their agendas, agendas that rarely coincide with the public good. A column today on increases to the provincial minimum wage by provincial affairs reporter Martin Regg Cohn amply illustrates this fact.

Despite the scare stories, a proposed $15 hourly wage in 2019 is proving wildly popular. By all accounts, it is a vote-winner.

The usual suspects are upset: TD Bank, Loblaws, Metro, the Chamber of Commerce and the small business lobby are warning higher wages will hit hard, and hurt the working poor by costing them jobs.

It’s a recurring tale of two competing victimhoods — businesses at risk and jobs in jeopardy — but people aren’t buying it. The old fable about the boy (or business) who cried wolf is a hard sell when few believe the wolf is at the door.

Were the business perspective our sole source on this issue, we would likely be inclined to believe the hike is going to wreck our economy. Having a countervailing view assists us in making a more measured judgement. And, as Cohn points out, there are other factors to consider here, such as societal consensus:

Perhaps people are waking up to the impact of poverty amidst plenty. And are prepared to pay more at their local Dollarama — rebrand it Toonierama if need be.

Canadians who were content to live alongside the working poor are increasingly sensitized to the argument for a living wage. Times change.

For the longest time, people put up with second-hand cigarette smoke, drove while drunk, forgot their seat belts, or sneered at nerds who wore helmets for motorcycling, cycling, hockey or skiing. Now, cigarettes are taboo, drunk driving is anathema, seat belts are the law, and helmets are de rigeur.

Add to that some hard facts that demonstrate the one-sidedness of the business argument that the sky will soon fall:

A previous column about the business lobby pointed to the flaws in outdated econometric modelling that vainly tries to foretell future job losses from doomsday scenarios. Their conclusions are contradicted by more advanced research that looks retrospectively at recent history, showing negligible or unmeasurable impacts from minimum wage hikes.

Yet major retailers keep warning that automation is the inevitable result of higher wages. Been to a Loblaws, Sobeys, or Canadian Tire recently? Seen those automated check-out counters, even at today’s minimal minimum wage?

Automation is inevitable. Lowering the minimum wage won’t bring back full-service gas station attendants, or persuade the banks to remove automated tellers from your local branch.

Economic disruptions are also unpredictable. Even if business scaremongering about a wage hike were remotely true (at the margins), the reality is that a rapid increase in interest rates would have far more impact, as would a collapse in the housing market.

We all have our biases and values. The fact that I subscribe to The Star attests to mine. However, I also am free to reading countervailing views from conservative and pro-business organs like the National Post and The Globe and Mail, and frequently I will not dismiss out-of-hand some of their perspectives. The point is, however, that the more information I acquire from a legitimate news source, as opposed to fringe Internet sites that feel no obligation to abide by the rules of evidence and reason, the more equipped I am to draw reasoned conclusions.

Journalists do the heavy lifting for all of us. To lose them would be to lose any chance to have a healthy and sustainable democracy. That is surely too high a price to pay.

An Inconvenient Truth The Corporate Agenda Would Like To Keep Hidden

Their protests notwithstanding, the truth is that raising the minimum wage is good for business. And it isn't just the behemoths depicted above who benefit.

The CEO of a popular fast food chain said this week that he was “stunned” to see profits soar each time California passed minimum wage increases.

In an interview with KQED on Tuesday, Wetzel’s Pretzels CEO Bill Phelps admitted that his investors were worried about how a 2014 wage hike would impact the business.

“Like most business people I was concerned about it,” Phelps said.

For years, opponents of minimum wage increases have argued that wage hikes mean fewer jobs because businesses have to raise prices and cut hours to cover the additional expenses. But Phelps said that his sales skyrocketed after a California law forced businesses to raise wages in 2014.

While business reflexively condemns any wage increases as devastating job-killers, Phelps came to understand a basic economic truth: when people, especially those in the lower echelons of society, have more money in their pocket, they tend to spend it.

Mike Jacobs, owner of a Wetzel’s Pretzels franchise in Concord’s Sunvalley Shopping Center, told KQED that the increased business can be attributed to the fact that his customers are making more money.

