Tim Hortons Minimum Wage Essay

Summary:

After when the Premier of Ontario Kathleen Wynne raised the minimum wage from $11.60 to $14.00, many Tim Horton Employees are unable to have any break times. Furthermore, many customers will eventually have to pay more for any food item they order at Tim Hortons. Because of the minimum wage affecting 2018, the Franchises at Tim Hortons are cutting employee hours, removing paid breaks, and reducing the funding of employee benefits. RBI (Restaurant Brands International) is found by a Brazillian investment company called 3G Capital. The RBI is mainly responsible for controlling franchise cost, such as controlling the prices of any fast-food restaurants. The RBI has received negative comments by the press about being unfair to the franchises

The idea of minimum wage is the lowest salary an employee will receive after doing a job work. Jacqueline Hansen (2015) explains that “Ontario's recent minimum wage increase is controversial, partly because it's unclear what exactly a modern minimum wage is supposed to achieve.” Recently, the premier of Ontario Kathleen Wynne decides to raise the minimum wage from 11.60 to 14 dollars. In the current news, Tim Hortons realized there was a new minimum wage affecting 2018. Afterwards, the franchises of Tim Hortons start to reduce employee hours, which eventually resulted in weaker financial outcomes. Studies have shown that “the negative impacts on employment levels is small, more state and local governments are opting to raise wages above the federal minimum” (Donnely, 2017). Furthermore, this can lead to higher chance of unemployment rate and their loss of job due to the increase of minimum wage. From this, Tim Horton employees are starting to work less hours and deliberately have no breaks. As Minimum wage takes on effect in 2018, the Bank of Canada estimates that there will be 60,000 fewer jobs by the end of the year. The increase of minimum wage is happening too quickly as this happened after the labour reform legislation was passed by the premier of Ontario. This is all due to increases, labour income will be higher (The Canadian Press,

The textbook defines productivity as the ratio of an organization’s output to its inputs (Dessler, Chhinzer, & Cole, 2013). Many HR issues typically relate to how effective the workforce is progressing. Furthermore, employees need to consider their level of productivity to ensure the business is running competently. If the productivity is low, employers and franchisers need to determine whether the issue is caused by the lack of work experience or resources. Tim Hortons realize an increase of minimum wage and this has resulted in many downsides. It is very inefficient to have the employers of Tim Hortons eliminate breaks and continuously work non-stop. Abby Wolfie (2017) explains “when one focus on something for too long, [the] [brain] [becomes] tired. When [one’s] brain faces fatigue, we have difficulty focusing, making decisions, thinking clearly, and avoiding distractions.” This clearly shows that when employees of Tim Hortons are not allowed to have breaks due to the minimum wage increase, it slows down the worker’s performance, as well as productivity and efficiency levels. It is essential that every company needs to sustain their productivity and efficiency, or else the workforce and the employers will start going