The province’s minimum wage increases in 2018 and 2019 will put more pressure on Hamilton politicians to cut costs to keep taxes as low as possible.
In Hamilton’s preliminary 2018 operating budget, Mike Zegarac, general manager of corporate finance, said recently the $14 per hour minimum wage hike that occurred on Jan. 1 will add an additional $400,000 to this year’s budget. So far the proposed average tax increase is 2.3 per cent, which, if approved, would contribute an extra $77 to a household for a property assessed at $300,000.
But the higher minimum wage will have a larger impact on the city’s budget in 2019 when it jumps to $15 per hour on Jan. 1. Hamilton will see an impact of $900,000, he said.
City staff has stated previously that 100 per cent of Hamilton’s 5,100 full-time temporary and permanent employees, as well as 86 per cent of 1,950 temporary and permanent staff, earn a living wage, identified by the Hamilton’s Living Wage Working Group as $15.85 per hour.
The higher minimum wage impacts over 310 seasonal and casual staff, including servers and crossing guards.
At the Hamilton Public Library, about 180 staff would see a bump up in wages.
Paul Takala, chief executive officer for the library, said initially the minimum wage was expected to impact the library’s budget by $244,000. But eventually, it was whittled down to $100,000 in the 2018 budget.
He said through “strict hiring” of casual staff, the library was able to eliminate 9,000 hours.
“Nobody has been laid off,” Takala told Hamilton council’s budget committee.
“We have been working a couple of years on this.”
Hamilton politicians had avoided twice increasing the budget by $1 million to adopt a living wage for its employees.
Ward 3 Coun. Matthew Green introduced a motion in 2017 to address the living wage policy on an “incremental” basis. Councillors, though, backed away from the idea of adopting a living wage.
During a recent budget meeting, residential care facilities officials told politicians they couldn’t afford the higher minimum wage increase.
Calvin Cain, a regional director of Ontario Homes for Special Needs Association, said the higher wage will hurt the facilities’ operations.
He said the minimum wage increase from $11.60 per hour to $14 per hour has meant a 25 to 30 per cent increase in labour cost. Hamilton has about 52 operators and 1,200 licensed beds that employ about 500 people.
Cain wanted the city to provide some short-term relief, but councillors said they don’t have the money. Hamilton already pays a per diem of about $50.
The province’s minimum wage increases in 2018 and 2019 will put more pressure on Hamilton politicians to cut costs to keep taxes as low as possible.
In Hamilton’s preliminary 2018 operating budget, Mike Zegarac, general manager of corporate finance, said recently the $14 per hour minimum wage hike that occurred on Jan. 1 will add an additional $400,000 to this year’s budget. So far the proposed average tax increase is 2.3 per cent, which, if approved, would contribute an extra $77 to a household for a property assessed at $300,000.
But the higher minimum wage will have a larger impact on the city’s budget in 2019 when it jumps to $15 per hour on Jan. 1. Hamilton will see an impact of $900,000, he said.
City staff has stated previously that 100 per cent of Hamilton’s 5,100 full-time temporary and permanent employees, as well as 86 per cent of 1,950 temporary and permanent staff, earn a living wage, identified by the Hamilton’s Living Wage Working Group as $15.85 per hour.
The higher minimum wage impacts over 310 seasonal and casual staff, including servers and crossing guards.
At the Hamilton Public Library, about 180 staff would see a bump up in wages.
Paul Takala, chief executive officer for the library, said initially the minimum wage was expected to impact the library’s budget by $244,000. But eventually, it was whittled down to $100,000 in the 2018 budget.
He said through “strict hiring” of casual staff, the library was able to eliminate 9,000 hours.
“Nobody has been laid off,” Takala told Hamilton council’s budget committee.
“We have been working a couple of years on this.”
Hamilton politicians had avoided twice increasing the budget by $1 million to adopt a living wage for its employees.
Ward 3 Coun. Matthew Green introduced a motion in 2017 to address the living wage policy on an “incremental” basis. Councillors, though, backed away from the idea of adopting a living wage.
During a recent budget meeting, residential care facilities officials told politicians they couldn’t afford the higher minimum wage increase.
Calvin Cain, a regional director of Ontario Homes for Special Needs Association, said the higher wage will hurt the facilities’ operations.
He said the minimum wage increase from $11.60 per hour to $14 per hour has meant a 25 to 30 per cent increase in labour cost. Hamilton has about 52 operators and 1,200 licensed beds that employ about 500 people.
Cain wanted the city to provide some short-term relief, but councillors said they don’t have the money. Hamilton already pays a per diem of about $50.
The province’s minimum wage increases in 2018 and 2019 will put more pressure on Hamilton politicians to cut costs to keep taxes as low as possible.
In Hamilton’s preliminary 2018 operating budget, Mike Zegarac, general manager of corporate finance, said recently the $14 per hour minimum wage hike that occurred on Jan. 1 will add an additional $400,000 to this year’s budget. So far the proposed average tax increase is 2.3 per cent, which, if approved, would contribute an extra $77 to a household for a property assessed at $300,000.
But the higher minimum wage will have a larger impact on the city’s budget in 2019 when it jumps to $15 per hour on Jan. 1. Hamilton will see an impact of $900,000, he said.
City staff has stated previously that 100 per cent of Hamilton’s 5,100 full-time temporary and permanent employees, as well as 86 per cent of 1,950 temporary and permanent staff, earn a living wage, identified by the Hamilton’s Living Wage Working Group as $15.85 per hour.
The higher minimum wage impacts over 310 seasonal and casual staff, including servers and crossing guards.
At the Hamilton Public Library, about 180 staff would see a bump up in wages.
Paul Takala, chief executive officer for the library, said initially the minimum wage was expected to impact the library’s budget by $244,000. But eventually, it was whittled down to $100,000 in the 2018 budget.
He said through “strict hiring” of casual staff, the library was able to eliminate 9,000 hours.
“Nobody has been laid off,” Takala told Hamilton council’s budget committee.
“We have been working a couple of years on this.”
Hamilton politicians had avoided twice increasing the budget by $1 million to adopt a living wage for its employees.
Ward 3 Coun. Matthew Green introduced a motion in 2017 to address the living wage policy on an “incremental” basis. Councillors, though, backed away from the idea of adopting a living wage.
During a recent budget meeting, residential care facilities officials told politicians they couldn’t afford the higher minimum wage increase.
Calvin Cain, a regional director of Ontario Homes for Special Needs Association, said the higher wage will hurt the facilities’ operations.
He said the minimum wage increase from $11.60 per hour to $14 per hour has meant a 25 to 30 per cent increase in labour cost. Hamilton has about 52 operators and 1,200 licensed beds that employ about 500 people.
Cain wanted the city to provide some short-term relief, but councillors said they don’t have the money. Hamilton already pays a per diem of about $50.