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The Unsound Ontario Minimum Wage Law

Another fact that should be borne in mind, namely, that the shop we bought was literally a sweat-shop, and that sweat-shops are always made up of inefficient workers who cannot get a job in a high-grade shop. Wages in what are known as "inside shops," run by the factories themselves, always start where the sweat-shop wages leave off; thus the wages that were being paid in this shop at the time we took it over, must not be confused with  the wages paid in the inside shops of the large clothing manufacturers of Cincinnati.

- The Golden Rule In Business, Authur Nash, 1923. 

Minimum wage is the lowest hourly wage payable to most employees that is permitted by law. In Ontario, with some exceptions, a worker must be paid no less than $11.00 per hour (before deductions), if the employee is paid an hourly wage.

Minimum wage legislation goes back to New Zealand when enacted in 1894. In 1896, the Australian state of Victoria followed, then Great Britain in 1909, and in the years after some European countries also enacted minimum wage legislation. Massachusetts became the first jurisdiction in North America to enact some kind of minimum wage law in 1912.

Canada saw "Fair Wage Policy" in 1900, and the Provinces eventually all enacted some minimum wage law, the last being Prince Edward Island in 1959 (women) and 1960 (men).  The short lived United Farmers Of Ontario government legislated the Minimum Wage Act of Ontario in 1920.

In Ontario, as in other jurisdictions, only women were paid a minimum wage by law in 1920. The thinking seems to be that women needed the government to protect them from low wages because women were not part of labour unions that granted protection to men. By 1925, things had changed.

[Why could women not form labour unions like men did? Why did the existing labour unions not allow women to join them?]

Men were given a legislated minimum wage in 1925 in Ontario by the Conservative government; however, this minimum wage was apparently higher than the minimum wage for women. The thinking this time appears to be men needed a higher minimum wage than women because men were the primary income providers for households.

[Why was there a legislated minimum wage for men when men have the labour unions to protect them against low wages? Why is the government legislating a lower wage for women in 1925 when in 1920 the government legislated a minimum wage for women to prevent women from being paid a low wage?]

Following decades of changes to minimum wage in Ontario, we are at this point in 2014:

Minimum Wage Background

The following policy objectives are given consideration when adjusting the minimum wage:

Fostering economic viability;

Minimizing potential adverse employment/economic effects of increases;

Encouraging participation in the labour market – workers should be better off working than being on social assistance;

Ensuring that workers' earnings are not diminished by rising inflationary costs;

Increases should be viewed by labour and employer stakeholders as fair.

Ontario Ministry of Labour 

The first "policy objective" is a vague political ideal that is not a logical reason for minimum wage law.

The second "policy objective" admits increases in minimum wage levels have an adverse effect on employment and the economy.

Why is the level of social assistance not lowered instead of raising the level of minimum wage to make workers better off working? 

Minimum wage levels have never been raised with the rate of inflation. The wages of all workers is effected by rising inflationary costs, not just minimum wage earners.

Government increases minimum wage through legislation, usually because of the political involvement of labour unions, and employers have no say in the law. Employers pay the wages of workers, not labour. 

If one reads through the statistics provided by the Ontario government, one will see the data shows the majority of minimum wage earners are between 15 and 19 years of age, are the son or daughter in the household, have some high school education, and work less than 35 hours per week. This means most minimum wage earners in Ontario are likely high school students, living at home, working part-time jobs. The majority of minimum wage earners are not workers supporting themselves or their families.

In terms of age, the youth stand out as a group among minimum wage earners. Youth in the 15- 19 years age group are only 4.9% of the total workforce but they form a solid 42.1% of the minimum wage workforce.

The majority of minimum wage earners are dependent working age children (a son or daughter living in a family home), whereas a minority of minimum wage earners are couples.

Incidence of minimum wage work among people with some high school education (i.e., not completed high school) increased significantly from 2006 until 2011. This group was consistently more likely to be employed at the minimum wage than all other groups, for every year during the 1997-2012 period.

