Wage increase falls short

The announcement by the Ford Government of its intention to raise minimum wages in Ontario got us thinking about how this would affect restaurant owners and wait staff.
It makes complete sense that most minimum wage earners would gladly take. The modest increase from $14.35 to $15, but the big news here is the proposal to eliminate the special minimum wage rate for liquor servers. They would get a 19.5 per cent increase in their minimum hourly wage, going from $12.55 per hour to the “harmonized” $15 per hour minimum wage.
A 19.5 per cent raise sounds like cause for celebration, but is it?
Restaurateurs, servers and diners alike are not sure how this will play out.
There is some concern that if the hourly wage is higher (although still quite low compared to the true cost of living as illustrated by a living wage calculation of $19.05 in Simcoe County and $22.08 in Toronto) and diners reduce the amount they tip, servers will be no further ahead, and possibly earning less in the end.
It’s kinda nuts to really contemplate that this whole time we have been going out to restaurants and being served by people who are making less than minimum wage, solely “based on the belief customer tipping can make up the difference.” The lawmakers have determined that in this field the customer shall make a transaction directly with the person who carries the food over to your table.
When you think about it, it is obvious how precarious the pay model is, dependent on the generosity of the customer.
Serving is a female dominated industry and the case has been made that tipping enforces gender stereotypes and maybe even incentivizes a server to behave a certain way “for the tips,” especially in nightclubs and so called “breastaurants.”
Servers says they have to put up with quite a bit of sexual harassment in the industry, and there are long hours and late nights, but they are in it for the tips.
This new minimum wage proposal will only be a true raise if diners continue to tip, or better yet, if a mandatory gratuity is added to the bill so that it is not so performance based.
The goal here should be to make the workplace more secure and with compensation that is equally stable and lucrative enough to live comfortably.
Change is scary and we would hate to see an industry that is seen as a good option for people to make a decent living, even though they don’t have specific qualifications, destabilized. We disagree with the “unskilled labour” category believing there is really no such thing.
As we come out of the pandemic, people have missed the option to go out to a restaurant and enjoy a meal with family and friends. Creemore’s economic model is based on shopping and dining.