Businesses Including Tim Hortons Have To Look At The Bottom Line: College Biz Professor
A business professor at St. Clair College believes any business person has to look at the bottom line when it comes to absorbing the jump in the minimum wage.
Phil Cohen is a professor of international business and believes Tim Hortons' is not being a bully by reducing benefits to their employees because of the increase minimum wage.
Ontario Premier Kathleen Wynne accused the children of Tim Hortons' billionaire co-founders of bullying their employees by cutting their benefits and no longer paying employees during their breaks
Cohen says Tim Hortons is like every other business and there is only so much a business can do.
"They have two choices don't they," says Cohen. "One is to raise prices and the other is to lower costs and there has to be a balance between the two and each company whether it is Tim Hortons or Joe's Variety Store or any corporation, they are facing that same challenge."
Cohen adds each company is going to handle the situation in a different way based on their current financial standing.
The minimum wage jumped to $14/hour this month, up from $11.60/hour. It jumps to $15/hour next year.
Cohen admits that businesses, big or small, are stuck between a rock and a hard place.