Money By the numbers: How much will the minimum wage hike cost Tim Hortons?

18:51  09 january  2018
18:51  09 january  2018 Source:   Metro News

Minimum wage hikes could cost Canada's economy 60,000 jobs this year

  Minimum wage hikes could cost Canada's economy 60,000 jobs this year Minimum wage hikes across Canada this year could cost about 60,000 jobs, the Bank of Canada warns in a new report.The central bank published a report over the winter break, attempting to calculate what sort of economic impact a series of minimum wage hikes set to come into force this year will have on Canada's economy.

Here’s how some businesses are reacting: Tim Hortons . In total, Subway said the cost of employee wages “have risen by over 20%.” Only time will tell how the minimum - wage hike truly changes Ontario’s economy.

READ MORE : Premier Wynne accuses Tim Hortons ’ founders’ children of bullying employees. Kelly explained that the minimum - wage hike represents a massive increase in costs for businesses, and that the negative consequences on workers are inevitable.

The association representing many of the Tim Hortons franchises in Canada says Ontario's minimum wage hike will cost the average outlet $243,889 per year.: By the numbers: How much will the minimum wage hike cost Tim Hortons?© Provided by Free Daily News Group Inc By the numbers: How much will the minimum wage hike cost Tim Hortons?

The Great White North Franchisee Association says the minimum wage increase will cost the average Tim Hortons franchise $243,889.10 a year

Here’s a closer look at the numbers provided by the association, which says on its website it represents 50 per cent of the Tim Hortons chain in Canada.

The figure is based on a minimum wage increase of $2.40 an hour

The calculation assumes the $2.40 increase will be applied to every worker’s salary.

Only employees who were making the previous minimum wage, $11.60 an hour, are legally entitled to the new rate, $14.

Patrons boycott Tim's over employee treatment

  Patrons boycott Tim's over employee treatment Patrons boycott Tim's over employee treatment"No one has ever seen me without a Tim Hortons cup in my hand," said the in-house trade union counsel.

READ MORE : Children of Tim Hortons founders cut employee benefits due to Ontario minimum wage hike . WATCH: Tim Horton ’s location trims worker benefits citing minimum wage increase. A lot depends on how high the minimum wage is compared to the average wage .

Tim Hortons restaurants say that this will cost them ,968 per year for each full-time employee and each location has about… Well, January 1st Ontario’s minimum wage hit .00 per hour and I haven’t heard so much BS on the news since Trump’s last tweet.

Some businesses have said the higher rate will inflate their entire payroll because they want to maintain pay differentials between newer hires and more senior staff.

The $2.40 rate is bumped up to $3.35 an hour when other costs are factored in.

GWNFA says this figure includes Canadian Pension Plan, Employment Insurance, Employee Health tax, workers’ compensation premiums, training costs, sick leave, and increased vacation pay.

Increased vacation pay introduced by Bill 148 will only impact workers who have been with a company for five years or more. They will now be entitled to three weeks leave.

Average number of employees at a Tim Hortons store: 35

Average increased cost for one full-time employee: $6,968.26

Divided by the hourly cost increase (of $3.35) per employee and a 52-week year, this figure suggests Tim Hortons employees work a 40-hour week.

Tim Hortons heirs cut paid breaks and worker benefits after minimum wage hike, employees say

  Tim Hortons heirs cut paid breaks and worker benefits after minimum wage hike, employees say Employees at a Tim Hortons franchise owned by the children of the chain's founders say they're losing paid breaks and other benefits in response to Ontario's minimum wage hike.RYAAY

Author Douglas Hunter, who wrote Double Double: How Tim Hortons Became a Canadian Way of Life, One Cup at a Time, appeared January 4 on CBC Radio’s As It Happens. Three stocks that will benefit from the minimum wage hike .

The association representing many of the Tim Hortons franchises in Canada says Ontario's minimum wage hike will cost the average outlet 3,889 per year. (eduardo lima / the canadian press file photo).

The Star obtained a week’s schedule for one Toronto-based Tim Hortons franchise. It listed 30 employees and four managers. That week, the average working week for employees was around 25 hours. This may not be typical for other Tim Hortons locations.

According to 2016 Statistics Canada data, the average food services employee in Toronto works 30 hours a week.

Some 46 per cent of Toronto food services employees worked part-time in 2016.

The Canada-wide average for accommodation and food services sector in 2017 was 35 hours a week.

A final note: students under 18 who work 28 hours or less when school is in session, or work during a school break or summer holidays, have a lower minimum wage. Their minimum hourly rate is $13.15.

GWNFA did not respond to the Star’s request for additional comment.

Wage hike triggers food industry divide .
Signs announcing price increases and letters to employees slashing benefits have grown rampant in Ontario, revealing two very different approaches businesses have gravitated toward in the wake of province's minimum wage hike. OTCM

—   Share news in the SOC. Networks

Topical videos:

This is interesting!