Connect with us

Canada News

Rising minimum wages could speed up automation not relocations: labour leaders

Published

on

Shutterstock

While companies may get a short-term benefit, he said the reality is that minimum wages across the country are going to keep(Shutterstock photo)

MONTREAL — Companies might not be able to dodge rising minimum wages by relocating even their most mobile workforces to lower wage provinces, but higher costs could accelerate the pace of automation.

“It would be foolish of some employers to think that they can escape temporarily by moving their operations,” said Canadian Labour Congress president Hassan Yussuff.

While companies may get a short-term benefit, he said the reality is that minimum wages across the country are going to keep increasing.

Unifor president Jerry Dias said pressure is being placed on every province to boost entry wages that mostly affect retail and service sectors, where relocation is not an option.

“This is spreading across the country like a very good epidemic and so they can run but they can’t hide,” he said in an interview.

Some businesses have criticized the pace of wage hikes in Ontario and Alberta.

On Jan .1, Ontario boosted hourly minimum wage by 20 per cent — from an .

online pharmacy https://physiciansalliance.com/wp-content/uploads/2024/02/jpg/revia.html with best prices today in the USA

60 to $14. The rate will rise to $15 an hour in 2019. Alberta is expected to raise its minimum wage to $15 later this year.

But the union leaders argue that higher wages will ultimately help businesses as low income earners are more apt to spend all they earn and boost the economy.

Jobs that can easily be done from any location, such as call centre work, are theoretically most likely to shift locations. But the reality is that many of these positions pay much higher than entry wages, said Rob Campbell, president of ContactNB, which represents New Brunswick’s large contact centre community.

Air Canada and WestJet Airlines say they have adjusted the wages of their call centre positions and have no plans to move these jobs to other provinces.

Some companies may move jobs say from Ottawa to Gatineau, Que., but the numbers will be very small, said Fabian Lange, associate professor at McGill University’s Department of Economics.

online pharmacy https://physiciansalliance.com/wp-content/uploads/2024/02/jpg/rotacaps.html with best prices today in the USA

But don’t expect provinces to woo businesses with the promise of lower wages.

He said it would be “politically problematic” for provinces with lower minimum wages to run big campaigns that emphasize how many low wage workers they have.

“It would be political suicide to do that because ultimately they’re all going to be at $15,” added Dias.

Provinces cannot guarantee that their minimum wages won’t unexpectedly rise, said University of Alberta economics associate professor Joseph Marchand.

“No one really saw Alberta’s $15 minimum wage coming. In 2014, it was one of the three lowest minimum wage provinces,” he said.

Marchand said rising minimum wages could speed up a growing trend to automate with the addition of ATMs, restaurant order screens and grocery self-checkout lines.

“It’s happening because technology is moving at a constant rate so that’s making capital cheaper year by year, but then if you have a drastic shift in labour costs that’s only going to speed up the process.”

A report from the Brookfield Institute on the Canadian jobs most at risk of automation found employees in the lowest-paid sectors, such as cashiers and food and beverage servers, are most vulnerable.

Canadian retailers such as Dollarama Inc.

(TSX:DOL) and Metro Inc. (TSX:MRU) have said they are speeding up studies of automation as they consider options for offsetting the pending wage increase.

But the shift to automation over the last couple of decades has little to do with wage hikes, said labour representative Yussuff.

“There is recognition that more and more automation is coming to a lot of sectors in society and that’s long before the minimum wage has been increased.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle1 week ago

Dr. David Suzuki’s Legacy: A Celebration at 90

Celebrating Dr. David Suzuki’s 90th birthday on Friday, May 22  was a true privilege and a great pleasure! My husband,...

Lifestyle2 weeks ago

What I Know Now About Motherhood

Did you know that a mother’s cells can live in her child’s body for their entire lives? This fascinating phenomenon...

Headline1 month ago

Age with Audacity

At 25, I imagined life at 50 would mean I’d be past my prime and grumpy.  Little did I know,...

Lifestyle1 month ago

Spring Clean Your Body, Mind and Home

Spring has sprung! This season is perfect for spring cleaning, but why stop at our homes?  We can also rejuvenate...

Lifestyle2 months ago

Hear Us Roar

There is absolutely nothing wrong with a woman who wants her happily ever after. I certainly did. After 21 years...

Lifestyle3 months ago

The Real Rich

Margaret Atwood aptly captured this dynamic with the phrase, “Old money whispers, new money shouts.”  Let me elaborate on this...

Headline3 months ago

Love in the Afternoon of Life

Love in later life—the 50s, 60s, 70s, and beyond—is a thriving, fulfilling reality. It offers companionship, improved well-being, and joy,...

Headline4 months ago

Your Most Important Relationship is With Yourself

Valentine’s Day shouldn’t be celebrated only for one day. Love should be celebrated everyday. Valentine’s Day, when expanded beyond romance,...

Headline4 months ago

The 2016 Trend Made Me Reflect On My Past & Present

Like many others, I couldn’t resist joining the 2016 throwback trend.  It was all over social media, with everyone sharing...

Headline5 months ago

How To Be Healthier Realistically

It’s a brand-new year and a brand new you! If you’re like me who had been indulging quite a bit...