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ON : Minimum wage increase to $ 14/hr - Questions regarding current Senior employees

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  • Dec 11th, 2017 10:46 am
[OP]
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Nov 25, 2017
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ON : Minimum wage increase to $ 14/hr - Questions regarding current Senior employees

As we all know the minimum wage is becoming $14 per hour on January 1, 2018 in Ontario from the current $ 11.60/hr.

What about the hourly wage employees who are already on $ 14/hr , will their wage also automatically increase by the difference of $ 2.40/hr ? And become $ 16.40/hr.

Say someone who has just joined a retail store or fast food joint or warehouse and is working on minimum wage $ 11.60/hr . And there are other employees who started working there, 2-3 yrs back at minimum wage but got a few raises in the last 2-3 years and now are at $ 14/hr.

Come Jan 1, 2018 , both the new recently joined and the old 2-3 yr old employees will both be at $ 14/hr if the older employees don't get a corresponding raise ( difference raise ). How is that fair to the older employees ? The $ 11.60/hr guy who just joined gets $ 14/hr within months, but the $ 14/hr guy remains at $ 14/hr ??? Is that how it will be played out ?
Last edited by rogersmunro on Nov 27th, 2017 9:24 am, edited 1 time in total.
29 replies
[OP]
Banned
Nov 25, 2017
9 posts
1 upvote
I was a manager at a place where they hired new employees at minimum wage $ 11.60/hr . Its a light manual labour type of job. Basically a physical job. Not too hard but not too easy either. Mostly students and new immigrants working there.

Every year the company gives a $ 1/hr or so raise & caps it off at $ 18/hr.

So people working there for 2-3 years are at around $ 14/hr and have earned their raise for sticking with the company & working hard & are rewarded for their loyalty. I wouldn't be surprised if these guys are pissed of come januray 1, 2018 , when Newbies are also at $ 14/hr and these oldbies are also at $ 14/hr after 2-3 years.
Deal Fanatic
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Mar 31, 2008
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There maybe a small bump of a few cents above the $14 but no way they bump it up by the same nominal amount or % amount.

I'll give you a basic economics lesson. Minimum wage actually takes away wage increases for others (more deserving through skill or tenure). Effectively, a 'should be' higher paid worker subsidizes the newer, less experienced worker. Welcome to socialism at it's most basic and easiest to see.

Enjoy!
Deal Guru
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Jun 12, 2003
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Classic example of the middle class crunch
ShadowVlican
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Dec 3, 2009
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Seen this example over 100 times, philosophically the more productive people in that wage category should get a bump.

Overall, being efficient in a menial job that pays low isn't enough. Sure, if it's PT they will get most of the hours but those people should focus more on increasing their skill set than maximizing efficiency through experience. The only place where you might get "respected" for doing a menial task better than everyone else is Japan but this isn't Japan.
Remember to be an RFD-er and NOT a degenerate.
Deal Addict
Sep 22, 2013
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If they work for a halfway decent employer I would expect a very small increase (definitely not $2.40 an hour).

But otherwise, yes, I foresee them effectively getting ‘screwed’.
Deal Addict
Sep 23, 2007
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There's no law mandating that companies need to bump up wages for existing employees. But in practice a lot of employers will do so for the people they want to keep.
Deal Addict
Jul 11, 2008
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rogersmunro wrote:
Nov 27th, 2017 9:24 am

What about the hourly wage employees who are already on $ 14/hr , will their wage also automatically increase by the difference of $ 2.40/hr ? And become $ 16.40/hr.

?

NO NO NO AND NO!

You can talk it over with dumbasses who wanted minimum wage increase but that's not how it works.

Long term effects of high minimum wage will be bad for almost everyone.
Sr. Member
Nov 13, 2013
753 posts
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OTTAWA
BananaHunter wrote:
Nov 27th, 2017 2:25 pm
There's no law mandating that companies need to bump up wages for existing employees. But in practice a lot of employers will do so for the people they want to keep.
Exactly it is all supply and demand. Minimum wage of course distorts the market but it is still a market. People will migrate out of unpleasant jobs if they don't get a raise. Such a dramatic increase is unprecedented so who really knows how those making $13-$15 now will react if they end up paid the same as new hires or those doing easier less skilled tasks. I wouldn't be surprised if on principle they are more angry and quit more often as people compare themselves to their co-workers.

