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Magic Productivity
An increase in the minimum wage doesn’t magically make low-wage workers more productive. So we predict that employers will reduce other components of the compensation package: reduce paid breaks or reduce their contribution to benefits such as health and dental insurance.
The minimum wage in Ontario on December 31, 2017 was $11.60 per hour. As of January 1, it is $14.00 per hour.
In a letter dated December 2017, Ron Joyce Jr. and Jeri Horton-Joyce told employees at two Tim Hortons restaurants they own in Cobourg, Ontario, that as of Jan. 1, they would no longer be entitled to paid breaks, and would have to pay at least half of the cost of their dental and health benefits.
Or they could have fired people.
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