Restaurants In Ontario To Add Surcharge To Your Bill
Just a few days ago I posted how the new minimum wage in Ontario would not help the economy but would result in added burdens to small businesses operating in the province. Some of the feedback I received suggested that hiking the minimum rate to $15 was justified and people were entitled to a ‘living wage’. You can find this article here:
https://steemit.com/money/@alexwyn/ontario-s-new-usd15-per-hr-minimum-wage
As it turns out, the restaurant industry in Ontario it considering fighting back and adding what they refer to as a ‘Wynne Tax’ to the bottom of every dining tab for their customers. This would somewhat accurately display the reasoning behind the cost increases and how in the end it will be the consumer who ultimately picks up the tab. After all, the money has to come from somewhere and most restaurants already operate on low margins.
Quote:
“This increase will have a paralyzing effect on the restaurant industry. Average profit margins of restaurants in Canada are 4.6 per cent of sales revenue,” the firm said. “This labour increase without any other changes (e.g. price increases) will take that average profit down to a staggering profit loss of 6.0 per cent of sales revenue.”
Link to article:
http://www.bnn.ca/restaurants-could-consider-a-wynnetax-in-wake-of-wage-hike-consultant-1.767485
Yes, it would be wonderful if everyone was guaranteed a comfortable standard of living but this logic actually causes more problems than it solves. By demanding small businesses and employers pay higher wages results in less economic activity. Since the consumer must now pay MORE for goods and services, their spending decreases and in the case of dining out, the consumer will dine less. The restaurant owner’s business is not growing and therefore will not hire additional staff to service growing demand.
The underlying problem isn’t necessarily a minimum wage issue. It is government involvement in almost every aspect of our economy. By increasing social services (more gov employees), regulatory bodies to govern everything and spending like drunkin sailors, the government’s only solution is to tax current and future generations to feed this growing bureaucracy. This is the root of the problem that hinders the comfortable ‘living wage’ not the free market.
Photos courtesy of:
https://www.youngsinsurance.ca/site/blog/2016/09/16/hr-news--minimum-wage-increases-october-1-2016
The older I become, the more enslaved I feel. Every aspect of my life, needs government approval. I was helping out a friend at his restaurant speaking with a company to that hand delivers menu. I just found out, he needs a license to drop his menu's at people's doorsteps. The government will collect money from you any which way it can. A lot of people support this because they do not want to be responsible for alot of things as it's a lot of work. Eventually when we get to the point when government controls everything entirely, and you are literally enslaved, it will be too late to do anything. You won't have any power or freedom remaining.
There is an argument for everything but I believe minimum wage is an infringement of free market economy. Let every employer pay what they want, they will learn that they are over paying or underpaying.
I'd upvote you twice @aaagent but steemit won't let me. hahaha
You're 100% correct brother. :)
It is the nature of Capitalism to keep labor costs as close to zero as possible. If unions are (functionally) outlawed as they are in much of the USA today, then gov't has to intervene to protect workers' rights to fair compensation.
There is no universal fair compensation. If you are willing to accept x amount and employer is willing to pay x amount, that is fair. If you realize x is lower than your peer, you will ask for more, leave, or suck it up (this will affect performance). If you leave and many others leave because of what they deem unfair pair, pay will increase. If the employer realizes he is paying too much, he will fire people, cut their pay or find cheaper workers willing to accept more.
I believe government should protect our right to live and co-exist. Very basic means. Protect our right to fair compensation? Who determines fair compensation? Do we need to hire an employee to manage that determination of fair compensation? How much will I have to bribe the fair compensation worker for them to bring the number to a number I consider fair in my industry? I have seen my family pay bribes to politicians just to stay in business, not even for a benefit.
The more government, the more corruption, and the less free market you will have.
Nothing in life is free and it's this type of mindset that is destroying our society.
Well said!
Ok, I'm making $16/hr and you were making $8/hr, we both work in the same restaurant. I'm the sous chef and you're the dishwasher. If you are now bumped to $15/hr, what should the restaurant now pay me? Or do I just make $1/hr more than the dishwasher?
Exactly @wakeupsheeps! Why would the sous chef go to school (student debt or money out of pocket) to learn the skills to make only $1 more per hour? Sous chefs would decline in society or the restaurant owner has to pay the sous chef more to hire his/her talent. Again, the result is more costs passed onto the customers coming into to dine which contributes to the points I was making.
It is a great question.
I guess the sous chef is going to be doing the dishes as well as cook due to the fact that the restaurant can't afford a dishwasher at that rate!