Tecumseh's mayor says taxpayers will have to reach far into their wallets unless the province exempts small towns like his from Bill 148.
Gary McNamara is asking the Ontario government to remove smaller municipalities and rural areas from its Fair Workplaces, Better Pay Act before it goes to third reading and becomes law. The bill has already passed second reading.
A demonstrator attends a downtown Windsor rally supporting $15/hr minimum wage in Canada. Photo taken April 15, 2016.
The legislation is intended to improve the plight of the working poor by, among other things, increase the minimum wage to $15/hr, a step McNamara supports. The problem is, it will also force towns to pay volunteer firefighters on par with ones in large cities, and provide emergency workers like snowplow operators with standby pay.
That alone will boost Tecumseh's bottom line by $2.1-million.
"The only way we can make up that $2-million is three ways: reduce the services, reduce investment, or raise taxes to make it up," says McNamara.
He says if the town is forced to swallow the cost and decides it can not reduce services or investment in things like roads and sewers, he fears taxpayers will be on the hook for a double-digit increase.
" [It would] put a lot of asphalt on the roads. It extends more sewers; protects against flooding," he says.
(BlackburnNews.com photo)
Earlier this fall, residents in Tecumseh, along with other towns across Essex County, experienced its second major flood in two years. McNamara also points out municipalities are mandated by law to provide emergency services. That means the town may have little choice but to boost property taxes.
The Association of Municipalities of Ontario has asked for changes to the bill in the past, but McNamara indicates provincial officials were not keen to make immediate revisions.
McNamara is not even sure why municipalities are covered in the bill, saying if the intent is to go after bad employers, the province should simply go after bad employers.
"We're employers of choice. The average wage is anywhere from $26/hr to $36/hr with full benefits," he says.