Minimum wage hike will go ahead in 2010, Ontario premier says

The Ontario government will go ahead after all with a boost to the provincial minimum wage next year, Premier Dalton McGuinty said Monday.

Last week, McGuinty mused about delaying a 75-cent hike in the mandated hourly stipend in 2010 in the wake of the province's manufacturing crisis.

But on Monday, the premier changed his mind after his government was subject to blistering criticism from poverty groups about a possible delay.

"I take responsibility for muddying the waters. We will honour that commitment,” McGuinty said in question period at Queen's Park.

Previously, the government had laid out a long-term plan to hike the minimum wage above $10 next year. That schedule includes a 75-cent increase set to take effect Tuesday, which will push the hourly rate for the lowest-paid workers to $9.50.

The near-term wage increment was never in question.

But last week, McGuinty held out the possibility of instituting a hiatus on next year's 75-cent increase depending upon business conditions in 2010.

Poverty groups and other social activists, however, blasted the government for any backsliding on the wage hikes.

"When tens of thousands of Ontario families are losing their jobs or working two to three jobs just to make ends meet, now is exactly the wrong time to be stalling and postponing a raise in the minimum wage," said Andrea Horvath, Ontario's NDP leader.

Whether or not a higher minimum wage costs jobs or reduces poverty has been hotly debated for decades.

Some businesses decry such increases, arguing that high costs for companies inevitably lead to fewer jobs for the unemployed.

On the other hand, anti-poverty advocates maintain that higher wages induce companies to train those workers better.