Raising the minimum wage: another sign of the times

This video from Blue Collar Logic, explains how the minimum wage should work.  It applies, or should apply, everywhere and anywhere. The current debate about rising minimum wages here in Ontario and around the world is just another sign of the times. Young adults want and expect to earn lots of money at the beginning of their careers, instead of working their way up the ladder as most of their parents and grandparents did.

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A recent post complained about how people here in Ontario are blaming a specific Tim Hortons franchise owner for reacting to a rising minimum wage by cutting back on paid breaks and benefits.  Because this particular franchise owner happened to be the rich relative of the Tim Hortons founder, their actions were judged to be greedy, mean and bully-like.  Because of the greed (perceived) of one small (wealthy) business owner some people are now boycotting all Tim Hortons franchises.  How much sense does that make?

The fact is, one that blind supporters of the rising minimum wages forget or choose to misunderstand, most small businesses are not run by wealthy people.  The majority are run by people who have worked very hard for years to establish their business. Most of them started out working for a low minimum wage, but were ambitious and motivated enough to climb a long ladder to achieve their current success at the top of that ladder.

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Many of these owners have no choice but to cut back when forced with a rise in minimum wage.  It makes no (business) sense to raise the wage of inexperienced new hires simply get their wages closer to that of their owners.  Unless you are a politician looking to get votes after losing face with the hydro fiasco.  Then it makes perfect sense, give the young adults, the ones that don’t yet pay hydro bills, a raise.



Tim Hortons is the not the bad guy here folks!

Timmys is not the enemy or bad guy here folks.  I would love to see the statistics as I am willing to bet that most Tim Hortons franchise owners are not billionaires or even millionaires.  In fact, I doubt many other small business owners are either, franchise or not!


Tim Hortons

The fact is any business, small or large, has a budget for employee wages, Tim Hortons included.  Even professional sports teams do, there is a lot more money in the salary budget, but there is a budget.  It’s called a salary cap, just ask former Ottawa Senator Kyle Turris.

It is simple math, but much easier to visualize at the small business level.  If you have the budget to pay four employees fifteen bucks an hour and the rate gets raised to twenty bucks an hour, your budget now only allows three employees to get paid. (4×15=3×20=60) It’s not rocket science, just simple math, and it’s going to happen in all small businesses in Ontario after the hike in the minimum wage.  Sooner or later, probably sooner.

This latest vote grab by the Ontario Liberal government is just another reason small business owners are struggling to survive.  Aiming to Wynne (pun intended) the vote from the minimum age earners in the province, our premier has screwed the small business owners.  Not to mention the employees who have worked several years to get to the level that new employees will now get upon starting.  Do you think they will get a raise to compensate?  Right, not a chance!

So go enjoy a coffee at Tim Hortons, they are not the bad guys here!  Maybe while you are drinking your coffee the math will become easier and the picture clearer.