May 15, 2017
Changes would discourage investment, eliminate jobs and diminish economic opportunities
in Ontario, especially among small business owners
OTTAWA, Monday, May 15, 2017: The Ottawa Chamber of Commerce, the Orléans Chamber of Commerce and the West Ottawa Board of Trade, in partnership with the Ontario Chamber of Commerce (OCC) has sent a letter to Premier Kathleen Wynne warning against potential changes to Ontario’s Labour Relations Act (LRA) and the Employment Standards Act (ESA), including the introduction of a $15 minimum wage. The letter is cautioning that these reforms may have unintended consequences impacting job creation and competitiveness, as well as discouraging investment in the province.
The potential reforms are coming at a time when costs for consumers and the cost of doing business is high and putting Ontario at a competitive disadvantage. Ontario has experienced slower growth in GDP and job creation than in the past, and drastic reforms to labour and employment run the risk of causing serious damage to the future prosperity of the province.
“These extensive changes could seriously impact job creation and the health of our local economy,” said the heads of the Chambers of Commerce in Ottawa. “We need to get the message out that the proposed changes may discourage investment in Ontario, thereby discouraging investment and diminishing economic opportunities in Ontario.”
“These sweeping changes will tip our economic balance in a profoundly negative way,” said Richard Koroscil, Interim-President and CEO, Ontario Chamber of Commerce, in the letter to the Premier. “The implementation of some of the policy options being considered would have the perverse effect of discouraging investment and eliminating jobs, thereby diminishing economic opportunities in Ontario. Politics cannot drive decision-making, evidence must.”
On issues of non-standard and part-time work, Statistics Canada data shows that part-time work has risen 22 percent since 2003, down from the 36 percent increase in the previous 12-year period. Recent studies show that 76 percent of part-timer workers voluntarily choose part-time work to better accommodate schooling or personal life.
“We are urging Premier Wynne to complete an economic impact analysis of the proposed reforms to limit potential consequences that could seriously jeopardize our future growth,” said Richard Koroscil, Interim-President and CEO, Ontario Chamber of Commerce. “We support reform where and when it is needed, but we caution against change for change’s sake.”
The OCC’s letter reminds the Premier that Ontario’s employer community is doing its part to create a better jobs and working conditions in the province. Budget 2017 points out that 98% of all new jobs created since the recession have been full time, and 78% have been above-average wage for their respective industries.
The letter notes that the goals of economic growth and improved employee rights are not mutually exclusive. The OCC believes that what supports the competitiveness of Ontario’s economy can also help enhance quality of work. Increased education and enforcement may assist with compliance to Government regulations and can improve worker environments. Regulatory reform that raises costs for business, only to reduce the ability of business to invest in and grow the labour force is counterproductive.
Read the OCC’s letter to Premier Wynne here.
The Chamber of Commerce in Ottawa consists:
Ottawa Chamber of Commerce
328 Somerset Street West, Ottawa, K2P 0J9
Ian Faris, President and CEO
Orléans Chamber of Commerce
Peter D. Clarke Building,
255 Centrum Blvd., Room 217W (Mailbox #4), Orléans, K1E 3W3
Kevin Conroy, Vice Chair
West Ottawa Board of Trade
555 Legget Drive, Suite 140, Kanata, K2K 2X3
T: 613. 592.8343
Sueling Ching, Executive Director