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141,927 small and medium-sized businesses in Quebec will be affected

141,927 small and medium-sized businesses in Quebec will be affected

A new report from the Canadian Federation of Independent Business (CFIB) indicates that a mandatory living wage of $20 per hour in all Canadian provinces would cost an additional $44.9 billion in wages.

It estimates that this would hurt the profitability of nearly 600,000 companies. In Quebec, this would represent 141,927 small and medium-sized businesses and cost $10.25 billion.

“Too often, the country's minimum wage setting policies do not take into account economic reality and are based on subjective and unpredictable criteria,” François Vincent, vice-president of Quebec at the CFIB, said in a press release.

“Governments should focus on a practical approach that will help workers deal with the increasing costs of living without increasing the burden on SMEs,” he adds. Adopting a minimum wage of $20 per hour would have extremely harmful consequences for citizens and the economy.

According to the study, Ontario will be the province most affected by this measure, with 200,387 small and medium-sized businesses that could become unprofitable. Quebec and British Columbia (75,495) will complete the top three.

The negative impact

Recent increases in the minimum wage have forced 60% of SME owners to increase the salaries of other employees and 59% to increase the prices of their products and services. 31% said they had hired fewer young or inexperienced people, and 25% said they had reduced their headcount.

For the CFIB, this data will highlight the need to adopt a more nuanced approach to pay policies that takes into account their impact on workers and businesses.

“Canada's affordability crisis requires a more effective framework: We must ensure that rental, grocery and gasoline prices are stable and affordable while supporting workers and small and medium-sized businesses by reducing taxes and fees. These measures are This would greatly help the most vulnerable people. (NP)

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