ETC
6 - POLITICS
APRIL 4, 2024
Ontario plans to raise the minimum wage Zoe Pierson
in Consumer Price Index (CPI) to 3.9 per cent in 2023, Ontario said in the announcement. “Under the Employment Standards Act, Ontario’s minimum wage increases annually based on the Ontario Consumer Price Index (CPI),” Ontario said. This rise in the 2023 CPI follows a record-breaking rise in 2022, of 6.8 per cent. Although there was a decrease from 2022, the overall increase in
the CPI in 2023 is considered high, according to StatCan. “Annual average prices rose in all provinces in 2023, but at a slower pace than in 2022,” StatCan said. The Bank of Canada released a study in 2018 on the impact of the increase in minimum wage in Canada reporting that with the rise in minimum wage comes a rise in CPI. “Since a higher minimum wage raises production costs for firms, it is likely that part of the increase will be passed on to consumers,” the report said. “The extent of this pass-through, however, depends on firms’ ability to substitute away from the higher-cost labour inputs and preserve their margins, as well as the competitive landscape they face.” The Bank of Canada also reported that with the rise in minimum wage comes a loss of employment. “Traditional competitive models suggest that an increase in a binding minimum wage will reduce employment, as firms substitute toward other inputs, such as capital or, perhaps, other more productive labour,” the report said. Ontario will determine next year if there will be another increase in the minimum wage.
Other requirements also include imposing a three-year freeze on development charges for cities with a population of more than 300,000. The federal government has given until Jan. 1, 2025, for provinces to secure an agreement under the Canada Housing Infrastructure Fund while the territories have until April 1, 2025, to do the same. “If a province or territory does not secure an agreement by their respective deadline, their funding allocation will be transferred to the municipal stream. The federal government will work with territorial governments to ensure the actions in their agreements are suitable to their distinct needs,” Trudeau’s office said. In a media briefing following Trudeau’s announcement in Dartmouth, N.S., Housing Minister Sean Fraser said the money will not be released all at once. He said the first $1 billion will be for projects that are “shovel-ready.” “When it comes to the additional $5 billion, that is going to be
spread out over a longer period of time and the exact flow of money will be subject to negotiations with our provincial and territorial partners,” he said. Following the federal government’s announcement, the Conservative party said it was “yet another housing photo-op,” for Trudeau. In a press release, the Conservative party said, “After eight years of Justin Trudeau, Canadians are living through a housing hell. The cost of rent and a downpayment has doubled. Before Trudeau, it used to take 25 years to pay off a mortgage, now it takes 25 years just to save up for a downpayment.” The opposition party cited the Royal Bank of Canada’s report on housing affordability which states a household earning a median pre-tax income needed to spend another 63.5 per cent of it to cover the costs of owning an average home at market price. “That’s up from 61.8 per cent in the third quarter. In 2015, the same measure was 39.3 per cent,” the Conservative party said.
Editor-In-Chief
The minimum wage is increasing in Ontario this year, again, to $17.20 from $16.65, starting on Oct. 1, 2024. But according to a report by the Ontario Living Wage Network, the living wage for the Greater Toronto Area is at $25.05 as of November 2023. The lowest living wage in Ontario is recorded as $18.65, in Southwest Ontario, the report said. The minimum wage increase is still not within a dollar of any living wage. “The living wage is calculated based on the needs of a family of four with two parents each working full-time, full-year,” the Ontario Living Wage Network reported. There are 107 certified living wage employers in Toronto, according to the network. “The living wage reflects what people need to earn to cover the actual costs of living in their community.” The Ontario government said in an email to Humber News that the 2024 wage increase would support Canadian families and provide additional support to Canadian homes.
PEXELS/CHRISTOPHERBECKE
Ontario raises its minimum wage to $17.20 which is still almost $8 short of the average living wage of $25.05.
The statement said the announcement was made six months in advance to provide certainty and predictability and to offset the rising cost of living to keep Ontario the best place to live, work, and raise a family. Ontario made the official announcement on March 28, reporting the increase would support workers in Ontario with added protection as well. The government said along with
the increase there will be additions to the Working for Workers Four Act, 2024 through, “strengthening wage protections for restaurant, hospitality and service workers by clarifying that employers can never deduct an employee’s wages in the event of a dine and dash, supporting injured workers and banning requirements for Canadian work experience in job postings.” This increase is based on the rise
Trudeau announces a $6b Housing Fund Aanchal Nigam Senior Reporter
The government of Canada announce plans to launch a new $6 billion Canada Housing Infrastructure Fund on Tuesday, April 2. Prime Minister Justin Trudeau announced the new key measures from the upcoming 2024 budget which will be directed towards critical utilities infrastructure projects, the Prime Minister’s Office said in a news release. The Canada Housing Infrastructure Fund would accelerate construction and upgrading of critical housing infrastructure including water, wastewater, stormwater, and solid waste piping to support the construction of more homes, the PM office said. In a statement, Trudeau said Canada needs more affordable homes along with the infrastructure to help build these homes. “That’s why in Budget 2024, we’re building more infrastructure, building more homes, and helping more Canadians find a place to call their own. This is about fairness ‒
AANCHAL NIGAM
Canada has taken a strong approach to housing by investing $6 billion.
making sure communities have the safe, quality housing they need to get ahead,” Trudeau said. The PM Office said out of the total $6 billion, $1 billion will be provided to municipalities to support urgent infrastructure needs that will directly create more housing. The remaining $5 billion is set for agreements with prov-
inces and territories to support long-term priorities, the office said. However, the provinces and territories can only access the fund after they make specific commitments such as allowing more double-storeys, triplexes, townhouses and multi-unit buildings, the PM office said.