Nearly seventy percent of minimum wage earners work part-time, i.e., less than thirty-five hours per week. Only thirty percent of minimum wage earners work full- time hours, i.e., thirty-five hours or more per week. The largest group of minimum wage earners, one in three, works between fifteen and twenty-nine hours per week.

Ontario Ministry of Labour 

The promotion and support of minimum wage law in Ontario is not based on sound evidence or reasoning. Minimum wage may benefit some of those who are employed, but is a detriment to those who are unemployed. However, none of this matters.

The only question is: it is moral for the government to eliminate freedom of contract, and use force against employers and employees by legislating minimum wage law? 

I would like wage law in Ontario to be abolished. 

In other days - days very far from being old - the state had no higher nor broader conception of its duty than that of protecting the individual from assault upon himself; inroads upon his property and revenue, of keeping legal peace, of defining limits beyond which the individual should not pass.

- The Golden Rule In Business, Authur Nash, 1923.

 

© Trevor Dailey

References:

The Canadian Encylopedia 

Wikipedia 

Ontario Ministry of Labour 

Government of Canada: Labour 

History of Minimum Wages: Price Edward Island

2014 Minimum Wage Advisory Panel

If I Were Elected

London, Ontario will be having a municipal election on October 27, 2014. As someone who is fed up with the way the City of London has been misgoverned and mismanaged over the years, and someone who wants to see genuine new ideas and changes, I am once again disappointed and frustrated with my candidate choices.

Searching out the candidates in my Ward, I quickly crossed them all off my list of candidates I would consider voting for. In the mix of candidates, they are all very vague about their political platform; if they have one at all.

It is this sneaky "please everyone" approach "until after I get elected"; this "I'll do what I want to do after you elect me" scheme, that I find repugnant.

I am not a candidate in this municipal election, but I will present my mad as a hatter ideas (or is it Cheshire Cat ideas?) so, if I were a candidate, you would be an informed voter. You know what you are voting for.

There is likely more to come as I think about this. This post might be growing.

The Economy

Business creates jobs, not government.

No granting public money to private and corporate interests in the form of a monetary gift, reward, or a bonus. 

There will be no more loans, grants, bribes, or other similar deals to business from the City.

I would tell every business owner that I know nothing about running their business, so I am not going to tell them how to run their business. I'll take care of the roads, water, sewers, hydro, the basic infrastructure, and the rest is up to the business owner.

There will be no bylaws that interfere with private business, like sign bylaws, bylaws for private property, and other such totalitarian bylaws.

There will be no City Council meddling in development. 

Taxes

The taxpayers are the ones who must pay the tax bill.

Elimination of property taxes and move to a consumption tax. You pay for what you use, you don't pay for what your neighbour uses. You do not "pay rent" to the City for the property that you own. 

Many City services would be "pay as you use". Some services, like water, would be a flat rate to a certain level, and then over that level would be a "pay what you use" system.

Elimination of any tax that discriminates, such as the current (extortion) tax on business downtown. I would have all those "tourist" metal tress that were bought with this tax cut down, sell them for scrap metal, and give the money to the downtown business. 

Keep taxes as low as possible by only spending tax money on what the City should (not could) be spending money on such as: infrastructure and protection services (police and fire).

Spending

If it isn't in the best interest of the entire city (no special interests), or it can be done through competing private companies, or philanthropy, the City (meaning taxpayers) is not paying for it. Yes, I can create a long list of cuts.

Who will help the less fortunate, the poor, the sick, the disabled? You will. I will. The taxpayer will not be forced to.  

No accepting any donation to the City that is going to be funded by taxpayers later on. Like the donated broken water main in the river that costs taxpayers tens of thousands of dollars per year to maintain.

No full time city councilors. It is a part time job. You want to be a city councilor? Be sure to keep your day job. The pay rate for Councilors will reflect this. 

Audit

Regular and independent audits of the City budget (available to the public) and expeses to identify waste. Responsible managing of the public money will be the highest priority.

All City audits will be made available for public review and the end of each fiscal year.

