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Minimum-wage hike welcomed, but 'not even close' to matching cost of living, says worker

'I don’t know how the young kids do it today. How can they afford a one-bedroom apartment in Barrie let alone groceries,' says retiree who still works to earn extra income

Some Ontario workers will see their paycheques rise this week as an official increase to the province's minimum wage officially came into effect on New Year’s Day.

Workers making minimum wage will now earn $15 per hour, up from the previous hourly rate of $14.35, and liquor servers will see their hourly wages increase from $12.55 to $15.

Shawn Mombourquette, who works as a lift operator at Horseshoe Valley Resort, told BarrieToday it’s hard to say how the increase will affect himself and others currently earning minimum wage. Mombourquette is retired and works at the local ski resort “for fun” and to earn some extra income.

“I think anything you can get will help; it will always make a difference. It will maybe pay a little bit more in taxes and then you will maybe get a bit more back… but every time you go up a little bit more on your paycheque, you’re into a different tax bracket," he said. "They’ve got you cornered everywhere.

“I don’t think it’s really coming up that much (to match) cost of living. It’s not even close. You go buy six oranges and it costs $7… it’s ludicrous. I don’t know how the young kids do it today. How can they afford a one-bedroom apartment in Barrie let alone groceries," Mombourquette added.

Mombourquette said with the price of gas expected to jump to $1.65 per litre this year and grocery prices rising, any additional income people earn from this will likely just get absorbed there. 

“Where does it balance?” asked the Oro-Medonte Township resident

Courtney Simpson is about to turn 15 and is working her first job at a local bakery. The Springwater Township teen told BarrieToday she doesn’t think the increase will have too much of an impact. 

“It’s only a little bit more money than what I normally get paid, and being a student I don’t have to pay for the bills or electricity or house payments,” she said.

Simpson says many of her co-workers are older and she believes it will have an impact on them as it will provide them with little bit more money to help cover their expenses. 

She doesn’t think the increase in minimum wage will ultimately impact the cost of things too significantly.  

“I think where I work they will keep the prices the same, because more people are going to buy them with the increase in earnings," Simpson said. 

Students under the age of 18 who work 28 hours a week or less when school is in session or work during a break from classes will now make at least $14.10 per hour, up from $13.50.

The province says between January and November 2021, there were about 767,000 workers in Ontario making at or below minimum wage.

The pay increase comes as labour shortages have struck many industries and businesses are struggling with inflation and attracting talent.

— With files from Canadian Press