“My overall sales were something like 15 percent ahead after the first minimum wage bump, and now they’re about 12 percent ahead this year,” Jacobs explained. “It isn’t because I’m such a great manager or smart guy, but the buying public has more money in their pocket.”

Expect this information to fork no lightning with the neoliberal set, who hew to scare stories that support their greed. And in that pursuit, they have a strong ally in Andrew F. Puzder, Trump's pick for secretary of labour and a staunch opponent of minimum wage increases, who says,

I’m opposed to raising it to the point where lower-skilled workers, working-class Americans, young people, minorities, are losing the jobs they need to get on the ladder of success.”

Try telling that to the employees at places like Wetzel’s Pretzels and In-N-Out Burger, which I wrote about last March after our visit to Southern California.

But of course, I forget myself. We are about to enter, with the Trump presidency, an era where truth and facts mean little.

Andrea's Damascene Moment

In the Book of Luke, Jesus is reported to have said the following:

I tell you that ... there will be more joy in heaven over one sinner who repents than over ninety-nine righteous persons who need no repentance.

In Acts of the Apostles, Paul's conversion on the road to Damascus is described:

As he neared Damascus on his journey, suddenly a light from heaven flashed around him. 4 He fell to the ground and heard a voice say to him, “Saul, Saul, why do you persecute me?”

5 “Who are you, Lord?” Saul asked.

“I am Jesus, whom you are persecuting,” he replied. 6 “Now get up and go into the city, and you will be told what you must do.”

The pure of heart might indeed feel that those passages resonate when contemplating Ontario NDP leader Andrea Horwath's recent conversion to the belief that the minimum wage should be $15 per hour, latching on to a movement that has been gaining a great deal of traction over the past few years.

The more cynical might be inclined to see Ms. Horwath's new stance as rank political opportunism. Consider, for example, how she felt about such matters just two years ago:

"Well, look, I respect the work of the grassroots movements that have been calling for the $14 minimum wage, but I think that what our role is right now is to consult with families that are affected, as well as small business particularly that’s also affected”.

At about the same time, Ms Horwath was calling for the Ontario minimum raise to rise only to $12 per hour in 2016.

Apparently, however, she has some people fooled by her newfound allegiance to the working poor, as is evident from this Star reader's letter:

Raise the minimum wage, Letter April 11

At a recent speech for the Broadbent Institute, Andrea Horwath publicly demonstrated that her party has finally seen the light on a $15 living wage.

Her announcement is all the more noteworthy in a week when the North American Fight For $15 campaign had some rather momentous victories south of the border.

Governor Jerry Brown stared down the powerful business lobby within his own California Democratic Party to sign into law a path to $15 per hour. In New York Governor Andrew Cuomo stood up to Wall Street fear-mongering and signed the Empire State’s own $15 minimum wage law.

So the question for Ontarians, in a week awash in reforms and revelations, is whether any other party leader in Ontario will stand up to Bay Street bullies and bring Ontario standards into the 21st century by finally ending the shameful institution of government sanctioned working poverty.

If we can trade carbon with California can’t we also trade good ideas or will Ontario, California beat our Ontario to $15?

Mike Vorobej, Ottawa

I have never been a member of a political party. Perhaps if the day ever comes when I detect a leader acting out of principle and integrity instead of rank political expediency, I may join one.

Now This Is The Kind Of Story I Like To Read About

The opportunity to report about something positive in the kind of blog I write is rare. For example, while reports abound of corporate theft and paltry remuneration for the workers that make big profits possible, less common is a story about a business doing the right thing. Well, here is one such story.

All through the night, the workers at Nebraskaland Inc., a meat distributor in the Bronx, roam the alleys of a cavernous warehouse, piling boxes of beef and chicken onto pallets in subzero temperatures. Until last year, many were paid $10 (U.S.) an hour, a little above the minimum mandated by New York State.

Then Richard Romanoff, the company’s owner, saw a news segment about a movement started by fast-food workers to push the minimum wage to $15 an hour. “I’m going to speak straight with you, my managers wanted to get people as cheap as they could,” Mr. Romanoff said. But something about the idea “really clicked,” he said. Last summer, Nebraskaland began gradually increasing the lowest hourly wage at the company, which will hit $15 at the end of this year.