Do you want to know how much tax money the City spent doing that road construction on your street all summer? Do you want to know if Mr. Dailey charged his lunches to the taxpayer? Do you want to know exactly what the City debt is? Do you want to know how every nickel is being spent? It's your money. Look it up. It's in the book.

Wards

Do we really need 13 Wards? I don't think so. 6 Wards. 

Political Parties

I would introduce political parties to make City Councillors accountable to the citizens of London. No more forming council cliques.

I might belong to London's Freedom Party.

Bylaws

Life. Liberty. Property. Yes, that is from Freedom Party, and that is the way I would do things regarding bylaws. I am sick and tired of the domineering bylaws from the socialists in City Hall.  

Taking from Penn Jillette, any bylaw passed would expire in 1 year unless a majority of councillors voted to keep it after the 1 year. A majority yes vote would be needed each year for the bylaw to continue. This might keep bad bylaws from being passed in the first place, and might repeal those bad bylaws already in place.

City Councilors must be held accountable for the bylaws they pass. 

City Permits

Looking up addresses on the City Property Inquiry System might give you an idea of some of the absurd City permits that had to be obtained and paid for. Not only does one need to spend time obtaining a City permit for such minor things as an event tent, or to install a sink, one has to pay money to the City for it. This is just another tax, and another way to give the meddling administration something to do. City permits are not needed.

Other

I would rid the streets of those "traffic calming" speed bumps. We have a law against traffic speeding. We need the police to enforce that law more if speeding  is a problem. That is part of their job. We do not need "speed bumps" that are really just "anti-automobile bumps".

I would like to know the effects these "speed bumps" have on snowploughs doing snow clearing in the winter.  

Traffic lights at intersections that are not busy will automatically flash red or amber at times when traffic voulme is very low, maybe from midnight to 05:00 hrs, and automatically go back to regualr operation from say, 05:00 hrs to midnight. Having to sit for 5 munites at a red light at a deserted interestion is pointless. A flashing red light means to treat to interestion as an all way stop. A flashing amber light means to only proceed through the intersection when it is clear, and with caution.

© Trevor Dailey

The Government Cannot Stop Spam

My Internet service provider has a spam blocking feature that I receive at no extra cost. I am able to control the level of spam protection, and add or remove addresses. I usually don't see a single spam email unless I want to. Occasionally, a spam email will get through, but this is rare. If one does get through, I add the address to my spam filter, and I delete the email.

According to the federal Conservative government, what I have in place to deal with spam is not enough. I am under threat. I must be protected. I must be saved. 

Canada's anti-spam legislation (CASL) is in place to protect Canadians while ensuring that businesses can continue to compete in the global marketplace.

July 1, 2014—The law is now in effect.

You can't send a commercial electronic message if you don't have at least implied consent.

You have 36 months* to obtain express consent from your past clients or customers.

You can now report spam.

Most Canadians do not know about this unnecessary legislation that the Canadian government passed on July 1, 2014. The fact that this legislation was even considered shows just how out of control big government can get; or maybe there was another motive for this?

It is an asinine piece of legislation that should have been immediately tossed into the garbage, but it wasn't. Instead, it will create a lot of problems, anxiety, and frustration for those who obey the law, and does nothing to stop spammers who don't care about the new law.

One Canadian company sent me an email on June 29, 2014 asking me to confirm my email subscription with them regarding the new law. I declined to do so. On August 8, 2014, the company resumed sending me emails.

No companies I have an email subscription with from Canada, the U.S.A, and the U.K. have sent me any email to request my confirmation of subscribed emails in accordance with this stupid new law.

My email spam filter is still blocking all the spam that is still being sent to me.

(And I still receive unwanted telephone calls despite my phone number being listed on the National Do Not Call List)

© Trevor Dailey

References:

Canada's Law On Spam And Other Electronic Threats 

Just Right Media Audio Podcasts

July 3, 2014: 357 – When the sh*t hits the spam – Digital Canada 150 / Agenda 21- Sustainable Communism

July 31, 2014: 361 – Power grab / Forget me ought / None sum / Polar expedition