Ontario minimum wage hike could put more pressure on Brockville businesses

The minimum wage increase takes effect Oct. 1 across the province

Some workers in Brockville could see a boost to their pay starting Oct. 1, when Ontario’s minimum wage is set to increase from $17.60 an hour to $17.95.

Pamela Robertson, executive director of the Brockville and District Chamber of Commerce, said a minimum wage increase can affect the entire pay structure at a small business.

She said businesses are also dealing with higher costs in other areas, adding extra pressure.

Robertson said uncertainty surrounding the economy is another factor businesses have to consider as they plan for the months ahead.

She also pointed to loans taken out by some businesses through the Canada Emergency Business Account program during the COVID-19 pandemic. Some of those loans may be coming due at the end of the year, creating another financial pressure for local businesses.

Robertson said small businesses are likely to feel more of the pressure because they may have less room to absorb increases in wages and other operating costs.

Robertson said members of the Chamber of Commerce are not necessarily overly concerned about the minimum wage increase itself. Instead, she said, businesses are more concerned about the broader issue of costs that continue to rise.

For workers, the higher minimum wage could provide some additional income, but it may not be enough on its own to address the rising cost of living.

Kira Merritt, marketing and communications coordinator with the Employment and Education Centre in Brockville, said the wage increase could help attract workers to the area, but the cost of living remains an important factor.

Merritt said the increase alone is unlikely to have a major effect on attracting and keeping employees.

She said employers may have more success with recruitment and retention by offering additional benefits to workers.

The minimum wage increase takes effect Oct. 1 across the province.

Story by: Evan Gibb