The cuts go beyond the iconic coffee chain, with minimum wage workers at other businesses being told they're also going to take a hit as a result of the hike.
Sources tell CBC News Tims franchise owners are taking similar action in Leamington and Port Hope and at multiple locations in the Cobourg area.
One family that owns six franchises in Durham Region, east of Toronto, is cutting paid breaks at its locations because of what it calls a "massive" increase in labour costs. Ontario's minimum wage rose to $14 an hour from $11.60 on Jan. 1, and it will go to $15 next year.
The details were outlined in a letter handed out to employees and obtained by CBC News.
"I'm sure some of you have wondered that with such a dramatic increase in wages if some or many of you will be laid off or lose your job. I want to assure you we are doing everything we can to eliminate that concern," the owners wrote.
"Unfortunately when wages rise at such a fast pace we cannot raise our prices at the same rate to offset the costs and something has to give."
"Effective January 1, 2018 we will no longer be able to provide the benefit of paid breaks."
This follows revelations first reported by CBC News about actions taken by Ron Joyce Jr. and Jeri Lynn Horton-Joyce, the son and daughter respectively of Tims co-founder Ron Joyce and the late Tim Horton and the married owners of a franchise in Cobourg.
Ron Joyce Jr. Enterprises Ltd. gave staff members a letter to sign indicating that they agreed to a series of compensation changes, including eliminating paid breaks, and asking them to pay the majority of costs associated with benefits.
CBC News has been unable to reach Ron Joyce Jr. Enterprises Ltd. Employees say the principals are at their winter home in Florida.
A spokesperson for the Great White North Franchisee Association, which represents Canadian franchise owners who have been squabbling with Restaurant Brands International, their corporate head office, says they have been in touch with Ron Joyce Jr. and Jeri Lynn Horton-Joyce since this story broke.
"They have made it clear to me that because of RBI's statements in the past that they do not want to put themselves in jeopardy by speaking with the media," said the spokesperson, who did not want to be identified.
'Hard-working small business owners'
But in a later statement the spokesman defended Ron Joyce Jr. and Jeri Lynn Horton-Joyce. "They, like many Ontarians, are hard-working small business owners who are striving to keep their business viable and keep all of their employees employed."
The move by the two prompted a sharp response from Ontario Premier Kathleen Wynne.
"To be blunt, I think it's the act of a bully," said Wynne in an interview with CBC News.
"And if Mr. Joyce wants to pick a fight, pick that fight with me and not the people who are working at the service window of the stores."
"Tim Hortons is a really important part of daily life of millions of Canadian families. But so is having a decent living wage," she said.
The franchisee association responded that Ron Joyce Jr. and Jeri Lynn Horton-Joyce have "chosen to make a business decision based on the fiscal realities that have been thrust upon them by the premier and her government."
Tim Hortons franchises are not the only businesses responding to the minimum wage increase by cutting in other areas.
In a thread posted on Twitter, columnist and freelance writer Andray Domise posted a copy of a document — which he shared with CBC News — outlining increases to the tip-out at Sunset Grill, a popular Ontario chain of breakfast restaurants, in the wake of the wage hike.
Servers at restaurants are often required to pay some of their tips out to other workers who don't receive gratuities.
Sunset Grill is raising the amount servers have to pay "to ensure the continuation of successful operations following the increases of minimum wage rates."
"Coinciding with that 20 per cent increase in minimum wage they get hit with a 25 per cent increase in their tipping clawbacks," Domise said.
It's unclear how the increased clawback on tips would offset costs.
A recorded message at Sunset Grill's head office said it was closed and no one would be available until Jan. 8.
A Sunset Grill server who asked to remain anonymous told CBC News their wage increase is now effectively nil.
"This is a big deal and it's just really about the principle of it all and how it's happening," they said.
"People are very upset about it."
"That [increase] helps with groceries. I work with one girl who supports her husband and her daughter; she's the sole earner of the household. So for some people it does mean a lot."
Servers at Wimpy's and East Side Mario's, Ontario restaurant chains, also told CBC News their tip-outs went up as of Jan. 1. In the case of East Side Mario's the server said he will be paying out 30 per cent more.
No longer salaried employees
Other businesses are making changes to employee status or benefits.
A car dealership in Chatham, Ont., sent a memo, obtained by CBC News to its casual drivers stating, "Please be advised as of January 1, 2018 we will no longer be paying by the hour for driving services, instead we are switching to a 'Per Trip' payment."
"You will no longer be considered an employee of Victory Ford Lincoln Sales Ltd. but rather an Independent Contractor and will be paid as such."
An employee at the dealership directed inquiries to the manager, who did not immediately respond to an email seeking comment.
Employer changes his mind
At Rainbow Foods, a specialty food and supplement store with two locations in Ottawa, employees were set to lose two paid 10-minute coffee breaks under a new policy implemented after the wage hike.
"Minimum wage workers in Ontario like me are going to be retaliated against," said one employee.
Co-owner Mischa Kaplan told CBC News his only other choice would have been to cut staff.
But since the publication of this article, Kaplan says he has reversed the decision.
"We've gone back to what we originally had in place, mainly due to some customer and employee concerns that were raised," he said.
"Our plan is to find a consultative solution that can mitigate the extra costs from the new legislation."
A CIA agent was the "main projector" of deadly demonstrations in Iran with assistance from Israel and Saudi Arabia, the country's chief prosecutor alleged on Thursday.
Planning for the plot - dubbed "Consequential Convergence Doctrine" - was initiated four years ago by an operative from the Central Intelligence Agency, Iran's prosecutor Mohammad Jafar Montazeri was quoted by the state-run IRNA news agency as saying.
The CIA operative and an agent affiliated with Israel's Mossad intelligence agency were in charge of masterminding the unrest, while Saudi Arabia paid for all the expenses, he said.
The US government has denied having any hand in the protests and the CIA declined to comment on the allegations.
At least 22 people have been killed and more than 450 arrested since anti-government demonstrations erupted across Iran on December 28.
The protests, which have focused on economic and political grievances, have been the largest display of public dissent since pro-reform rallies swept the country in 2009.
Iran's interior minister said about 42,000 people took part in the week of demonstrations. Abdolreza Rahmani Fazli said in a statement Thursday the figure was "based on precise statistics we have".
"The relevant authorities have reported that there have been at most 42,000 people, and that is not a very high number," Fazli said.
The US Department of State said on Thursday it had the authority to hold the Iranian government responsible for the protester deaths.
"We condemn in the strongest possible terms the deaths to date and the arrests of at least 1,000 Iranians," Department of State spokeswoman Heather Nauert told reporters.
"We have ample authorities to hold accountable those who commit violence against protesters, contribute to censorship, or steal from the people of Iran. To the regime's victims, we say: You will not be forgotten," she said.
Iranian army chief General Abdolrahim Mousavi offered to assist police against anti-government demonstrators, though the protests have died down in recent days.
"In the event it is necessary, the army would take part in the fight against those led by the devil," Mousavi said on Thursday, according to the Asriran news portal.
Iran's Supreme Leader Ayatollah Ali Khamenei and other hardliners in the country's theocratic leadership have insisted for days the protests were fomented by foreign powers.
But moderate President Hassan Rouhani said the demonstrations were about jobs and human rights.
Original Article
Source: aljazeera.com
Author Al Jazeera News
No comments:
Post a Comment