Wynne says she saw wage blowback coming

Ontario Premier Kathleen Wynne says she fully anticipated the ripple effects of increasing the province's minimum wage, including rising daycare costs.

Speaking on CBC Radio's Ottawa Morning Thursday, the premier said her government is working to offset some of the costs that have risen since the minimum wage rose to $14 per hour on Jan. 1.

That includes a payment of $12.7 million to municipalities to help absorb rising daycare costs, Wynne said.

"My expectation would be that as the money comes from the municipalities to the daycares, then those fees will go down," she said.

Some daycares have increased their fees despite that financial help from the province.

It's not clear how municipalities have distributed the money: on Monday the minister responsible for early childhood education, Indira Naidoo-Harris, said some daycares have received the extra funding, and promised to follow up to find out where the rest of the money went.

Anticipated reaction

Wynne said she also anticipated the negative reaction to the new minimum wage from business groups across the province.

There is never going to be a time when businesses say, 'Yup, this is the right time to raise the minimum wage.'- Ontario Premier Kathlees Wynne

"There is never going to be a time when businesses say, 'Yup, this is the right time to raise the minimum wage,'" Wynne said.

"I understand businesses have to look at their bottom line, but I think there is a bottom line that includes decent lifestyle for employees."

Wynne pointed out the Ontario government lowered the small business tax rate to 3.5 per cent from 4.5 per cent in an attempt to help businesses adapt to the increase.

But businesses across the province, most notably Tim Hortons, have begun to cut worker benefits and paid breaks in the wake of the wage hike.

Wynne said she's working with businesses to try to come up with other solutions such as subsidies for training young employees.

Wynne will hold a town hall meeting in Ottawa at Ben Franklin Place on Centrepointe Drive at 7 p.m. Thursday.