One can rightly ask if we are witnessing a growing momentum in the movement toward raising minimum wages, a movement that captured not only Romanoff's but also national attention a few years ago when marches and strikes began in the fast-food industry to raise wages to $15 per hour. And it seems to be getting results:

In the past week, two of the most populous states in the country – California and New York – enacted legislation to raise the minimum wage to $15 within six years. Major cities, such as Seattle, Los Angeles and San Francisco, have pledged to increase their minimum wage to $15 in steps. In Portland, Ore., the minimum hourly pay will rise to $14.75.

It would seem that some employers are starting to get the message, and they are putting the issue into propoer perspective:

At Nebraskaland in the Bronx, Mr. Romanoff said roughly half of his 250 workers are benefiting from the wage increases, at a yearly cost to his company of about $350,000. “You pretend it’s an increase in rent, or electricity – you deal with it, one way or another,” he said.

Meanwhile, the number of applicants for job openings has quadrupled as news of the pay hikes spread.

Mr. Romanoff acknowledged that for some industries – including some of his customers, like supermarkets – such increases would be a challenge. “I just know for me, why wouldn’t I do it if I can afford it?”

Enlightened business leadership is a term I usually use ironically. I am happy that at least for today, I can speak of it literally.

A Little Hard To Swallow

Despite the fact that I think and write a great deal about the disparities and inequities that plague our society, I am almost embarrassed to admit that until now, I had never heard of something called The Big Mac Index, launched, according to a recent article in The Star, in 1986 as a “lighthearted guide” to global purchasing power.

While its original purpose was as a tool to make exchange-rate theory more digestible, it has also become a barometer of purchasing power. In Britain, for example, which currently has a minimum hourly wage of ₤6.70, it would take 26 minutes of minimum wage labour to buy a Big Mac. That country has a target minimum wage of ₤9 by 2020, at which level it would take only 18 minutes to make the purchase. How does this compare with other countries?

Denmark is well ahead of the pack at a current 16 minutes. Australia: 18 minutes. France: 25 minutes.

Canada? A chart in the Financial Times shows our country at 33 minutes, which closely equates to a minimum-wage worker in Toronto, at $11.25 an hour, paying $6.10 for two all-beef patties, special sauce, etc. That same worker can look forward to a Dickensian 15-cent-an-hour increase come October.

This is not good, and our country could ultimately become an unenviable outlier when it comes to fair compensation, since the movement for increasing the minimum wage is gaining momentum in many jurisdictions:

Last Thursday, California passed a six-year phase-in to a $15-an-hour minimum wage — a landmark achievement as it’s the first state-wide success in the country. Seattle started its phase-in a year ago, with a $15-an-hour target set for Jan. 1, 2017. New York Governor Andrew Cuomo, who spent part of the winter travelling around in a “Fight for $15” branded bus, saw his push for a statewide $15 minimum watered down Thursday, but scored significant gains nonetheless, including a three-year phase in to $15 in New York City from the current $9.

Such increases are to be embraced, not opposed. As I noted recently, California's goal of increasing its wage will raise the incomes of 30 to 40% of workers in that state.

But what about all those fraught cries that such moves will result in massive job loss? According to Britain's Low Pay Commission, and as reported by The Star,

the commission wrestled with the predictable “job killer” charge — that businesses facing increased costs will flee or retrench, hurting vulnerable workers the most.

The “range of evidence,” the commission found from more than 140 research projects, was that the national minimum wage “has succeeded in raising pay for workers without damaging employment or the economy.”

While most past increases have admittedly been more gradual and modest in scope, the Commission

points out that businesses have previously worked around increased payroll costs by a variety of measures, including reducing non-wage costs or increasing productivity.

And there is one more thing that neither the Commission nor critics consider: the likelihood that the vast majority of people will not object to paying a little more for their products since it will allow their fellow-citizens the opportunity to conduct their lives with a little more dignity and a little more security.

Who could argue with that?

She Speaks!

