With the increase in minimum wage this year to a $14 an hour and another increase next year to $15, local cab companies are beginning to buckle under the staggering costs of doing business in North Bay.
These sentiments came to light last night at a public meeting held by police to take in the concerns of local cab companies, drivers, and other interested parties. But it wasn't just cab companies present. Opening the meeting was North Bay & District Chamber of Commerce President, Peter Chirico.
"These companies have no latitude in increasing their prices without the police services board," he said. "The playing field is not level. Extraordinary and outside influences have unbalanced the playing field.
“The taxi industry is the only industry I know where there is a board that governs everything we do,” U-Need-A-Cab owner, John Strang presented last night. “Over the past 10 years we've received annual increases that cover the cost of living, but other costs to do business are getting out of hand.”
Strang pointed to costs of fuel nearly doubling since he purchased the business a decade ago, as well as costs in car maintenance, internet, and phone, among others, have all increased dramatically over the years.
“The Minister of Labour in Ontario said businesses would have to increase the price to offset the minimum wage increase,” Strang said. “But we can’t do that ourselves, only the police can.”
Currently, local cab companies can increase their rates parallel to the Consumer Price Index, but the CPI for 2017 remains to be released and would not reflect the drastic jump in the minimum wage in Ontario.
Strang proposed an increase to the drop rate - the charge that is given before the wheels start rolling - from $4.60 to $5.60, while also increasing the roll rate slightly - the amount charged per kilometre travelled.
Conversely, Nicky Neal, owner of 5-0 cab said an increase in drop rate that high would be a sticker shock to all cab riders in North Bay and that they’d step out of the cab before the wheels even start rolling.
Neal said, “$4.60 is already too high and it's a shock to most people,” she argued. “Toronto has their drop rate at $3.25 to compete with Uber and ridesharing. We should decrease drop rate and increase roll rate.”
Neal said most people who use their services are on fixed incomes and the increases would price them out, especially considering most places are increasing the costs of goods and services in response to the minimum wage increase.
Deputy Chief Scott Todd said there was some meaningful discussion at the table and many of the recommendations and comments would be brought to the police board at their next meeting on Feb. 13.
