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Ontario Government Research Shows ORPP Will Lead to Job Losses and Pay Cuts

Author: 2016/02/16

The Canadian Taxpayers Federation (CTF) has obtained documents through the Freedom of Information and Privacy Act that reveal the government’s own research about the Ontario Retirement Pension Plan (ORPP) shows the plan will kill jobs.

Two reports by Ekos Polling for the Ontario government summarize the results from focus groups across Ontario on perceptions of the ORPP. Ekos discovered that 59% of Ontario businesses expect to cut/freeze wages in response to the ORPP.

“It’s remarkable the Ontario government didn’t walk away from the ORPP when they saw this research,” said CTF Ontario director, Christine Van Geyn. “The ORPP is being sold as a benefit to Ontario employees, when in reality it will mean many of them will end up worse off.”

The Ekos research for the Ontario government also found:

  • 54% of businesses are considering a hiring freeze in response to ORPP;
  • 2/3 of businesses expect to make other operating cuts.

The government’s own research also shows that larger businesses are considering various responses to the ORPP, including:

  • Cancelling existing company pension plans;
  • Planning for layoffs or ‘restructuring’ of employee status.

Smaller companies and sole proprietors told the government that in response to ORPP they would redefine employee positions as strictly contractual, or they would pay themselves in dividends instead of as employees to avoid ORPP obligations.

“The premier needs to halt her plans for the job killing ORPP,” continued Van Geyn. “Wynne needs to listen to her own research, and instead focus on making Ontario an affordable place to live and do business.”

To view the FOIP documents please click HERE and HERE.


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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