COMMENTARY: Is raising the minimum wage the right answer?

The Ontario government will announce today that they will be raising the minimum wage from the current $11.40 an hour to $15 an hour.

Labour groups and social service advocates will hail the move because, in the short term, it will put more money in the pockets of low-income earners and that’s a good thing.

The Conference Board of Canada verifies that the Ontario economy is booming, but they caution that wages across all sectors of the economy are not keeping up with growth.

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Women are still underpaid for equal work, the lack of prescription drug plans and dental care and the shortage of affordable housing and an effective day-care program are some of the real problems facing the Ontario workforce and a bump in the minimum wage will do little to address those problems.

Then, there’s the impact on small business.

Already facing mounting pressure from high hydro rates and the recently imposed carbon tax, the addition of increased payroll costs could be problematic for some small businesses.

I don’t think anyone is saying don’t raise the minimum wage, but they are saying that such a move should be part of a larger economic policy that addresses the concerns of all Ontarians, both business and labour; and so far, we haven’t seen that.