Small business owners concerned with Ontario's minimum wage hike

Orillia, Ont. -

Premier Doug Ford announced an hourly hike to Ontario's minimum wage in the new year, and it didn't take long for small business owners to express concern.

"The margins are already tight enough," said Gus Diamantakos. "It's going to mean that I have to increase my rates."

The premier said the minimum wage would jump to $15 an hour, a 65 cent increase per hour.

Many businesses are still struggling with the consequences of the pandemic, including lockdowns, capacity limits and reduced staffing and customers.

The owner of George's Country Style Restaurant in Orillia said after being closed for most of the last 19 months, the government's timing is terrible.

"Our staff, we can't reduce our staff. We are running at a skeleton staff right now," Diamantakos added.

The Barrie Chamber of Commerce is also concerned with the move by the Ford government.

"We're a little disappointed that the Ontario government didn't give enough warning to small businesses," said Paul Markle.

Meanwhile, Chris Peacock said the announcement is a step in the right direction for those grappling with food insecurity, which has become an increasing problem throughout the past year and a half.

"That's $28,000 a year, give or take," said Peacock, executive director of The Sharing Place food bank in Orillia. "[It] is not a lot of money when you equate housing and food that takes up that entire budget."

Peacock has voiced the need for low wages to increase as food banks report a demand surge, with the rising cost of living.

The wage increase takes effect on Jan. 1.