But unfortunately, the politically timid (opportunistic?) leader of the Ontario NDP, Andrea Horwath, doesn't really have much to say as she finally figures out what her political ambitions will permit her to state about the minimum wage.

Andrea's Dilemma: Whither Blowest The Wind?

Were I a gifted artist (or any kind of artist, for that matter) I would draw Andrea Horwath in a two-panel caricature. In the first panel, index finger raised, she would be turning to her left, and in the second, to her right, testing the prevailing winds. That would, I believe, adequately capture what I, perhaps a tad harshly, characterize as the political prostitution of the Ontario NDP leader.

Like her long ago party leader, Bob Rae, who even today refuses to admit he made some grievous errors during his time as Ontario's Premier by trying to placate and court business, Ms Horwath seems to be walking the same lover's lane that leads to electoral heartbreak. And while it is true that she has gained popularity through some of the initiatives she has foisted upon the Liberal government as the price of her party's support, she seems to be falling victim to the same hubristic notion Rae did, that somehow she can appeal to the political right via the business community.

This strategy is given short shrift by Michael Laxer in a recent article for Rabble. Beginning with the NDP's rather oleaginous stance on the push for a $14 minimum wage, Laxer goes on to make this observation:

... the leader driven party has not strayed from its message of boutique appeals to minor consumerist middle class issues and its pandering to the fiction of the small business "job creator." While it is true that small businesses create many jobs, it is also true, especially in the absence of an industrial or neo-industrial state job creation strategy, that the jobs they create are often not even worthy of the term "McJob." They are, overall, without any question the lowest paying jobs and rarely have any benefits of any meaning.

Laxer also questions whether the consumerist approach Horwath has taken (lower insurance rates, small cuts to hydro bills, etc.) is consistent with the party's principles :

Minimum wage and non-"middle class" workers do not primarily need small cuts to hydro bills, auto insurance rates (if they even own a car), or to have the worst employers in the economy "rewarded" for creating bad jobs, they need higher wages, expanded and free transit, universal daycare, pharmacare, and the types of universal social programs "progressives" and social democrats once actually fought for. They need a wage and job strategy that is not centered around the economy's worst and least reliable employers, "small business."

They need active parliamentary political representation that will fight for living wages and economic justice.

And therein lies the problem: the Ontario NDP has essentially abandoned those whose interests it has traditionally served and advocated for.

Matin Regg Cohn, in today's Star, opines that under Horwath's 'leadership,'

...the NDP has transmogrified itself from a progressive to a populist party. Now, the third party is riding high in the polls and dreams of a breakthrough. She wants to broaden her appeal in the vote-rich middle-class suburbs and among small business owners by downplaying the party’s radical roots. Poverty is not a rich source of votes.

Hence the abandonment of long-standing party principles, evidenced in the following statement from the party leader this week regarding Ontario's minimum wage which will rise to $11 per hour on June 1:

“Well, look, I respect the work of the grassroots movements that have been calling for the $14 minimum wage, but I think that what our role is right now is to consult with families that are affected, as well as small business particularly that’s also affected,” she told reporters Tuesday.

Some might argue that this is just smart politics, that aligning oneself too much with progressive policy will simply alienate voters. But I am left with one fundamental question: If the NDP refuses to be the party of advocacy, who will be?

To that, I think the answer is obvious.

UPDATED: More On The Minimum Wage

There has been very much a predictable reaction from business to the Wynne government's decision to raise the Ontario minimum wage to $11 per hour as of June 1. Even though this modest increase will do little to lift the working poor out of poverty, the commercial sector is running about shouting that the sky will fall, prognosticating a loss of jobs as they take up a defensive position against something that will, they claim, eat away at their profits.

The following video from City TV offers a smattering of a debate over the issue; unfortunately, I no longer seem able to play video from the CBC, where much more detailed discussion has taken place, so this will have to do. Following the video, I turn to Joe Fiorito's latest observations about working poverty as his column today returns to the story of Doreen, whom I discussed yesterday.

