4 minute read
Minimum Wage + Language: The Union Advantage
Why does Minimum Wage even exist?
The Employment Standards Act (ESA) contains the minimum requirements that employers must meet to employ workers in this province.
The minimum. Because of hard work and determination of Labour Unions, activists, and workers’ rights advocates throughout the years, a minimum wage was first enshrined in Ontario law in 1920.
Before that, employers could basically pay as little as they wanted. That system saw many workers, including children, exploited by employers trying to get as much work out of people for as little money as possible.
Minimum wage laws protect workers.
And while establishing a minimum wage in 1920 was an important step, workers’ rights advocates are still trying to establish true pay equity and fight discrimination for many groups of people who continue to experience wage disparity.
Do we wish Minimum Wage didn’t have to exist? Yes.
It would be a wonderful world if every employer out there paid top tier, livable wages without having to be legally bound to do so. But we know that’s not the case, nor will it ever be.
My collective agreement has "Minimum Wage + " language, what does that mean?
UFCW Locals 175 & 633 is proud to negotiate and champion this kind of language into many of our collective agreements. It is important language for our members and goes a long way to protecting their hard-earned rates of pay.
This language ensures that if minimum wage goes up, anyone at a rate with the MW+ language will see an increase that keeps them ahead of the minimum wage.
When bargaining a collective agreement, this language is found in wage progression grids, and is often shortened to " MW+".
Couldn’t we just bargain for higher increases with each round of bargaining?
Your Local Union is always looking for ways to protect the membership through bargaining language that is proactive and looks toward securing a better financial future for our members.
MW+ language is exactly that: proactive.
There have been times when the minimum wage hasn’t gone up at all over the term of a collective agreement, and there have been times when it has gone up quite a bit.
• If minimum wage hasn’t gone up, employers are often reluctant to bargain good increases because there is little motivation for them to do so. Often, their reasoning comes down to if the government isn’t giving raises, why should they?
• If minimum wage goes up a lot, then employers often claim they can’t afford additional increases because of how much they have had to spend on legislated increases.
When minimum wage goes up a lot or there are multiple minimum wage increases over the term of a collective agreement, the wage grid needs to be overhauled and increases are proposed across the board to make it right.
In other words, your Negotiating Committees are left playing ‘catch up’ and it gives employers ample opportunity to say ‘there’s no money.’
And in bargaining, it’s not uncommon for employers with MW+ language in their contracts to try and get it removed: their reasoning always comes down to costs.
Despite these claims, your Union knows that these enhanced minimum rates also help employers recruit and retain employees. And your Union will continue to fight to add MW+ language whenever possible, and maintain and improve existing language at every round of bargaining for these collective agreements.
The benefits of having MW+ language
MW+ language means that increases are guaranteed. The gap negotiated into your agreement always maintains your rates ahead of minimum wage, which means you take home a greater rate of pay than just the legislated increases would provide.
Your Union Negotiating Committee always has the ability to try and bargain money over and above what the government is providing. And, with MW+ language, instead of hoping the employer is open to negotiating increases from scratch, your Committee can work toward improving the gap already included in your collective agreement.
The two-pronged approach of MW+ protects the integrity of negotiated wage scales in many collective agreements that the Local Union fought hard for over many years, and ultimately results in members making significantly more money over time.
Minimum wage is going up
On October 1, 2024, the minimum wage in Ontario will go up to $17.20 per hour. Check your pay stubs to ensure your rate is correct and contact your Union Steward or Union Rep right away if you notice any problems!