Today Kathleen Wynne’s Liberals raised miniumum wage in Ontario from $10.25 to $11.00. Either she doesn’t do math or she is nickel and diming. She announced that she would tag the rise to inflation since 2010 when it was last raised.
Yet by my math when I take the CPI inflation rate in Canada over the past 4 years and multiply the rate by the current $10.25 minimum wage I get a $10.96 minimum wage.
CPI inflation for 2010 – 2.35%
CPI inflation for 2011 – 2.30%
CPI inflation for 2012 – 0.83%
CPI inflation for 2013 – 1.24%
So $10.25 x 1.0235 x 1.0230 x 1.0083 x 1.0124 = $10.955
So she has just tagged in an added 4.45 cents. You may think this is paltry but it is another way she is nudging Ontario small businesses over the cliff a nickel at a time.
Officially Screwed….again.
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Unfortunately this is NOT going to stop or help people who earn a minimum wage. All it is going to do is force ALL employers and business owners to raise prices on goods and services. I am sure before too long a large DD from Tim’s will be over $2.50 or $3.00. To that this will reduce poverty is truly living in a dream world…Steve O
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I agree that the adjustment is the CPI inflation plus an adjustment, but I believe the adjustment is far greater than 4.5 c It is more like 18c
The rates you used are the Dec/Dec figures. I would use the annual figures the average of the 12 months.
The $10.25 is the beginning wage for 2010 (2010/2009 is already accounted for)
we need that adjusted by the next 3 years only, which annually would be 2.91 1.52 and .94
This gives a wage for 2014 of about $10.81
Actually one should use the All-Items CPI for Ont not Can
This was 123.0 in 2013 and 116.5 in 2010 the change over the period is 5.57% The adjusted wage should be $10.82
The wage is actually increased by 7.3%
What the government is really doing is adjusting by the CPI rate Plus an upwards adjustment to the nearest $.25
Using the CPI rate would never yield a rounded figure which may be what they want for ease of wage calculation, however that is not what they are claiming.
They intend to use the Oct/Oct rates which will not differ greatly, but the rounding up to nearest $.25 will.