Is it time for a separate minimum wage for agriculture?

FOR IMMEDIATE RELEASE:
March 14, 2014

QUEEN’S PARK – Haldimand-Norfolk MPP Toby Barrett feels suggestions for a separate minimum wage for agriculture workers is worth exploring.

During debate on the Fair Minimum Wage Act, Barrett explained that the Ontario Federation of Agriculture, Ontario Greenhouse Vegetable Growers and Ontario Fruit and Vegetable Growers’ Association all indicated the minimum wage is having a negative impact on their members.

“The horticulture sector is still struggling to absorb the last minimum wage increase to $10.25 an hour,” Barrett reiterated from Finance Committee testimony of the Ontario Fruit and Vegetable Growers’.

The Ontario Federation of Agriculture, indicated before Finance, “Jumps in minimum wage reduce seasonal and youth employment….”

And the Ontario Greenhouse Vegetable Growers came before the Finance Committee to indicate their profitability is sensitive to changes in minimum wage, since they compete against jurisdictions with much lower wages, and describe it as an ill-advised way to deal with poverty.

“These organizations seem to have consensus,” Barrett said. “They do lean towards linking the minimum wage to consumer price index, if we take into consideration the general health of business at that time, but they certainly did not want to see this $11 increase thanks to the present government.

“Give these organizations credit. They put forward an idea that perhaps it is time, in the province of Ontario, to have a separate job category, a separate agricultural manual labourer category, for issues around government setting wages.”

“Competition for the food industry is global,” Barrett said. “Our growers are competing against cheaper minimum wages and lower energy prices. We need to level the playing field to support locally-grown food.”

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For more information please contact MPP Toby Barrett

at 519-428-0446, 905-765-8413 or 1-800-903-8629

Official Records for 3 March 2014
FAIR MINIMUM WAGE ACT, 2014 /

Mr. Toby Barrett: The member from Essex did present the NDP case in support of the $11 minimum wage increase that the Liberal government brought in. As he stated, it’s now the highest in Confederation, and I do point out that that’s a problem.

The Ontario Fruit and Vegetable Growers’ Association testified before finance and they indicated, “The horticulture sector is still struggling to absorb the last minimum wage increase to $10.25 an hour.”The Ontario Greenhouse Vegetable Growers came before finance—another major employer, not only in Essex but in Haldimand–Norfolk—and indicated that their profitability is very sensitive to changes in the minimum wage, since they compete against jurisdictions with much lower wages, and describe it as an ill-advised way to deal with poverty.

OFA, the Ontario Federation of Agriculture, indicated before finance, “Jumps in minimum wage reduce seasonal and youth employment….”

These organizations seem to have consensus. They do lean towards any future increases to the consumer price index, if we take into consideration the general health of business at that time, but they certainly did not want to see this $11 increase that we got from the Liberals. They didn’t want to see an $11 hike and then negotiations around linking it to CPI.

I also give these organizations credit. They put forward an idea that perhaps it is time, in the province of Ontario, to have a separate job category, a separate agricultural manual labourer category, for issues around government setting wages.