Maybe government should pay faster instead of hiking minimum wage
Katherine Wynne is clued out in some respects. She has never had to manage a business that needs to make money to survive in a viciously competitive environment. There is no competition for the provincial government, or any government for that matter. Wynne’s government believes that small business owners are “fat cats” rolling in dough. What a crock. The fact is that many small business owners scramble every two weeks to meet payroll obligations. For many of us, cash flow is beyond tight. So many small business owners oscillate each pay period close to insolvency as they wait inordinately for large clients, including government to pay. Sometimes public sector clients pay in 90 to 120 days after receipt of an invoice. So, small business owners in the service sector end up subsidizing the public purse without being paid interest on receivables. The truth is that small business owners are made up of a wide range of people, experiencing a wage range of business circumstances. Many people end up starting a business to resolve their long-term unemployment crisis, only to realize that scraping by is the norm for many years. Then there is the difference between service sector employers as compared to manufacturers and or distributor with a product, or product line. Service sector employers can’t just, or easily pass on increased labour costs to their clients, especially those that use a competitive bidding process such as tenders. I wonder if the government is now going to increase the amounts allocated to projects to compensate for the the ridiculous wage hikes. What about projects that have already been awarded, will government adjust project costs to reflect new wage rate requirements? Better yet, will the government now pay its service contractors in a more timely manner to help meet the business’ already challenged wage obligations. The point is that service sector customers have little avenue to absorb increase wage rates. So, all that has happened is that the government has now made tight cash flow situations worse for many small.Government should now pay its contractors faster as a way to help out hurting service-sector employers..