Municipal tax might need hike to pay for Fair Workplaces Act

Residents of Waterloo Region may see their taxes rise in the coming years to cover costs associated with Ontario's Fair Workplaces, Better Jobs Act.

If Bill 148 becomes law, it would raise the minimum wage to $14 by 2018 and would require all employers to give employees at least two paid sick days a year.

• Ontario's minimum wage hike could cost 50,000 jobs: provincial watchdog
• Will a $15 minimum wage be good for Ontario? Two experts debate

"If introduced, these changes would significantly impact the operational costs of the Township of Wellesley," wrote Theresa Bisch, Wellesley's treasurer, in an Oct. 24 report to council.

According to the report, the above changes alone would cost the township's recreation department an additional $12,338.41 in 2018.

In an email to CBC Kitchener-Waterloo, Bisch said the recreation department spent $81,596 on wages in 2016. The data for 2017 has not been calculated.

More to be calculated

The report notes five other changes that could affect the township's finances, should the bill pass its third reading.

• Employers would need topay employees for a minimum of three hours work, even if they work less than three hours. Employers also would have to pay employees for three hours of work if they cancel an employees shift within 48 hours of the scheduled start time, unless the cancellation is due to reasonable circumstances.
• Employees would be entitled to three weeks of vacation, paid to at least six per cent of wages earned, if an employee has worked with the employer for five or more years.
• Non-permanent staff would need to be paid comparablewages topermanent staff for comparable work.
• Family medical leave would increase from eight weeks to 27 weeks.
• Parental leave would increase from 35 weeks to 61 weeks for employees who take pregnancy leave, and from 37 weeks to 63 weeks for employees who do not take pregnancy leave.

Taxeffect

Wellesley councillors will have their first look at Bisch's report Tuesday night, and Mayor Joe Nowak expects there will be some good discussion over the numbers.

"The figure that you see in the report is really just for one part of the township," he told CBC News. "So, it's a little early to determine the cumulative effect there's going to be. We're going to be looking at the roads and the other departments as well."

...We will have something a little more concrete when we start talking budget, which isn't that far away now.- Joe Nowak

Nowak expects other municipalities in the region will be facing the same financial costs associated with the proposed legislation, but he hasn't yet talked to any of his regional counterparts about Bill 148.

He says there are three ways the township couldpay for the expected added expenses:

• Increase taxes.
• Increase user fees.
• Cut back on other services.

He admits that none of those options are appealing.

"I'm pretty confident in our treasurer that we will have something a little more concrete when we start talking budget, which isn't that far away now," he said.

Wellesley council's budget meetings are expected to begin on Jan. 15.