As noted previously, Joe Fiorito has pointed out what a hardscrabble existence Doreen, a personal care worker, leads. Today, he adds to that portrait:

She said, “I broke my glasses last July. I can see, but fine stuff I can’t read.” You guessed right. She has not replaced her glasses. This is the kind of poverty that hurts deep in the bone, dulls the senses, and strangles hope. She has not stopped trying.

Compounding Doreen's problems are the expenses involved in keeping her qualifications current; she recently received a letter from one of the agencies for whom she is on an on-call list:

The letter advised Doreen that, if she wanted to stay active on the agency’s list and be eligible for work in the future, then she had to renew her first aid and CPR certificates.

Trouble is, the course preferred by that agency costs $115 and is only offered on weekends. Doreen works on the weekend for an elderly couple. What this means is that, in order to take the course and renew her certificate, she would have to cough up a day’s pay out of pocket to attend, and she would have to miss two days’ work on top of that.

There are more details about Doreen's travails in Firotio's piece, but I think you get the picture.

As I suggested yesterday, unless and until we are willing to put a human face on the working poor, their plight will never be addressed with any real justice.

UPDATE: Andrew Coyne and business representatives have recently suggested that minimum wage increases are a blunt instrument with which to attack poverty, and that a guaranteed income might be preferable. The cynic in me suggests this could be yet another way that business wants government to subsidize their operations; should they ever express a willingness to give up some of the generous corporate tax cuts that have come their way over the past several years as a show of good faith, perhaps then I will take them seriously.

Self-Interest Versus The Public Good

We Canadians talk a good game. We want our unemployed to be able to find jobs, we want those with the need to be able to readily access the social safety net, and we think the plight of the working poor is pitiable. But a question that we must confront is this: Are we willing to put our money where our mouth is?

My question is prompted by two topics: the decline of the Canadian dollar and the push to increase the minimum wage to $14 (in Ontario).

First, the decline of the loonie. Even though its decreasing value is likely being encouraged by the Harper government to boost employment numbers going into the 2015 election, the fact is that a lower dollar is good for job creation, increasing as it does exports of our products and tourism from abroad.

Yet what seems uppermost on the minds of many? - the fact that imported goods will cost more, trips to sun destinations so popular with chilled Canadians are getting more expensive, and cross-border shopping trips will no longer be such a source of delight for so many.

This is just a thought experiment, but I can't help but wonder what choice people would make if they had the power to affect the trajectory of the Canadian dollar. Would they see the larger good that will be served by its current decline, or would they say that's none of their concern, and that their priority is to get the most value for their hard-earned dollars?

On a similar note, we profess our enthusiasm for a significant increase in the minimum wage, a subject upon which I have written many times. Indeed, there is some good news on that front from the United States, where, for example, Seattle's new mayor, Ed Murray, has boosted the wages of municipal workers to $15 per hour, and Seattle's suburb of Sea Tac has done the same for the 1,500 hotel and rental car agency workers.

Putting aside the usual objections raised by the usual suspects that wage increases are job-killers, there are compelling reasons for increasing the minimum wage, not the least of which is the boost to the economy that ensues when more money is put in the hands of more people. As an entrepreneur in the documentary Inequality for All says, "Just because I make $10 million a year doesn't mean I spend $10 million a year on goods and services. It's better that money should be put in the hands of many people so they spend." He went on to explain that his money is invested to earn more money, not necessarily to create jobs.

Add to that the fact that, for example, raising the minimum wage in Ontario to $14 per hour would put raise the working poor 10% above the poverty line, assuming, of course, that they are working 35-40 hours per week. Economic stimulus effects aside, that is a pretty compelling reason to support an increase.

But returning to our thought experiment, what choice would people make if they knew that any such increase means we would all pay a little more for our groceries, our fast foods, our services, etc.? Would we turn our collective backs on the greater good, or would we embrace the fact that everyone has to make some sacrifices, both business in the form of slightly lower profits and consumers in the form of slightly reduced purchasing power, if we want a more equitable society and a slightly lower disparity in incomes?

We all like to get the best value possible for our money, and I am no exception. Yet, even though I am hardly a paragon of virtue, the logic of increasing the minimum wage is compelling, one to which I readily accede.