The Ontario government is raising the minimum wage from $17.60 to $17.95 an hour on Thursday, but advocates argue that the 35 cent hike isn’t enough.
In a news release on April 1, the government stated that the increase is linked to Ontario’s Consumer Price Index, which stands at 1.9 percent, and it will positively impact more than 700,000 workers across the province. According to the government, a worker earning minimum wage for 40 hours a week will see an annual pay bump of about $728.
Under the Employment Standards Act, the province must adjust the minimum wage every year on October 1.
“Increasing the minimum wage delivers on our government’s ongoing plan to protect workers, help families get ahead and support a strong, stable economy during international trade uncertainty and changing labour market needs,” said the government in its release.
Living Wages Are Essential for Workers’ Needs
Anne Coleman, executive director of the Ontario Living Wage Network, a non-profit organization, mentioned that while she appreciates the minimum wage increase, it’s “really not enough” for workers trying to cover their expenses.
Coleman pointed out that in the Greater Toronto Area, the current living wage is $27.20 an hour-$9.25 more than the new minimum wage effective October 1.
The network calculates what it refers to as “living wages” for communities in Ontario based on real costs specific to those areas. They believe that for workers to pay their bills and make ends meet, they need at least this living wage amount.
“We find that two of the biggest costs in the living wage calculations are the cost of rent and food prices, both of which tend to rise faster than general inflation,” Coleman explained.
“So when we’re looking at a general increase, we’re really not quite keeping up with those major expenses that workers face throughout the year.”
A worker earning minimum wage and working 40 hours per week will see an annual pay increase of about $728, according to officials. (Robert Short/CBC)
Coleman noted that many people relying on minimum wage will increasingly depend on social services and community organizations-including food banks.
“We’re seeing rising costs everywhere you look; I know many more people in Ontario are facing food insecurity and struggling with tough choices about what bills they can afford or whether they should buy healthy groceries or a transit pass just to get back and forth from work,” she shared.
“They’re really having to make these hard decisions. Many spend extra hours working multiple part-time jobs just trying to keep up with their expenses.”
Workers State They Are Facing Tough Times
Deena Ladd, executive director of Toronto’s Workers’ Action Centre-which supports non-unionized workers across Ontario-said many workers throughout the province are finding it tough going right now.
Ladd described this raise as a “travesty” considering how expensive food, transportation, fuel, and housing have become in Ontario; these costs have made living here “absolutely unaffordable.”
“Even renting a two-bedroom apartment in this province costs over $2,100,” she stated. “A 35-cent increase isn’t even close to addressing this reality.”
Ladd believes it’s crucial for provincial leaders to recognize affordability as a crisis affecting residents in Ontario. She added that her center has been advocating for higher minimum wages for some time now-first calling for $20 per hour back in 2021.
“Tariffs along with high gas prices and skyrocketing food costs make life difficult for working people right now. So they can’t simply expect folks to survive off just a 35-cent increase,” she emphasized.
“They need substantial raises so that not only do workers benefit but small businesses too; local communities would have more people able to spend money because they’d have more cash flow.”
Ladd expressed concern over how minimum-wage earners often must make “horrific choices” just so they can keep roofs over their heads; essentials like food come second followed by transportation then medicine.
“That’s why having a solid base level for minimum wages is critical-to ensure all workers can thrive regardless of where they live or work,” she concluded.
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