justin_o_guy2
Serious Thumper
Offline
What happened?
Posts: 55279
East Texas, 1/2 dallas/la.
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Economic Law
basic fact of economics for businesses of all sizes is that when certain costs go up, like employee wages, other costs must be reduced in order for the businesses to retain a similar profit margin as was maintained before the changes. Thus, we see that in response to a mandatory hike of the minimum wage in the Canadian province of Ontario, a franchisee of the popular Tim Hortons coffee chain has chosen to reduce certain employee benefits in response to higher labor costs rather than lay off any of their workers, according to The Washington Times. The franchise owners, Jeri Horton-Joyce and Ron Joyce Jr. — daughter and son-in-law of founder Tim Horton — let their employees know in a letter that some of their benefits had been cut in response to the minimum wage rising by $2.40, an unfortunate but necessary unintended consequence of the mandatory pay raise.
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