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Fighting Back Against Rising Labour Costs with Automated Packaging

On November 22, 2017, the Ontario Government voted on and passed bill 148. The Fair Workplaces, Better Jobs Act, 2017 looks to make several changes to the existing legislation. This includes the Employment Standards Act of 2000, the Labour Relations Act of 1995 and the Occupational Health and Safety Act. The changes are designed to increase wages and benefits for minimum wage and temporary employees.

What Do These Changes Mean for Your Business?

Labour costs are going up. As of September 2017, there were as many as 52,000 Ontarians classed as minimum wage employees. With the increase in the minimum wage, that number is expected to rise to 1,610,000. The increase is caused by the number of employees who earned over the minimum wage, but less than the newly implemented rate. This increase will raise the percentage of minimum wage employees from 7% to 22% of the total employed workforce.

Before the increase, the annual wages for a full time, minimum wage employee was $24,128 annually. It is important to note though, that after all contributions are made, the employee would cost a business $26,034.11 annually. With the changes to the minimum wage, this annual cost will increase to $31,403.01 in 2018 and $33,646.08 in 2019. This is an increase of $5,368.90, and $7,611.97 of the 2017 minimum wage rates respectively.

Due to the 2018 increase, an employer with 25 minimum wage employees will see an increase in labour cost of $134,222.40. By 2019 the employer would see an increase of $190,299.20 when compared to their minimum wage labour costs in 2017.

What a Full-Time Minimum Wage Employee Costs a Business

2007 2010 2016 2017 2018 2019
Minimum Wage
$8.00 $10.25 $11.40 $11.60 $14.00 $15.00
Wages (40 Hour Work Week) $16,640.00 $21,320.00 $23,712.00 $24,128.00 $29,120.00 $31,200.00
CPP Contribution (4.95%, rate unchanged since 2003) $823.68 $1,055.34 $1,173.74 $1,194.34 $1,441.44 $1,544.40
EI Contribution $299.52 $368.84 $445.79 $393.29 $483.39 $517.92
WorkplaceNL Contribution $214.66 $298.48 $346.20 $318.49 $358.18 $383.76
Total Contributions $1,337.86 $1,722.66 $1,965.72 $1,906.11 $2,283.01 $2,446.08
Total Cost to Employers $17,977.86 $23,042.66 $25,677.72 $26,034.11 $31,403.01 $33,646.08

How to Lessen the Effects of The Minimum Wage Increase

Labour costs are going to be one of the biggest issues encountered by business moving into 2018. The ability to control and optimize the workforce is at the top of every business’s mind. Automated packaging equipment and processes offer business the ability to reduce the labour required to complete a task. This leads to a decrease in labour costs and an increase in profits.

What is Packaging Automation and How Does It Help Your Business?

Automated packaging equipment and processes mitigate labour costs and increase production rates. Packaging automation can range from semi-automated solutions to fully integrated packaging lines that form, fill, seal and unitize goods as they come off the production line. These systems allow business to utilize higher levels of efficiency while producing a more consistent pack.

Man packing wine bottle in case for case sealing machine

Crawford’s Automated Packaging Solutions

We have been working with business to develop knowledge-based, impactful packaging solutions for over 50 years. Our highly trained and knowledgeable team will perform a free packaging solution consultation to develop a comprehensive understanding of your packaging process. This allows them to identify your packaging goals and any pain points that need to be addressed. Solutions can include updating equipment or the addition of environmentally friendly, cost-effective materials. Our Packaging Specialist will work with you to develop a custom-tailored automation plan. The plan is designed to increase your packaging throughput and improve per pack costs.

Stretch Wrap Machine in Manufacturing Facility

Packaging Automation for Manufacturers

Packaging can offer manufacturing business a variety of automation options to help control labour costs and improve throughput volumes. Our team of Specialists will work with you to identify low productivity areas that can be improved through the automation process. We help manufacturers optimize their labour efforts or reduce the required labour for a task. Our packaging automation areas for manufacturing include: Carton forming and sealing, stacking and palletizing of goods, the addition of protective packaging materials and the proper unitization of products and loads to ensure safe delivery.

Top Packaging Automation Equipment for Manufacturers

Packaging Automation for the Produce Industry

Making sure your produce is packed and sent to market quickly can be a task that requires large amounts of labour. Our produce packaging automation solutions look to provide growers and packers with cost-effective alternatives to manual packaging options. Automatic feeding conveyors, packing machines and collection tables increase packaging throughput while requiring fewer packers and operators to complete the task. Our lines of automated equipment use state of the art packaging materials that increase produce shelf life and improve product visibility. Stand out on the crowded retail shelves with environmentally friendly packaging options. Our automated produce packaging equipment can produce a pack that uses up to 25% less packaging than other produce packaging solutions.

Packaging Automation Equipment for Produce Growers and Packers

Crawford PackFlight Conveyor System Shrink Packaging English Cucumbers

Sealed Air NewAir I.B. Express Bubble on Demand System

E-commerce and Order Fulfillment Packaging Automation

E-commerce and order fulfillment centres live on the ability to pack and ship their products quickly and safely. With a wide assortment of products and carton sizes, the ability to adjust their packaging on the fly is a key to success. Our packaging automation solutions for e-commerce and order fulfillment centres look to provide packers with the flexibility to alter their pack quickly and efficiently. This efficiency ensures a quick pack that optimizes both space and material.

Recommended Packaging Automation Equipment for E-commerce and Order Fulfillment

Could You Benefit from Packaging Automation?

Will you be seeing a substantial increase in costs in 2018 due to the increase in minimum wage? Are you experiencing poor efficiency or consumption rates? The addition of automated packaging equipment may be your solution. Contact Crawford Packaging and speak with one of our Packaging Specialist today and learn how you can benefit from automation in your packaging solution.

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