Justice for workers means decent work for all

Justice for Workers is shaping the debate on decent work and proving that even the most anti-worker governments, like Ford’s, are feeling pressured to respect workers.

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Now, on to the good stuff . . . . .

Justice for Workers (J4W) is a movement that focuses on decent work for all.

Workers in unstable, low-wage and precarious jobs are demanding justice, decent wages, decent hours, paid sick days, equal pay, and labour laws that protect everyone.

Gains made by the labour movement in the 1960s and 1970s have been steadily eroded in Ontario by the policies of the Mulroney, Harris and Ford governments.

Cuts to essential social services; outsourcing public sector jobs to private firms; consigning remaining public sector workers to four, six, or ten-month contracts; limiting public sector increases; and trying to impose anti-strike laws have undermined workers rights and ability to organize.

And, just as union gains helped all workers across the province, these roll backs of unionized workers rights in the public sector have trickled down impacting all workers across the province.

J4W is shaping the debate on decent work and proving that even the most anti-worker governments, like Ford’s, are feeling pressured to respect workers.

A large part of their effort is spent educating the public around the myths perpetuated by governments and business leaders intent on pushing their own agendas.

So, let’s bust a few myths.

Myth # 1:  Raising minimum wage hurts small businesses.

Remember when Premier Kathleen Wynn planned to increase the minimum wage incrementally to let businesses adjust?

In September 2017, minimum wage increased from $11.40 to $11.60. Then, on January 1, 2018 it increased to $14. The final increase to $15 was set for January 1. 2019. That last raise never happened because Ford was elected and cancelled the $1 increase.

When the first $0.20 increase was being implemented a friend told me about knew a small business owner she knew who couldn’t afford to pay his employees more. She said this like she thought I would agree with her and this business owner.

I did not. Because that guy needed to come up with a better business model plain and simple. My suggested change to his business plan included making his family members work those low paying jobs without an increase.

Probably, it was time for him to shut down all together because he clearly couldn’t make it, and by definition didn’t deserve to make it, in the free market.

Why did that business owner have the right to pay his workers less than a reasonable standard of living?

Why should his employees, and their families, have to work more than one job to make end meets?

Why should his employees have to use food banks to feed themselves?

Why does that business owner, and his family, get to make profits off the labour of their employees without consideration for their employees’ wellbeing?

But guess what? The idea that businessman couldn’t make it if he had to pay his workers a reasonable standard of living was bogus.

According to J4W, when the bosses and the wealthy have money in their bank accounts, they tend to invest in the stock market or purchase more luxury goods like yachts, cars and champagne.

They are not spending that money in the local economy. In fact, they are taking money out of the local economy.

Increasing wages actually pumps billions of dollars into local economies. That’s because when workers have extra money in their bank accounts, they tend to spend it locally which creates demand for more jobs.

Corporations like McDonald’s, Tim Hortons, Starbucks, Walmart, and Costco are the real threat. These corporations are able to undercut small businesses because they rely on a low-wage worker model to out-compete small businesses – often driving these small businesses under and cornering the market.

Wage increases level the playing field for small businesses, while giving the economy a boost.

Tim Horton’s heirs took paid breaks away as well as some portion of currently paid benefits from employees when minimum wage increased to $14. Yet, in 2016, that corporation made $350 million in profit and paid its CEO, Daniel Schwartz, more than $6 million in wages and benefits.

When Seattle raised its minimum wage from $9 to $15, local restaurants saw increased business.

You may have heard that employers can’t afford a higher minimum wage. Reality is, the pandemic created a deeper divide between the rich and the rest of us.

Canada’s billionaires increased their wealth by $78 billion during the pandemic. That means 47 billionaires have a combined wealth of $270 billion.

Businesses were gifted over $100 billion last year while millions of workers are falling further behind, facing unemployment, fewer hours, and more precarious work.

Raising the minimum wage is an effective way to reduce these inequalities, revitalize the economy and ensure a just recovery from the pandemic.

Myth #2:  Raising the minimum wage means companies will replace workers with self-serve checkouts and robots. Not true!

Most low-wage jobs are concentrated in the service sector making it difficult to replace people with machines.

Robots are not so good at cleaning, cooking, stacking shelves or caring for children.

Self-service checkouts simply allowed bosses to increase the pace of work. Take McDonald’s where self-service ordering machines meant the company had to hire more line-cooks to keep up with increased orders.

Myth #3:  Raising minimum wage costs low-wage workers their jobs.

Nope.

Corporations and politicians make this argument but there is overwhelming evidence that this is not the case. In fact, more jobs are usually created in the local economy.

When the Ontario government raised minimum wage from $11.65 to $14 in 2018, that was a 21 per cent increase in one year. Some economists and businesses predicted that over 100,000 jobs would be lost. Instead, 130,000 full-time jobs were added and unemployment hit a record low.

Myth #4:  Increasing minimum wage means prices will go up for consumers.

Not true.

Food and rent increase every year even when workers don’t see a pay increase. Raising wages doesn’t cause inflation, it helps workers keep up with inflation and rising prices.

The minimum wage increase in 2018 was 21 per cent yet, there was no spike in consumer prices. The consumer price index measures prices of common goods and services. It showed only a 2.4 per cent increase in prices in 2018 in Ontario – well in line with the national average.

It really comes down to the myth that raising wages will cause inflation is a tactic used to discourage workers from demanding higher wages.

‘Living wage’ and regional wage models also have unintended consequences that need to be discussed.

Myth #5:  The ‘Living Wage’ is a good solution

 The living wage model is based on a ‘typical’ household budget that assumes expenses based on two adult wage earners and two children. That means, costs include housing, food, transportation, tuition and child care.

When workers win improvements in social programs, like $10-a-day child care or lower transit fares, it reduces the size of the typical household budget. Lower expenses mean less income is needed to make ends meet. The living wage model would see a reduction in income every time social programs are strengthened.

Myth #6:  Regional pay is only fair

Paying some workers less then others based solely on where they live means those of us doing the same job for the same company will be valued differently. These regional wage schemes also incentivize companies to move from higher wage areas to lower wage areas which drives all our wages down.

Racism in the labour market influences what kinds of jobs we get; where we can afford to live; and how far we have to travel for work. Regional wage schemes mean highly diverse, racialized communities in lower-cost areas would have lower wage rates than more affluent, whiter neighbourhoods.

This regional divide also makes it harder for workers to build a united movement for decent work.

Myth #7:  The all-Canadian family offers financial security

The two parent, two child, dad as the breadwinner family has never been the norm. It was a false dogma that kept women earning less than their male counterparts.

Time to get rid of the idea of the typical household once and for all. Instead, there should be a $20 floor for all workers in Ontario because raising the minimum wage to that level would benefit two million workers, strengthen our communities and give local businesses a much-needed boost.

You can join the fight for decent work – even if you’re retired or between jobs. Find a local chapter here.