Restaurants Canada is disappointed that the federal, provincial and territorial governments have ignored concerns raised by employer groups – particularly employers of youth – about the impact of a broad-based approach to pension reform.
We have asked governments across Canada to consider enhancements to the CPP that won’t jeopardize entry-level jobs and that wouldn’t be unfair to youth workers, whose entry-level wage contributions will have little impact on their retirement incomes.
Allowing exemptions for employees earning under $25,000, or who are under 25 years old, would have ensured that CPP enhancements targeted the Canadians identified as most needing support: middle-income earners.
Although changes are being portrayed as modest, a 20% increase in premiums from $4.95 to $5.95 is a significant new cost for employers, particularly in a labour-intensive sector like restaurants, and will impact operators’ ability to hire staff and sustain jobs.
Restaurants Canada is urging governments not to ratify this agreement until more details are available on how it will impact workers at various ages and income levels.