Some Chatham-Kent small businesses may have to start upping their prices.
That's because Ontario's minimum wage is now set at $17.20, up from the $16.55 rate that was in place over the past 12 months. Back in 2020, the wage was at $14.25, however, the provincial government has raised it five times since then.
Rory Ring, the president and CEO of the Chatham-Kent Chamber of Commerce, believes some local businesses may just absorb the added costs but some will have to rely on their customers.
"Businesses have to pass on many of the costs that have been increasing over the past years," he said.
Ring explained this specific increase may not impact a lot of local businesses. This is because many pay their employees more than minimum wage.
"They understand that to keep your employees happy you'll need to pay them a little bit extra just to make sure they're not going across the street seeking other opportunities," he added.
What will more likely cause some to raise their prices is whether or not they'll increase the wages for employees making more than the minimum. They may have to do this to ensure all their workers are treated equally.
In an attempt to keep both workers and customers happy, Ring said some businesses can try finding different ways to compensate their employees.
"That could be things like employee benefits, hybrid work situations... there's lots of different ways employees can be incentivized that is over and above straight compensation."
Overall, Ring believes the wage increase is a double-edge sword. While it will help put more money in the wallets of some people, it may financially hurt businesses, which in turn could impact customers.
Fortunately, Ring has heard very little from CK businesses about layoffs. The concerns he has heard usually stem around consumer prices.
