Raising the minimum wage to $ 20 an hour would create a “significant economic shock,” warns the Minister of Labor, Employment and Social Solidarity, Jean Boulet.
The Legault government thus closes the door to a proposal from the chairman of the board of directors of Cogeco, Louis Audet. The latter advocates this measure of “social justice” to reduce income disparities.
In the press scrum Wednesday in Parliament, Jean Boulet dismissed an increase that would lower the current hourly rate from $ 13.50 to $ 20, a jump of nearly 50%. Premier François Legault, however, has set himself the objective of reducing the wage gap with the average in Ontario, but it will not be by increasing the minimum wage.
“We must go there gradually,” pleaded Mr. Boulet.
If the hourly rate suddenly drops to $ 20, “there would likely be layoffs, perhaps layoffs,” he fears, referring to companies’ ability to pay.
In addition, there could be an increase in the dropout rate among students who would be attracted to the job market, the minister continued.
“You have to be careful,” he suggested.
Mr. Boulet nevertheless hinted at a “significant increase” in the minimum wage next May due to the current upward pressure on wages.
He recalled that the current calculation mechanism to set the minimum wage provides that it must be equivalent to 50% of the average hourly rate in Quebec, around $ 26-27 according to him currently.
He did not want to open his game further. “I have no order of magnitude” on the increase to come, he concluded.
According to the Institut du Québec, the average salary in Ontario is 6% higher than that of Quebec.
The average hourly rate in Quebec is $ 24.94, compared to $ 26.43 in Ontario.
Quebec “has proportionally more employees whose hourly wages are between $ 12 and $ 26 and less whose hourly wages exceed $ 40”, indicates the Institute.