The PCs say they will delay the $15 increase. I wouldn't be surprised if they cancel it which probably isn't a bad thing. I guess with their Liberla-lite platform they are a shoo in for 2018.
Deal Addict
Jul 12, 2008
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Some people from What I have seen making $13 - $16 now will be negatively affected, remember it is supposed to go $15 a year after as well. Some of these people I know about were happy to say they were some levels above minimum wage plus if prices go up due to this increase this group might not get much in wage increase but yet face higher costs.
Newbie
Jan 20, 2017
71 posts
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So if govt. decides to lower min wage from lets say 11 to 9 and while i make 12/hour, will my wage be lowered by $2?
Is a wage increase or minimum wage increase?
Seriously why these questions?
Newbie
Jul 8, 2017
37 posts
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jaguaar wrote:
Nov 28th, 2017 8:11 am
So if govt. decides to lower min wage from lets say 11 to 9 and while i make 12/hour, will my wage be lowered by $2?
Is a wage increase or minimum wage increase?
Seriously why these questions?
If you were a supervisor at a retail store and made 16 an hour to give tasks to your team and have to deal with the paperwork and customer service headaches. And your team members get a raise to 15 dollars to work a position that is much less stressful than yours and earn only a dollar less come January 2019. Would you not be pissed?

Why the stupid question?
Jr. Member
Dec 11, 2013
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YoungPostiefrom92 wrote:
Nov 28th, 2017 10:41 pm
If you were a supervisor at a retail store and made 16 an hour to give tasks to your team and have to deal with the paperwork and customer service headaches. And your team members get a raise to 15 dollars to work a position that is much less stressful than yours and earn only a dollar less come January 2019. Would you not be pissed?

Why the stupid question?
The company will decide if a raise is worthwhile for productivity and retention.

To speak to your example, there have been many situations where the sales staff made considerably more than the managers in retail, yet there were always people willing to take those roles. Back when I worked for Futureshop, they offered me a sales manager position; when I found out what the pay was, I politely declined. Another guy took the job and I think he's a higher up with Bestbuy now. Managing positions should be seen as an opportunity for growth, not just a higher paying position. Supervisor positions are never worth the workload IMO. But, you can't go straight from RA to DSM if that's your goal.
Newbie
Jan 20, 2017
71 posts
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YoungPostiefrom92 wrote:
Nov 28th, 2017 10:41 pm
Would you not be pissed?

Why the stupid question?
No, God forbid if I value the worth of MY work based on others' salary.
Wages are a market driven phenomenon. Its about demand supply. I will try to make what I can make, it has nothing to do with minimum wage or minimum wage raises.
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Mar 31, 2008
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JFlash20 wrote:
Nov 29th, 2017 12:17 am
The company will decide if a raise is worthwhile for productivity and retention.

To speak to your example, there have been many situations where the sales staff made considerably more than the managers in retail, yet there were always people willing to take those roles. Back when I worked for Futureshop, they offered me a sales manager position; when I found out what the pay was, I politely declined. Another guy took the job and I think he's a higher up with Bestbuy now. Managing positions should be seen as an opportunity for growth, not just a higher paying position. Supervisor positions are never worth the workload IMO. But, you can't go straight from RA to DSM if that's your goal.
My cousin was similar. Worked as a retail telcom sales. Started early (part-time during university in the early 2000s). Really good sales guy, raking it nice. But then by his later 20s, was getting married, etc., he realized for long-term stability, it is better to try to go the manager route. But because he was there a long-time as a sales guy, his hourly wage went up pretty high, to the point where when he became assistant manager, it was the same or almost lower - the commission as a sales guy.

But seeing that he didn't just want to be a sales guy (plays on your ego, less respect from friends/family as you get older, always uncertain what his bonus/variable pay would be), he took the assistant manager role. He was miserable as he was doing as much or more work, but less money. Wife wasn't happy, etc.

But made it up to Manager, and now in the area manager territory of responsibility and pay with stable hours. So it worked out so far for him, but it was definitely an adjustment initially.

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